When it comes to launching a start-up, one of the most important elements to establish early on is your bookkeeping system. By having a good way to record and verify your business financials, you can save time and run your business more effectively. However, many business owners make the mistake of thinking that simply by having a bookkeeper, this area is secured. There are different components that fit into a secure, consistent, and accurate bookkeeping system. With these notes considered, here are several elements you can integrate into your bookkeeping procedures and improve your business operations.
Have Your Documents Organized
When it comes to business activity on a large scale, it is important to keep things organized with a well-written system. Records that can get lost include retail transactions, auto usage, maintenance, as well as food, and general supply expenses. An excel spreadsheet, notebook, and calendar can be used in conjunction to help you organize your business activity and keep things tracked. When you perform transactions, always request a written receipt that is either faxed or emailed to you. As your team receives letters and documents in the mail, be sure to single out any particular invoices, bills, or other paperwork that can serve as proof of a transaction.
Have Data Recording in Place
As you collect and organize your data and record of transactions, be sure to have them properly stored and recorded on a monthly basis. While many office personnel have used spreadsheets for some time to organize data, you can also use a multi-column notebook to keep things in order. Other accounting systems exist that can help you organize and record your data, for instance, QuickBooks. These systems provide convenient options to help you store and categorize financial statements while freeing up more time for you to focus on your other endeavors.
Good Storage Capability
When it comes to large or long-term purchases, including property, equipment, vehicles, loans, or leases, then have a good storage system in place where they can be secured. In addition, have supporting documents for these purchases stored in a filing cabinet or folders with tab labels. You can further organize your folders by time period, subject, transaction volume, and more. These procedures can help you in future cases where you may need to retrieve transaction data. You can further bolster your system by scanning documents in PDF format. Have at least one backup copy of your financial transactions saved in separate locations. If the Internal Revenue Service (IRS) requests additional documents, you can readily retrieve them at your convenience.
With the growth of your business, your ability to store and maintain records through an accurate accounting system is important. By having your system established early, and making adjustments along the way, you can set your business up to be as successful as it can without creating unnecessary challenges. Consider outlining and integrating the aforementioned accounting strategies with your team as you look ahead to the next phase in your business cycle.