Monday, July 30, 2007

Top 5 Bookkeeping Secrets To Get Your Books In Shape

Now that year end and tax season is over, it's time to sit down and review your books and plans for the next year. I love tax time but not for the reasons you may expect. I love it because it gives me a chance to connect with my clients (I'm a virtual bookkeeper specializing in bookkeeping for Internet Marketers) and help them implement some simple tricks and strategize to help get their books in shape.

Here are my top 5 bookkeeping secrets:

  1. Keep an audit trail: I know, fancy bookkeeping word (scary to some because of the word audit) but an audit trail is simply a record of all your invoices, checks and expenses in numeric order. Does it sound daunting? Don't worry - there are many options to choose from when it comes to bookkeeping software. My personal favorite: Quickbooks.
  2. Due date reminders: Use your Outlook calendar, Trumba, Google calendar, wall calendar... anything! Be sure to set reminders for bills that are due, tax remittance deadlines, payroll remittance deadlines. You could save thousands of dollars per year simply by paying your bills on time (not to mention keep your credit rating in check).
  3. Bank statements: With the advent of the internet, e-bills are all the rage. Sure it's eco friendly but if you ever get audited, the auditor is going to want to see physical copies of everything, not digital. So at the very least, you should request a bank statement be mailed to you.
  4. Keep good records: Too many business owners don't keep good records. Bookkeeping is the glue that keeps your business together. Without good books, you can't make financially sound decisions for your business.
  5. Computer software: The biggest mistake people make is not taking the time to set up the software correctly when they install it on their computers. If you want a financial report you can trust, you will need to be sure it is set up correctly from the start.

Incorporating these simple strategies into your bookkeeping cycle will help streamline the books and make bookkeeping more enjoyable.

About the Author
Raquel Morphy is a virtual bookkeeper specializing in bookkeeping for internet marketers. A detailed checklist on how to set up your bookkeeping software can be found in her ebook: Bookkeeping Secrets Revealed. http://www.bookkeepingsecrets.com/

Source : http://www.goarticles.com/

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