The top 5 bookkeeping habits you should start in 2022
With 2022 now in full swing, it is time to pick up some great bookkeeping habits that will enhance your year. Bookkeeping is incredibly important in business, and good bookkeeping can empower a business to achieve more. A great place to start improving your bookkeeping this year is to pick up some good habits. So, we have put together a list of the top 5 habits you should start this year.
1. Keeping the proof of your purchases
Keeping your proof of purchases is so important to ensuring your bookkeeping goes smoothly. It is vital that both your bookkeeper and accountant know what you are purchasing to ensure your tax strategy can be optimised. Receipts also help in determining your cash flow, the more data the more accurate predictions will be.
Fortunately, it is easier than ever to save your receipts with tools like DEXT. You can use these to create a digital space that stores your receipts. From there you can share them with your accountant and bookkeeper.
2. Setting due dates for business payments
Life can get really busy sometimes, especially if you are running your own business. Because of this, sometimes things fall through the cracks. But there are a lot of business payments that you don’t want to forget. These include rent, utilities, taxes, and payroll. Missing many of these payments could cause major issues for your business. So, the best way to avoid this is by setting reminders on the due dates of these payments.
3. Keep a petty cash system on hand
Petty cash systems are there to help your business with small expenses that often come up. These will be expenses like office supplies, reimbursing employees for expenses, and other small necessities. This is system is designed to be quick and easy to understand to help small businesses and their employees deal with any small transactions. The fund is generally only filled with a few hundred dollars and exists to better keep track of the small expenses that staff often forget to hand receipts in for.
4. Record your receipts and invoices and keep it in order
We have covered keeping your receipts recorded. But there is another level you can go to that will absolutely transform your bookkeeping. Keeping your receipts in numerical order, categorised by date, will allow you to streamline your bookkeeping. You will have a proficient audit trail going back behind you, making it easier to trackback. Through this you can find specific receipts or time periods easily, uncovering a lot of data on your finances.
5. Get a bookkeeper
The final, and best thing you can do for your bookkeeping in 2022 is to get a bookkeeper. A bookkeeper will make running your business far easier, taking time-consuming tasks off your plate. They will also ensure you have accurate regular reports, to ensure your data is available for you to use. With this you will have the latest data to back your business decisions, providing clarity and confidence.
Conclusion
Ensuring you get your bookkeeping right this year will help your business run smoothly, improving your confidence in your business’s position. If you want to reduce your business-related stress this year, start by looking at your bookkeeping. Implement these tips and see how it goes. For more bookkeeping advice, reach out to Link Books for a chat.
