Basic Bookkeeping Tips For Better Financial Management

Regardless of the type of business or the size of the business you are managing, without good financial statements, it will only lead to failure. The process of financial recording is the most important and is the most critical activity that must be done by every business¬†owner. Without it, you will never know the business condition until it’s all too late.

Bookkeeping – Fundamental knowledge in financial management

bookkeeping

Bookkeeping is a record-keeping activity of all financial transactions including purchases, sales, receipts and also payments and accruals for debts or receivables.

For you business-people, here are four important steps to take to support effective bookkeeping:

  1. Collect document sources including check records, deposit notes, bank statements, vendor bills, receipts for purchases and customer-issued invoices and more.
  2. Enter information obtained from document sources into journals and accounts.
  3. Perform end period procedures such as account balancing and reconciliation.
  4. Closing the book at the end of each period.

5 Tips on Doing Bookkeeping

# 1. Make Sure Your Records Are Organized

One of the most important bookkeeping tips you should always keep in mind is to keep your books organized so you can easily manage your information.

# 2. Using Accounting Software

Accounting software can assist you in presenting reports in real time and automating many functions so you can manage your bookkeeping more effectively and efficiently.

# 3. Keeps track of business financial data every month

It is important for you to always keep track of your financial data so you can evaluate, anticipate and monitor the growth of your business. Do this every month so it can help you in seeing the business conditions that are happening.

# 4. Have Future Planning

Make a planning ahead of how you want to manage your finances. For example, if you want to buy something to replace or upgrade business equipment or other expenses. Make sure you use your finances wisely.

# 5. Define the Account Chart

The account chart is a list of categories of each transaction that exists in your business. Generally there are 5 categories of transactions are:

  • Assets
  • Liabilities
  • Equities
  • Income
  • Expenses

It does not matter the type or size of your business, but if the bookkeeping you own is not properly managed then it will harm your business. Begin to improve your bookkeeping and follow the five tips above for better business management.

We have accounting software that can not only help you in handling bookkeeping activities but also can overcome various accounting activities such as fixed assets, receivable accounts, payable accounts, taxes and so forth. Want to know more about our accounting software? Immediately contact us at (021) 53675015 or email us at sales@8thinktank.com.