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ACCOUTING TIPS FOR SME'S

Accounting and Business Consultants

2 Feb 2023

ACCOUNTING TIPS

Bookkeeping is an essential aspect of running a small business, as it helps to track financial transactions and provide financial information for decision making and tax purposes. Here are some tips for small business owners to help them keep accurate and efficient bookkeeping records:

1. Choose a bookkeeping method that works for your business. Some popular methods include cash basis, accrual basis, and single-entry bookkeeping.

2. Separate business and personal finances. This will help you keep your records organized and make it easier to track business expenses.

3. Keep accurate records of all financial transactions, including income and expenses, using a software or bookkeeping system.

4. Keep all of your receipts and invoices, and organize them in a way that makes them easy to access.

5. Make sure to keep track of all accounts payable and accounts receivable, so that you can stay on top of your business's financial health.

6. Reconcile your accounts regularly, such as bank statements and credit card statements, to ensure that all transactions are accurately recorded.

7. Prepare a budget and monitor it regularly, this will help you to know your expected income and expenses, and the financial health of your business.

8. Use financial reports and statements such as balance sheets and income statements, to review your financial performance, and help to make decisions for your business.

9. Hire a professional accountant to help you with your bookkeeping and tax compliance as your business grows, this can save you time and money in the long run.

10. Take advantage of online bookkeeping software and apps, which can automate many tedious tasks associated with bookkeeping, such as generating invoices and tracking expenses.

11. Keep all financial records and documents for at least 7 years, this is the standard recommended by tax authorities.

12. Communicate regularly with your accountant and other financial professionals to stay informed about changes in tax laws and regulations, and to get advice on how to handle specific financial situations.

13. Stay organized, by creating a system for filing and keeping all records of financial transactions in one place.

14. Be consistent, by establishing a regular bookkeeping routine, it will make the process less time-consuming and error-prone.

15. Understand the laws and regulations that apply to your business, such as sales tax, payroll taxes and filing deadlines, to ensure that you remain in compliance with the law.

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