If you run a small business, ten to one when you reach the area of bookkeeping you look at it like it is a Rubik’s Cube of stress, confusion and trouble. Don’t Run from small business bookkeeping solutions!
Many owners run away from it, avoiding it because they don’t want to get caught up in a mishmash of confusing papers, numbers and accounts. Numbers just are not the strong suit they wear.
In truth, it can be as simple or as complicated as you want it to be. Complicated if you choose to leave it until a later day to get into, or simple by hiring outsourced bookkeeping services to keep that pressure away from you.
For Starters – the Bookkeeping
Keeping things simple, bookkeeping is keeping tabs on all of your business financial incomings and outgoings. It is part of accounting but it varies a bit in that bookkeeping is the crucial first step of accounting that centralizes on the recording and organization of all your financial data.
If that last part lost you, don’t worry. What you need to understand is that an accountant’s job is interpreting and presenting that data. How they do that is down to the bookkeeper.
Your bookkeeper supplies an overview of where your money is coming from, where it is going and, crucially, where it could be going wrong for you. Businesses have a lot of transactions, probably more than you realise at first, and if those books are not balanced, your overview can quickly be lost.
Now the Real Stuff
Okay, so now you know where the bookkeeping benefits you, how do you do it?
Well if you have chosen to take the path yourself and tackle it at a later date you have to make sure you handle some certain areas – and don’t worry if you have made a mistake, most small business bookkeeping solutions can work to pull you out of them.
Firstly you have to make sure you have separated your business and personal transactions. Now, many small businesses make the mistake of not separating personal and business bank accounts, and separating both sets of transactions from hundreds is going to be a very hard process. Therefore, be sure to separate them before you do any bookkeeping.
Then you are going to need to prepare your financial reports. You will need to find any documents or bank statements that have any type of business transaction, including PayPal statements, marketplace statements, tax reports – anything related to a business transaction. These documents will need to be prepared as you are going to use them when keeping your books. You can choose to store them electronically to use in accounting software or Excel templates.
Already Looking for a Professional
Okay, we accept that by this point the prospect of doing all of that is instilling a sense of dread, especially if you do it wrong which can be costly.
This is why many businesses opt for bookkeeping services in Manchester to handle all of these areas exclusively, providing great peace of mind and an ability to focus on what matters, the running of your business.
For small business bookkeeping solutions, run towards a professional to work with your numbers whilst you work for your business. Contact the team at Pebbles Bookkeeping today.