Are you tired of payroll induced headaches and of never being able to find receipts when you need them?
When it comes to running a small business, the key to success lies in airtight record keeping. If your business’s financial documents are in shambles and you aren’t sure where to start, don’t panic. We’re here to help.
Here’s everything you need to know about record-keeping for a small business.
When it comes to record-keeping for a small business, document management and organization are key. So, if you want to get a handle on your business’s financial situation, you need to make sure you implement a system of organization.
Start with the Right Software
Thanks to modern technology, the book-keeping methods of today have very little to do with actual books.
With current accounting and record-keeping software, you can generate and manage financial documents with ease. But only if you’re using the right one.
While there’s plenty of fantastic accounting and payroll software on the market, there are a few features that are must-haves. First and foremost, the accounting software you choose for your business should come with the ability to generate records.
Good book-keeping is all about collecting evidence. So, it doesn’t matter if you’re looking for software that comes with a pay stub template or one that handles automatic payments. You need to make sure you pick something that can help you generate documentation.
Better Bank Reconciliations
Monthly bank reconciliations are essential to making sure you’re keeping your small business on the up and up when it comes to your finances. These simple checks can help you catch any discrepancies and errors while allowing you to track your business’s financial standing. That said, bank reconciliations only work if your willing to put in the time.
The first rule of book-keeping is to keep and maintain copies of every document related to every transaction your business handles. During bank reconciliations, you should take the time to double-check both you and your accounting software’s work by pairing the necessary receipts, contracts, and other documents to every transaction you check.
Hold On to Your Records
Finally, as a small business owner, there’s a good chance you’ve asked the question, “how long am I supposed to hang onto financial documents anyway?”
Fortunately, the answer to this query is pretty simple: until the end of time — or around seven years.
Hanging onto financial documents may seem annoying and pointless, but you must keep in mind that these records serve a purpose; that is to protect you and your business.
That said, while you should keep copies of all your financial documents, that doesn’t mean you have to keep the original paper documents. Digital copies are not as difficult to store and organize and are just as effective as traditional paper documents.
Record-Keeping for a Small Business 101
Now that you know a little more about record-keeping for a small business, it’s time to get back to work!
Are you looking for more advice on how to run a successful small business? We’ve got you covered. Check out the rest of our blog for more helpful articles today.