Essential bookkeeping practices to support your small business
The start-up boom in India is flourishing like never before. And the number of small business owners in the country is also rising. According to Forbes India, there are 40 million small business owners here.
So are you one among them? That means you are supposed to be a jack of all trades! A small business owner has to oversee different aspects of the business, and mostly all alone. And financials and accounting becomes a daunting task, if you have no experience or learning in the domain.
Hiring the service of an expert would be a costly affair. So what’s the way out? All you need to do is be organised. It’s no rocket science that you need to tackle with. To help you out, here’re the essential bookkeeping practices to support your small business.
Start from Day 1
Yes, it’s a difficult task. But it cannot be ignored. So, start recording your expenses and initiate a process from the very start of your business. Accuracy in your bookkeeping activities will help in the long run.
Set up a Process
First and foremost, set up a process for the financial payments and for recording it. Have a weekly review of the finances, and have dedicated time for it. Keep record of the deposits. Run after the client payments systematically. Do not prolong any of the tasks as it gets hectic only when it is delayed.
Bookkeeping has become far easier with super-smart softwares to help you manage your finances. Invest in a software after analysing your requirements with regards to the features.
Keep Track of your Expense
Be it a coffee shop bill where you had a client meeting or the fuel expense to go there, keep track of where you have spent money. But keep your personal and official accounts separate. Make your accounts clear for the business.
Don’t Delay the Invoices
If your invoices are not getting cleared at the right times, the cash flow will be majorly hurt. So, do not let your clients take a longer period for clearing the invoices. Set deadlines for the payments for each client and follow it up at the right times. Let not your money stay with them for long!
Thus, being organised is your foremost step to successful financial management.