Time is money. As a small business owner, you’re probably short on both. Keenans Accounting Service has put together some tips to help stretch your bookkeeping budget.
- Keep your business and personal banking separate.
It’s hard enough keeping good records for a business, but factor in personal expenses and it can be a bookkeeping nightmare. More time for the bookkeeper sorting through what’s what means more money out of your pocket.
- Don’t use cash.
Cash has a habit of disappearing without a trace. Whether it be a coffee at the local Timmie’s, a small donation to the youth hockey team outside of Canadian Tire, or picking up a bottle of wine to go with dinner, cash slips through our fingers with little to no trace. Using (business designated) debit or credit cards comes with its own paper trail, making your job, and your bookkeeper’s job, faster, easier and therefore more cost effective.
Whatever your system is, use it. Separate your expenses by date and by statements. When you get a receipt, deal with it immediately. Some clients like receipt spikes. It’s a great stress relief to impale little pieces of paper on a metal stick. You can find them on Amazon for less than $5. Other people prefer file folders, or excel spreadsheets. It doesn’t matter how you do it, what matters is how much time it will save down the road when you hand things off to your bookkeeper.
- Get close to your bookkeeper.
Bookkeepers are on your side. We’re here to help your business succeed. If you can commit to sending us your paperwork monthly (preferably), or even quarterly as opposed to only at tax time, we can keep your books in good economic standing and provide valuable information that can help guide your financial decisions. When you keep your bookkeeper up to date with your finances on a regular basis, it means less work overall, possible savings and beneficial insight.
- Prepare to pay tax.
The taxman is unavoidable, but with a little preparation, you can lessen the financial impact. Set aside 25 – 35% of your earnings for the taxman. A savings bank account is a great place to store this nest egg. Every time an invoice is paid, transfer about 30% of it to your other account. Leave it there. Let it sit until it’s time to pay.
Investing in a bookkeeper can be a big decision, especially if you’re just starting out in business. They become a partner in your financial success. Hopefully, with these tips, you can find the right balance between saving money and spending it when you’re ready to invest in a professional bookkeeper.