7 Tips for Keeping Your Accounting Organized

Learn how to keep your accounting organized. Image: Flickr
Learn how to keep your accounting organized. Image: Flickr

The lifeblood of any business whether small or large is financial integrity. Therefore, the efficient management of your business accounting can help establish your success.

Keeping your accounting and finances in order should be an achievable goal. You’ll not only save time but also money.

Bear in mind that organizing your accounting takes effort and time. Furthermore, you require a solid plan. Nevertheless, these invaluable tips will help you maintain efficiency.

1. Separate Your Business and Personal Finances

Numerous small business proprietors have a hard time separating their business and personal finances. In fact, most tend to commingle accounts, particularly when they’re just starting out.

It’s important to note that mixing your private and business transactions is a recipe for disaster. It’s important you open different credit cards and checking accounts for your business to maintain separate finances.

If you don’t separate your finances, you won’t have a clear picture of your business’s economic health. Furthermore, you could end up wasting time going through bank records trying to establish the deductible expenses during tax season.

Separation of funds may also provide protections and will make it easier when you sell the business (tax reasons, establishing valuation, etc). You’ll also discover that opening a business account is very affordable these days, so there’s no excuse.

2. Track all Transactions

Tracking your cash is crucial to identifying your financial status. Numerous small businesses adopt a simple cash technique to perform bookkeeping. You should record all business transactions.

This implies that you should take note every time money enters or leaves your business. Consider scheduling a weekly appointment to organize and review your business finances.

Make sure you don’t omit this phase in your bookkeeping. This will make it easier when reconciling your books at the end of the year.

3. Use Accounting Software

Accounting software can allow you to track your business’s transactions easily. Although you may consider a ledger to track your expenses and income, these days you can access various affordable and high quality software options.

Instead of trying to save some money by performing this task manually, software is preferable since it’s easier, quicker, and more precise than paper and pen.

Additionally, software maintains your records in one place rather than scattered around the office. Some companies will deposit and file taxes for you, thereby decreasing the likelihood of accounting errors in your books. It’s important you seek a user-friendly software that offers excellent customer support.

4. Hire a Professional Accountant

Not everybody needs to engage professional services. However, you may discover that your business and personal tax situation demands professional assistance.

A good professional can help you discover ways to capitalize on business deductions and find other means of maximizing your return.

An accountant will further help you calculate estimated and self-employment taxes, both of which are necessary for small businesses. A good accountant should stand by his or her work and provide assistance if you’re ever subjected to an audit. You’ll discover that outsourcing the task frees your time for important tasks.

5. Organize Your Paperwork and Digitize

Ensure you keep your business paperwork in an orderly manner. These days, you can scan the paperwork and store it electronically on your accounting software or a simple filing system. It’s important you maintain a separate e-folder for each year and month.

6. Adopt a System for Accounts Receivable

Always ensure you implement a system for recording whether your clients have paid your accounts receivable. It’s equally important to track the unpaid debts, so you can follow up promptly.

7. Review Your Books Often

Successful businesses have a clear understanding of their monetary picture and constantly plan. It’s important you examine your finances frequently and avoid organizing last minute.

Final Thoughts

Organizing your accounting will save you money and time while making your business more successful. Perhaps even more important, it will be less stressful.

Dailey Bookkeeping Services is a Xero Certified SILVER Partner and a QuickBooks Online Certified Advisor, so if we can help you with your accounting needs, just give us a call, we would love to help you!  The owner, Jacqueline Dailey is a Certified Public Bookkeeper, an Advanced Certified QuickBooks and QuickBooks Online ProAdvisor, a Sleeter Group Certified QuickBooks Consultant and a Xero Certified Silver Partner. We work remotely so we can work with any company located in the U.S. If we can help you with this process or provide you with custom reporting, please give us a call. If we cannot help you, we will refer you to someone who can!  Feel free to visit our website at http://www.daileybookkeeping.com.

40 thoughts on “7 Tips for Keeping Your Accounting Organized

  1. I agree with the point you made ab out the importance of making sure that all accounting is in order and achievable. It’s comforting to know that when these things are done, money is saved and life is a bit more stress free. Since I don’t know a ton about this yet, I think my best bet will be to talk to an accountant and see where I am and what goals I can set to get my finances in order.

  2. Wow great tips for organizing my account.Tracking all transactions regularly and using software has made my organizing work much easier.Happy to find such a precious article.Thanks for sharing!

  3. Keeping accounting organized is the most complicated thing for me. I always find it overwhelming, however, somehow every time I organize everything quite perfect. These 7 tips will hopefully help me enjoy bookkeeping work at some point.

  4. This article completely answers my question, I am searching for working at home. Nevertheless, bookkeeping is drudgery for me but I do believe that I can do it by the guidance of these tips.

  5. Great tips, I think that every business owner should get to grips with some form of bookkeeping software, there’s plenty of free ones available and they don’t take too long to get used to. They make things so much easier, otherwise you just spend hours on end getting lost and confused in your finances!

    1. Hi Oliver,

      I agree! There is so much knowledge that you can gain by keeping track of your financials! I see you do bookkeeping services too – good for you! Thanks for the comment!

  6. A good accountant can usually draw out the relevant information with some basic questions, but the more effort spent on the basics, the less time you have to get what you actually came for: an informed opinion on how you did with your finances from a tax perspective and advice on how to minimize your taxes going forward.

  7. Nice post. These tips will be useful for me. I do not have much idea about these accounting and all. Thanks for sharing this informative post.This information will be beneficial for many people.

  8. Even if it seems redundant and there is electronic evidence, it’s ideal to have paper copies as well just for safe measure.

  9. multiple savings accounts works out so well for me. I have my regular emergency fund set aside, and then I am currently saving for a house which I have another savings account for. Having savings set aside is important, so a good budget is key. Thanks for sharing.

  10. Nice post. These tips will be useful for me. I do not have much idea about these accounting and all. Thanks for sharing

  11. My sister is thinking about starting her own business soon. So, I liked that you pointed out that she should be organized her paperwork well. It might be smart for her to hire a professional accountant to help her keep on track of her expensive and handle the organization.

    1. Hi Penelope – People that start a new business sometimes cannot afford to hire someone right away. I would suggest that they at least contact a company that will help them to set up their books properly and give them some training on what they need to do on a daily basis to keep it up. I have alot of new companies contact me that I do this with. Then when they start to become profitable they will then contact me to take over doing their books. But if they can at least start with a good file setup,use a software where the bank feeds in the transactions, and enter some of the daily transactions, they are off to a good start!

  12. Thanks for pointing out that you should consider digitizing paperwork. It is good to know that it will help make filing and using software a lot easier. That does seem like a good thing to know when you need to start a business.

  13. I think that it’s a great idea to hire a professional accountant to do your finances when you’re unfamiliar with anything. I will have to do it for my future taxes.

  14. Outstanding list to keep your accounting organized! Yes, “Use Accounting Software” is a great way to solve everything easily when you have no time to work. By the way, I appreciate your research work on this topic. Please carry on!

  15. You give 7 tips about accounting and that is helpful for me. Because in my business that kind of tips is very useful. so that for sharing that kind of article.

  16. You make a good point that sometime you may find that your business and personal tax situation needs professional assistance. My sister is in that exact situation, and she is finding that she isn’t able to keep up with her accounting anymore. I will be sure to tell her about this, so that she can know to hire someone for the position.

  17. Thanks for pointing out that a good professional can help you discover ways to capitalize on business deductions and find other means of maximizing your return. I think that it would be smart to have a good accountant every time of the year, but I think it would be especially smart to look for one or for a tax service in your area around the time that taxes were due. I think that would help make sure that your business got all the right deductions and that things were just more organized and efficient in general which would be helpful to a business.

  18. Finding a good accountant who can double as a bookkeeper or consultant is a huge benefit to any business owner. The returns you can reap definitely make the cost worth it. Thanks for sharing this advice!

  19. It makes sense that you should convert paperwork into a digital format for easy access. My uncle wants to start a business but struggles with keeping things organized. I think that a bookkeeping service might be able to help him stay on track.

  20. Agreed! Small business should consider separating their personal and business finances. Very well said that this is important to have an organized business economic health and this can provide protection. Thanks for sharing this.

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