Starting a business is in itself very engaging, and areas like product development, fundraising, marketing, are the prime concern of any entrepreneur, and naturally, accounting gets left behind. Without keeping accurate records of the financial transactions that are taking place in your business, you might face severe financial issues. Everything from paying taxes to making smart decisions for your company depends on having accurate books and can't be ignored. This article talks about how maintaining records of Bookkeeping is important for every startup.
What is Bookkeeping?
Bookkeeping is an official data which records financial transactions that include, sales, purchases, receipts, and payments by a person or an organization/corporation.
Checklist for Bookkeeping
- Record All Transactions: Every financial transaction must be recorded into your Bookkeeping Software or Excel Spreadsheet
- Categorize Your Transactions: Categorize separately on your tax return, so the category entered during transactions are securely registered and always do it in a fresh mind.
- File or Digitize Receipts: It is suggested to file your receipts and old invoices weekly. However, digital bookkeeping systems also depend on being accurate and clear. You can also hire bookkeeping services to help you out.
- Mitigate Your Bank Accounts: Bank mitigations can be tricky until you get used to with it, small businesses with more than one employee or looking to apply for a loan should also use double-entry bookkeeping. By this way, you can keep track of the financial situation of a company its rapid growth.
- Prepare and Send Invoices: Be prepared about sending invoices as soon as you can. Maintain accurate records of your work.
- Pay Vendors and Other Bills: Pay the vendors on time enter the bills into the accounting system and prepare the checks for paying the bills. As late payments could also impact your business credit score.
- Review Outstanding Invoices: Always review and see who hasn't paid you yet, and follow-up. A simple accounts receivable process is the source of your cash flow.
- Review Your Financial Standing: Analyzing how much cash you have in the bank, and how much cash you expect to arrive always keep an eye on it make changes accordingly.
- Hold Regular Meetings: If you are a small startup, these meetings could only be with yourself. But always have the financial meetings regularly with anyone who might have information on how the money side of the process could be streamlined.
- Work with A Pro: Be educated in the world of accounting, you will require to be a pro on your side right from the beginning.
How can we help you?
We suggest that you assign us, some of your dedicated time for managing your business's financials. Tracking good records also means that your life will be simpler when it comes to quarterly and annual income taxes for your business. Online Legal India™can help you maintain your Bookkeeping records. We have 10+ years of CA/CS who will be dedicated to guiding you accordingly and in a very short time.