1 Record Transactions As Soon As They Occur
This will keep your books updated, showing you your exact financial stance instead of having an "idea" of where your business is financially.
2 Track Loans & Exchanges Between You and the Business
As a small business owner, you will often lend money to your business or borrow money from your business. Be sure to record those monies - investments and withdrawals, in the books.
3 Track Reimbursable Expenses
As a small business owner, sometimes you use your personal funds to pay business expenses. These monies should be reimbursed to you as well as recorded in the company's expenses to keep track of these reimbursements.
4 Use Credit/Debit Cards Instead of Cash
Cash makes it harder to keep track of spending. Misplaced receipts, and forgetting to document purchases can all be avoided if cheques or debit/credit card payments are made instead.
5 Keep Detailed Records of Invoices and Receipts
Documenting every transaction meticulously aids in accurate record-keeping and can be invaluable during audits or tax filings.
6 Reconcile all Business Bank, Credit Card and Loan accounts every month
Reconciliation is a fundamental aspect of bookkeeping. Not only will you be able to catch any mishaps that occur, but it will also spread your workload and keep your books up-to-date and accurate.
7 Invoice Customers on Time
The sooner you bill your customers, the sooner you will get paid, and that will also help keep your cash flow up and your budget on track. Don't delay invoicing your customers.
8 Monitor Cash Flow Regularly
Cash is King for any business, and the lack of it is the reason so many small businesses fail. Know how much it takes to keep your business running on a monthly basis.
9 Regularly Review Your Financial Statements
Make it a habit to review your Profit & Loss statements, Balance Sheets, and Cash Flow statements. This helps in identifying trends, managing budgets, and spotting financial discrepancies early on.
10 Let Payroll Specialists Handle Your Payroll
Payroll and payroll taxes can be complicated/intricate and not only do you need to ensure your employee's paycheques are precise, but you must also make correct payroll deposits and file accurate taxes. Payroll companies will often remit your source deductions to CRA on your behalf, ensuring that you never fall behind or send incorrect amounts.
11 Plan for Taxes Ahead of Time
Set aside a portion of your earnings for taxes and stay ahead of tax deadlines and regulations. Consider working with a professional to ensure compliance and optimization of tax benefits.
12 Invest in Professional Help
Don't hesitate to consult with a professional bookkeeper or accountant for financial tasks or advice. Their expertise can save you from costly mistakes.
