Are you worried about catching up on your bookkeeping as the year comes to an end? If it’s any consolation, you are not the only one. You’re supposed to update your books consistently throughout the year, but few small businesses and individuals actually do that. Still, you can catch up in time if you’re smart about it.
Remote Quality Bookkeeping is a nationally leading outsourced bookkeeping company in the US that routinely helps businesses with bookkeeping at competitive rates. We’re also a Xero-certified bookkeeper, making our services highly reliable, secure, and convenient. Here’s how to catch up on your bookkeeping.
Get Your Receipts In Order
Error-free bookkeeping starts with proper order. Get all your receipts and invoices in one place. Access your customer accounts and ensure you have all the receipts for the payments made in the current tax year. If a customer hasn’t paid for a service, you can record it as a bad debt expense. Do collect all the receipts from other businesses, service providers, and vendors from which your business made purchases. Review your records and make sure you’ve paid them.
Compare Records With Bank Transactions
There may be errors in your company’s or the bank’s records. One way to identify these errors is to compare all the transactions in your accounting record with the corresponding transactions on your bank statement. If there’s an inconsistency, identify the source of the error and get the right numbers immediately.
If these inconsistencies get passed, your bookkeeper will have to spend more time locating and fixing the errors. This can cost you a lot. Nip the problem in the bud by finding and fixing errors beforehand.
Separate Personal Transactions From Business Transactions
You must always keep your personal transactions separate from your business expenses, or you may get in trouble and be liable for your business’s debts. It’s even more important to keep your business and personal record separate if your business is a Limited Liability Company.
Your business is a legal entity separate from yours. You should not pay for your business expenses, and your business shouldn’t pay for yours. The only way you should use your business to pay for your experiences is through your salary. Separate your personal and business expenses to avoid these and other problems.
Outsource To a Professional Bookkeeping Firm
If you get overwhelmed by bookkeeping tasks or if tax laws puzzle you, outsource to a cost-effective bookkeeping firm instead!
At Remote Quality Bookkeeping, we offer highly secure and convenient, and professional bookkeeping services to small and medium-sized businesses. We also offer forensic bookkeeping services to identify financial reporting misconduct and payroll outsourcing for accountants to make life easier.
Want to catch up on bookkeeping for this year cost-effectively? Get in touch now!