3 Important BookKeeping Tips – Victoria Park Accountant Explains

No matter how big or how small a business is, it is fair to say that bookkeeping is very much the heartbeat of them all.

And, while no doubt that for many, the term bookkeeping can be a little intimidating and confusing, getting the books right is crucial.

In fact, with so many available tools and platforms, book-keeping has never been easier.

As accountants, a big part of the job is helping businesses set up platforms and tools. As a result, we get to meet many businesses owners whom a looking for the best place to start.

So, today we are looking at a number of tips when it comes to business and bookkeeping.

 Need vs Want

When it comes to bookkeeping, it all starts with what will be the best fit for the business. As we mentioned, the goal of bookkeeping is to make life easier and to help a business run smoothly.

That said, when it comes to platforms and strategies, a business owner needs to ask themselves, what is it that needs to be done.  

If the goal is to manage invoices, collect payments, track numbers and keep the records organised thats great. A cloud based accounting software like QuickBooks or Xero could work great.

Of course, these are only two example. As mentioned, there may be a difference between what one wants and what is needed.

So, the first thing that business owners really need to understand is the actual ability and functions they want the system to do.

Once that is clear, it is probably worth talking to a professional accountant.

It is common they will be able to make a number of suggestions that will benefit the business, short and long term.

Ownership and Accountability

If one thing is certain it is the fact that when it comes to the business bookkeeping there needs to be someone in charge.

Meaning, it is crucial that a business has one person who handles, changes, and is in full control of the system.

Why?

Well, imagine a business where every piece of data, every number, and every detail has an impact on the end result.

If more than one or maximum of two people are handling the system, accountability is lost. And with that, in many cases so is the truth.

By truth meaning, all it takes is for a wrong detail to be placed in the system.

One wrong detail can have a major negative impact on the business.

So, before deciding on the system the business will use, it is crucial to decide who will be in charge of it.

All that said, while it is encouraged that one person is accountable for the system, having others in the business that learn it is important.

Just in-case that original person handling either leaves the company. Or in a case of another emergency, somebody is required to control the system.

Having a backup person is always a good idea.

Do or don’t

Probably one of the worst things that a business can do is have a system in place but not use it properly.

Meaning, it either doesn’t get used right or not frequently enough.

This can cause a number of issues within the business.

So, when we say do or don’t, it is clear that every business needs some type of system.

but, if you are implementing one, it needs to be used properly.

Last but not least, having all the information and understanding is crucial.

Business owners have a business to run and while book-keeping should not take up too much of their time, having a system in place is crucial. The advice is to always either chat to an accountant or a book-keeper with experience.

Finding an expert to chat to who can advise on the best cause of action is ideal.

For any further information regarding bookkeeping or accounting for businesses, contact us at Eventum Consulting.