Here’s How You Can Make Bookkeeping Less Stressful

January is by far the busiest month of the financial year because this is the time when financial records need to be recreated and reassessed. For business owners, the idea of checking financial records and identifying areas for improvement can be a challenging task. Suffice it to say, it is a stressful event that makes bookkeeping the most dreaded task for a business owner. It is easy to get side tracked with other obligations but allowing bookkeeping to take a backseat can have a negative effect on the overall outcome of your business. Instead of hoping for the best, you are only increasing the chances of taking a turn for the worse.

How to avoid bookkeeping stress?

1.    Create a folder for your expenses – For business owners who are busy attending to various transactions, throwing all receipts and folders into one folder is the easiest way to take care of financial activities. However, when you need to retrieve specific receipts, you will have difficulties getting the right information because you got the invoices mixed up. When you make it a habit to compile essential information by creating an expenses folder, not only will you speed up the process but also have enough time for carrying out other tasks.

2.    Set up a bookkeeping system – These days, it is easy to store bookkeeping information with the use of bookkeeping system in the form of a software program. You reduce the chances of duplicating entry of information and you automatically capture the details you need. There are various software programs for you to choose from and the program you choose will greatly depend on your bookkeeping needs.

3.    Update your system on a regular basis – It is not enough that you have set up a system as you also need to update it on a regular basis. However, this does not mean you should do it every day. It depends on how frequent you need your system updated. Some owners update the system every month, while others update it on a quarterly basis. Make sure all information is captured because you will need them in the future.

4.    Capture information as soon as you have them – It is easy to overlook some things that are going to be essential to your business if you are only focusing on big expenses. If you have used your personal card for business transactions as you have not brought your business credit card, it does not necessarily mean that you are going to skip liquidating your expenses. While the amount may seem small it can still add up causing you to lose track of your business expenses.

Bookkeeping need not be stressful if you know how to organise essential information for recreating financial records. Even if it is the busiest month of the financial year, you can still maintain a steady pace with these best practices. Once you follow these practices, you will begin to notice that your day-to-day task becomes easier and faster. It is important that you keep your system organised so you can make bookkeeping less daunting.

Andrew Donnelly

Written by : Andrew Donnelly

Andrew Donnelly is a degree qualified accountant and registered tax agent. He is the principal of Brisbane Bookkeepers, which provides bookkeeping services to small businesses in Brisbane and its immediate surrounds.

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­ Questions? Give Andrew a call 0450 605 592