Bookkeeping can be an overwhelming task, but there is a proper solution for your business’s unique needs. Most importantly you need to feel confident in your company’s bookkeeping and that you are compliant. Equally important is keeping accurate records of your monthly transactions.
Forecasting and Cash Flow
Start a Cash Flow which tracks your income and expenditure. As a result you will be able to know where your business is going. Set up a financial forecast or budget. Track your monthly progress against the budget. This should be a key part of your bookkeeping process. Good bookkeeping is not just about what you’ve done, it should help you to know where your business is going.
Separate transactions
Keep your personal and business transactions separate. If you need to use business money for personal expenses, just do a bulk transfer to your personal account on a regular basis. If you are making use of a outsourced bookkeeper it is important that the bookkeeper isn’t having to deal with a tons of small personal transactions and making you pay for their time.
Keep up to date
No matter where you are in your business’ journey, immediate access to critical information like cash flow forecasts. Consequently, this will give you insight on outstanding accounts receivable and accounts payable. Furthermore this will allow you to make smarter choices about how to grow your business.
Open a Savings Account
Also, open a business savings account and set aside money from your business earnings every month to pay your annual or bi-annual tax. Similarly transfer your VAT (output less input VAT) into a savings account monthly. Besides having the cash available when you need to pay the VAT over to SARS you will also earn interest.
Bank online
It is quicker and easier to login online to make payments and keep up with the bank reconciliations in your bookkeeping.
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