4 Smart Bookkeeping Strategies to Implement This Year

This year is really just getting started, which means that you still have plenty of time to implement bookkeeping strategies that will help you keep everything for your business in order.

Keep Separate Records for Payments & Loans

There are multiple ways that your business can get the income that you need to run your business. Some of that money may come from business loans or investments from other individuals. Your other income comes from payments that you get from clients.

These two sources of income, although both can be used to run your business, come from very different sources, which is why you want to keep track of these two income methods separately.

Set up your books so that you have a steady idea of the money that you are actually bringing in from customer payments and from loans and investments. That way, you can see how much money your business is making, not just what your overall cash flow is.

Have a Clear Accounts Receivable Process

AS a business owner, you need to make sure that you are able to bring in the money that is owed to your business. This can be a challenge for any business, which is why you want to have a clear system for collecting on any accounts where you sell on credit.

You need to make sure that you set the payment terms upfront with customers, and get a payment method on file from the start. Then, you need to make sure that you set strict deadlines and penalties for missed payments. Be willing to not work with customers that don't pay your business on time. Paying your business on-time is important for your cash flow, so make sure that you have a system that supports on-time payments.

Plan for Your Taxes

Make sure that you plan for your taxes. At the end of every month, when you do payroll, make sure that you put money into a specific savings account set up just for your taxes. Setting up a savings account just for your taxes is one of the best ways to ensure that you have the money for your taxes that you need to pay each quarter. Don't expect for the money to just appear; make sure that you save for those payments as well.

These accounting tips will help you move forward with running a smoother business. For a better business year, contact services like LCNB National Bank.