Bookkeeping is a task known to every business. I will be sharing some tips that we practice here at Andy’s Glass to ensure the process is running smoothly daily.
- Keeping your bookkeeping updated is key! To some, the idea of accounting and bookkeeping can be intimidating or, just outright boring! You can always hire an expert to handle it for you. This person will have the time and dedication to keeping all information up to date which will allow the business owner to make the right decisions with a foundation in the numbers. Remember, any decision without the data is really, just a guess.
- Save time and money during tax season by staying ahead of the game. If you own a business, you must do taxes, that’s not a choice. What is a choice is making April a stressful time by ignoring your accounting throughout the year and rushing to get it all done before the deadline. We suggest keeping your books updated for tax purposes at least once a month. By paying monthly or even quarterly estimated taxes this will avoid the big one-time payment in April.
- Know your business- you are not a banker. Sending out invoices is only part of the battle. These invoices also need to get paid. Your business is not a charity and in order for it to succeed you have to collect on any job that is completed. An A/R aging report is a great tool to utilize which will tell you how you are doing on the collections side. We are fortunate to have great customers in the valley that pay for a job well done. But remember, following up is key!
- Keep your relationships with vendors strong! As mentioned above, you probably wouldn’t like a customer or company to take too long to pay you, give your vendors the same courtesy. You’re A/P aging report will tell you who you owe and when bills are due. This should keep you from missing any due dates which will only lead to soured relationships and late fees. This will not go unnoticed and some vendors might even give you early pay discounts, that’s a win-win!