Unless you’re a bookkeeper, you probably don’t like the financial part of running your organization. Unfortunately, it’s necessary to stay in good business health and out of tax trouble.
As a necessary evil, make your bookkeeping as simple as possible with the highest efficiency.
First, choose the right software.
Choose something that fits your needs and is easy to grasp. This can be Excel, QuickBooks or Wave Accounting. The benefit of a proper software system is that you can connect your banking account to it, making reconciliation easier.
Second, do your bookkeeping every week.
It will cost you only a small amount of time to reconcile receipts, bill your clients and pay vendors. Benefit: you stay up-to-date at all times. It’s a stress-free feeling to know you have no debts!
Third, make a simple monthly report.
Know your income, expenses, and profit (or loss). Understanding what recurring costs you have, helps you to divide your income up and get a feel of your cash flow. Learning about the type of income you learn more about what services are more successful than with a marketing plan.
Four, set money aside for taxes.
Annually, you need to prepare your taxes. Prevent having to pay a large sum from your profit and feeling it directly in your pocket by keeping a monthly eye on the HST you charge and get paid.