Bookkeeping

Seven Bookkeeping Tips to Save Time and Money

If you’re a bookkeeper, chances are you’ve wondered how to save you and your client both time and money. Often times there are a few different steps you can take to reduce the time you’re spending, which makes your client happy and reduces everyone’s general stress level!

Use accounting software, keep track of receipts, separate accounts and use your CPA

Quality accounting software, such as QuickBooks, can be an enormous time saver for any bookkeeper. It makes keeping track of cash flow, both in and out, reconciling bank statements and creating custom reports a breeze. There are classes out there that you can take to help become more familiar with the software and how to best use it for your small business client. Taking one is highly recommended. You can also train family members (if you own your small business with family) or even hire a college student intern to learn the software as well. It’s always good to have a backup in case of emergency or vacation. It’s also best to work closely with your CPA (you should be in contact at least twice yearly). They can advise you how to best make use of your money by looking at your bookkeeper software reports and seeing what the trends are. Make sure you’re scanning all appropriate receipts from purchases, business cards for client accounts and any other applicable paperwork directly into the system to keep everything in one place. Also keep your personal and business account separate to minimize confusion and stress.

Avoid cash, go paperless and keep track of your mileage

Another tip for bookkeepers to pass on to their clients is to avoid cash. Debit and credit card purchases can be tracked much easier than purchases that are used with cash. Don’t lose potential write offs to this rookie mistake! If you do need to use cash, write the reason why on your ATM receipt so you can still itemize. Another thing to consider long term is a fireproof safe or offsite storage up the required six years of documents, per the IRS. Don’t get caught in audit without the appropriate documentation. For things like tracking mileage, consider the use of GPS related software to take the hassle out of manually logging miles driven. This can be a huge help in the long run, plus proof in the event of an audit by the IRS. Doing those seemingly simple things can make your life as a bookkeeper significantly easier by increasing the amount of paper trail available for both you, your client and the IRS in general. Pass these tips along to your client, send out a memo and get everybody in on the new rules!

There are many tips and tricks of the bookkeeper trade that you can apply to help save time and money for your client and yourself.  Consider trying to avoid cash, using GPS software and purchasing a quality software program, among other tips! Please check out www.bookkeeper.com.au for additional tips and information.