Bookkeeping is not something that you can put up for later. Usually, this is how some small business owners think about it. They don’t give bookkeeping the importance and the priority that it deserves. They only think about it at the last minute, when they desperately need their books. Although it doesn’t apply to all the business owners, a good majority still believes that it is best to deal with their finances when things start to get out of hand on the accounting side.
On the other hand, some business owners never take their company’s bookkeeping for granted but still fail to maintain good order. This is not because of the lack of accounting skills or experience. It doesn’t have to do anything with any of the traits of business owners. In fact, you may also see some finance experts making mistakes when it comes to their own business’s bookkeeping. At GTA Professional accounting, we know and understand how hard it can become for small business owners to catch up on their bookkeeping. Therefore, we provide a reliable and easy-to-manage bookkeeping service in Mississauga.
Those who think it is already too late to hire an accounting firm to catch up on their bookkeeping can rest assured now having GTA Professional Accounting service available in Mississauga.
Here are some quick tips on how to catch up on your bookkeeping if you want to do it on your own.
1. Bring Together All Your Invoices & Receipts
The first step is quite time-consuming and takes some serious amount of effort. You need to gather all your invoices, receipts, records, and other documents that may have some financial data. It includes customer invoices, debt collections, business expenses, and vendor accounts, among others. The more intricate your business is, the more items there will be on this list. You want it all in one place. Bringing it all together will give you a clear picture of your business’s current financial status. It would also indicate how much more work you have to do before the commencement of external audits and other taxation procedures.
2. Make use of Technology
Obviously, a lot of businesses are already doing that to keep it paperless and efficient. But as hard you try, some percentage of paperwork still remains. What you need to do with that paperwork is to timely record it in your system such as QuickBooks. Or you can make a separate file to collect those important hard copy documents to be fed into the system at the end of the day or the week. Wait for more than a week, and it all goes out of order again. This is why taking care of all the receipts right now is very important.
3. Bank Accounts’ Reconciliation
The general ledger of your business should always be consistent and accurate. Any business owner looking forward to maintaining their bookkeeping once and for all needs to ensure the reconciliation of their bank accounts. Not only does it provide a sense of security, but also you can keep yourself updated with the financial pace of your business.
No matter how far behind you are in maintaining your books, it is always better to start immediately. Business owners can often be overwhelmed with all the catching up they have to do before a tax year. This is where professional bookkeeping firms play an essential role.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.