5 Tips to keep your bookkeeping in tow

5 Tips to keep your bookkeeping in tow

Bookkeeping is super important in keeping your business’ financial health in check. It’s the function of recording all your company’s expenses and all money coming in.

Here are five tips to keep a good record of your business’ finances:

1. Keep personal and business figures separate: When you start a business, you need to keep the figures separate. This doesn’t mean you won’t ever have to put money into your business, but this must recorded and any money you take out of the business should also be recorded. It’s important to structure your salary, so that you don’t just take money as you need it, because this is the quickest way to lose track of where money goes.
2. Tax savings: If you don’t record all your expenses, how are you going to be able to claim for them from tax? Likewise, if you don’t record all your income, you could end up paying penalties that could put your business on the back-foot.
3. Audit-proof: If you keep good records and your books in order, SARS can walk in any day to do an audit and you won’t have to worry. SARS is starting to audit more and more companies to make sure everyone is paying their taxes.
4. Stress-free! This alone is worth keeping accurate records. You know exactly where your business is at, where you need to get it to and there is no guesswork or trying to remember numbers etc. You will be able to make better business decisions because you will know how much you can afford to pay for more equipment etc.
5. It doesn’t have to cost you a lot: You don’t have to pay a full-time salary in order to keep your business records in order. Why not employ an accounts student for two to three hours per week to do this for you. Just be sure to check their work.

Think of bookkeeping as a promise to yourself so that your business can do well. If you keep on top of your numbers, your head will be in the right place when it comes to thinking of ways to make more money.