Are you hoping to be more profitable and efficient in 2019? Good bookkeeping habits can go a long way toward helping you achieve your goals.
I will not mix business and personal bank accounts.
It’s all too easy to pull out the business credit card for personal expenses, or vice versa. However, this creates an accounting nightmare in which profits and losses can’t be tracked and filing your tax return is way too complicated. The long-term hassles far outweigh the short-term convenience. If you need to take money out of the business, do it as a bank transfer of salary.
I will update financial information every week.
Keep the bookkeeping tasks small and manageable by doing them at frequent intervals. Waiting until the end of the month puts you under a big burden of playing catch-up, especially when it’s harder to remember what happened 3 weeks ago than 3 days ago. That’s why Xendoo provides weekly bookkeeping, to keep you ahead, all month.
I will make a budget.
With complete, up-to-date financial information in hand, you can create a budget based on actual data, rather than guesstimating.
I will compare budget to actual every month.
No matter how accurate your budget was when you made it, conditions are constantly changing. See how your business is really doing by comparing actual income and expenses against what the budget projected them to be on a regular basis. This puts you in a position to make adjustments and nip any problems in the bud.
I will find a financial system that really works for my business.
Your system should make your work life easier, not harder. It should integrate easily with your business management system, eliminate duplication of effort, prevent errors, automate routine tasks, and be available when and where you need it, to mention just a few of the criteria most small business owners want.
Xendoo’s bookkeeping teams and cloud-based software provides small business owners with digital reconciliation of bank transactions, online invoices, monthly P&L statements, 24/7/365 access to your financials on your smartphone and much more. It sets you free to do what you really love: keep your business growing in 2019 and beyond.