Bookkeeping is one of the most crucial parts of a business, and it’s essential to keep a tightly run ship. You have to employ the right strategies and techniques to set yourself up for success and prevent any issues. Here are some things to follow:
Separating Personal and Business Finances
One of the first steps as a business owner you need to make is to set up a different account for your business financial dealings. It’s a common mistake among budding startups and home-based businesses to use the same account, especially when you’re managing all the payments yourself. Setting up a business account will be a great relief in the long run.
Firstly, you won’t run into your funds suddenly depleting and inexplicable yet inevitable cash flow issues. Secondly, the audit and taxation issues from the mixed streams are another headache. There are legal consequences, especially as a limited liability status business.
Setting Internal Control
Setting up proper policies and procedures for bookkeeping can go a long way to preventing fraud if your internal controls are sound. The most common protocol is having two people involved in the process of payments. The check is written by one person, while another person works with the bank, and a third individual will sign the payment.
Regarding internal controls, the person who opens the mail shouldn’t be the same person who is responsible for accounting functions. Splitting responsibilities reduces the chances of fraud while reducing the workload on an individual.
Using Accounting Software
Paper-based bookkeeping is becoming obsolete with time. While it’s always great to have a physical copy of your records, the industry standard now is using a variety of popular software to deal with the task. Not only is it safer thanks to its digital nature, but you also have cloud storage options, and the ability to collaborate and share files on the fly also helps.
You also have several backups of your data along with various in-built tools that you can automate to make your life easier.
Hiring a Professional
Business owners rarely handle the bookkeeping work themselves. The common approach has been to hire bookkeeping services instead, so rather than having to go on an employee hunt altogether, you just acquire professionals that do the work for you without being on your full-time payroll. Not only is it cost-effective, but it’s optimal for productivity and the success of your business in the long run.
These services come with flexible packages so you get what you pay for and have options according to your business scale.
By working with professional bookkeepers for hire, you can let the professionals handle most of the burden while you pay attention to core tasks. At ANM Auditors, we provide a complete solution of business payroll services, VAT accounting services, tax preparation services, business accounting services, and company registration services in South Africa for the best productivity and accountability.
Whether you’re a small business or a large entity, we can cater our services according to your operations. Get in touch with us today.