Bookkeeping, like its close ally, accounting can get really complicated. Just to clarify a bit, bookkeeping focuses on collecting records of transactions into a single ledger while accounting converts the information in the ledger into other useful business metrics. A great bookkeeper must know ways to simplify their work to minimize complications.
3 simple Ways to do Bookkeeping
Establish a system
One of the valuable skills needed in an accounting firm is consistency. You need a system that will be thorough and flawless in recording info. You don’t want to end up with issues like lost receipts, double transaction recording, and unrecorded transactions. This could lead to data misrepresentation.
Some of the common systems used by Bookkeepers Melbourne include spreadsheets, accounting software, and simple items like boxes and files for receipts and other small documents. The goal here is to be consistent, accurate and be able to access any material whenever needed.
Record transactions properly
There are many methods you can use to record transactions. The common ones used by bookkeepersare cash and accrual methods. The former deals with cash received for sold items or services while the latter focuses on the general financial health of the company. Don’t mix records.This can lead to confusion which eventually translates into time wastage.
Generally, you should have records of sales, purchases, returns, cash transactions and “others” for miscellaneous processes.
Post transactions regularly
One of the biggest mistakes a Bookkeeper Melbourne can make is letting transactions pile. You should update the ledger often, preferably on a daily, weekly or monthly basis. How frequent you update work files depends on the company’s transaction volume.
Where possible, you can analyze the ledger accounts for the company. Just the simple stuff like comparing sales to expenses to know the company has performed. Leave complex reports to accounting programs and experts-unless you double up as an accountant.
Simple ways to get your books in order quickly
As an individual bookkeeper, thing are likely to get out of hand as more work stream in. finding ways to get this work done without letting your clients down can increase the number of contracts you get. Here are ways you can delegate extra work.
Work with interns
Interns are a valuable and affordable resource for anyone running bookkeeping services. These individuals are already trained, so you won’t spend much time drilling bookkeeping practices into their heads.
Use online freelancers
There are many beginner freelancers out there you can use instead of killing yourself with work. You’ll be surprised to realize that some of them can provide better services at a small fee. Just make sure pick the right bookkeeper Melbourne freelancer for the job.
Hire a family member
If there isfamily members you are supporting financially, it’s time they learn how moneyis made or be worth what you do for them. By assigning them some work, you will be training them how to run asmall business effectively through good bookkeeping.
Make use of these tips, and you’ll find bookkeeping to be quite a simple process here http://www.bookkeeperco.com.au