Simple tips for your books

A clean setup saves you headaches later.

• Connect your business bank and credit card accounts.
• Keep your list of accounts short and simple.
• Set aside a little time each week to review and categorize transactions.

Reconciling means matching your books to your bank and credit card statements.

• Do it every month, soon after your statements arrive.
• Check that this month’s starting balance matches last month’s ending balance.
• If something doesn’t match, look for missing, duplicate or mistyped entries first.

Payroll goes much more smoothly with good records.

• Collect new hires’ paperwork before their first payday.
• Stick to a regular pay schedule.
• Keep a record of every payroll you run.

A budget doesn’t have to be fancy to be useful.

• Start with last year’s real income and expenses.
• Plan for the slow months, not just the busy ones.
• Each month, compare your budget with what actually happened.

Good habits from day one make everything easier.

• Open a separate bank account for the business.
• Keep your receipts, and store them digitally.
• Choose a bookkeeping system before your first sale.

Being organized is the best way to prepare.

• Keep statements, receipts and records together and easy to find.
• Make sure your books are reconciled and up to date.
• Work through a checklist so nothing gets missed.