Separate your personal and business account(s).
Did you know 27 percent of businesses use the same cards and accounts for business and personal use? Talk about a recipe for disorganization! While it might be convenient in the short term, mixing your books is a headache by the end of the year because it’s harder to determine where you spent money.
Consider breaking up.
Business and pleasure don’t usually mix well and might be better off going their separate ways. When you separate the accounts, your company can keep accurate books, manage cash flow, perform budgeting and forecasting, and more. It’ll make life easier come tax time too because you’ll be able to see what expenses are tax-deductible, determine debt repayment, and file tax returns.
Track your expenses.
Where exactly is your money going? Expense tracking gives you the visibility to answer that question and improves decision-making. Bonus perk: You may even avoid unnecessary income taxes. But to do it effectively, it comes down to putting the right system in place.
Implement an automated accounting system.
Forget the spreadsheets and put your calculator away. When you take advantage of accounting software such as QuickBooks, you can automatically sync with your bank account. With these pieces in place, your accounting software can create a chart of accounts, recording transactions and classifying each appropriately.
Find data entry errors.
You’re in business, baby! Of course, that means recording a large volume of transactions, and errors are bound to happen. So you need to be diligent about finding data entry errors. Where do you start? Look for the obvious.
Look for common errors.
As you go through your books, think about the data reflected in them to spot red flags. Leaning on software might take you down a path of virtual bookkeeping, but human error in data input still happens. Do your records show any of the following?
- Inaccurately classified debits and credits
- Incorrect numbers
- Transposed information (e.g., inverted numbers)
- Errors of omission (forgetting to record a transaction)
If you uncover data entry errors, respond quickly to fix them. But to prevent future issues, consider preparing trial balances at the end of reporting periods to spot errors before they become larger problems.
Look for duplicates.
Twice as nice? Not so much. Duplicate entries in your books make it look like you have more or less money than you actually do. You can’t hope to maintain an accurate picture of your financial health if the books are wrong, so take steps to right the ship.
Reconcile accounts to find duplicates.
Account reconciliation puts you on the right path to maintaining accurate books. The process is relatively straightforward and is designed to find duplicate journal entries. To do this, look at your bank accounts and match the balance in your accounts to the transactions in your books and bank statements. Did you enter anything more than once? Remove those entries to course correct.
Get a hand from virtual bookkeeping.
Need a little help? Virtual bookkeeping is a perfect fit if you lack the knowledge to handle your company’s bookkeeping on your own or don’t have the resources to hire an internal bookkeeper.
Virtual bookkeepers maintain all key information.
Ignite Spot has a whole team full of virtual bookkeeping pros ready to get—and keep—your books in top shape. With our guidance, you get trusted expertise to help your business succeed as our virtual bookkeepers work to:
- Set up transaction databases.
- Reconcile accounts payable and receivable.
- Create income statements and balance sheets.
- Report data management irregularities.
- Check reports for accuracy.
- And more!
Part of accurate bookkeeping is having the right person—or people—to handle it. An external partner might be your best fit.
Clear the clutter with virtual bookkeeping.
When your company’s books are a mess, it’s easy to panic. But the good news is you have ways to clean house. Several strategies, from keeping business and personal accounts separate to clearing out duplicate entries, keep you organized. Virtual bookkeeping services may even save the day—and Ignite Spot would love to help. Our team has had years of success across several industries and has access to the latest tools and technologies to keep you on the right path.
Get started with virtual bookkeeping. Explore our service and pricing options and get in touch.