Bookkeeping can be such a tedious job, you know! Maintaining all the expenses, transactions, and recording all these on the computer or the books can be so difficult. Yet, it is a necessity because otherwise how will you account for the finances of your business?

When we talk about the things that can be done for a business to make it better, hundreds and thousands of suggestions may pop into your head – starting from marketing, supply chain management, product development, etc.

It’s like people are talking about dreaming but they forgot to mention sleep, even once! A study showed that close to 60% of business owners feel that they lack the knowledge in accounts. Hence, this article is just the best available crash course to talk about bookkeeping tricks and tips.

1. Choose a good accounting Software

Software applications have made our life really easy. All we have to do is feed some input into it and the rest of the work is completely done by the software and the output so generated is error-free. Having a good book-keeping software is very important for your business, as this software will either make or break your business.

Why do we say that? As we all know, cash flow is like the lifeline of the business, which helps in the decision-making and other activities of the business. If your software is not advanced, it will not help you track your funds, which will lead to a lot of chaos. Hence, choosing from options that have a good track record, like a Tally ERP, Quickbook, Dolibarr, is a necessity.

2. Hire a Professional

Many businesses tend to save money on their bookkeeping parameters and feel that a good software will get the work done easily. They usually prefer to train their inhouse employees and expect them to deliver quality work. However, the training might not be sufficient for them.

This results in faulty data entry, conceptual errors, facts misguided and the whole bookkeeping process is on a toss. Hence, the best solution is to hire someone, who is well equipped with the basic accounting concepts and knowledgeable about the software. This will keep your finances on track with accurate data entries. For instance, a resourceful bookkeeping service will immensely help you to sort out your accounts which will affect your overall endeavors.

3. Don’t get confused between two methods

When it comes to bookkeeping, there are usually two kinds of methods – Single Entry and Double Entry. Both of these methods are highly different and often cause a lot of confusion.

Single entry method of bookkeeping stresses on all the transactions being recorded once, only. It is an easier method for simple businesses, usually applicable to those with lesser inventory and no assets.

Double Entry method is highly scientific and records each transaction twice proving that transactions have a dual-effect depending on the nature of the item. It is broadly used by all businesses.

4. Have a separate Bank Account

Most of the small businesses have the same bank account as their proprietor. This means that all your personal transactions are also processed through the same account and it may turn your life upside down while trying to segregate business from personal expenses.

Hence, if you want the easiest and most important hack for your life – simply start by having a separate bank account for your business. This will help you in maintaining proper sync with your books of accounts for the business.

5. Keep Matching the Data at regular intervals

Always know that there should be a day assigned every week, where you can compile and match all the transactions along with the data, which is fed in your software. If your business introduces this hack in its weekly activities, it will ensure that the data is accurate and relevant all the time.

It will also help you to find the errors early, which otherwise would have been identified at the end of the fiscal year to balance the books.

6. Every Transaction matters!

Every transaction irrespective of the amount has an impact on the final figures. So, make sure each transaction is recorded accurately under the same method. If you don’t do the recording diligently, there can be a loss of important data related to your finances and books.

Now, with this knowledge, step out into the real world and apply them to ensure your bookkeeping is on the right track!