If your financial books are a mess, don't despair! With a little bit of organisation and some elbow grease, you can get them back in shape. Here's a handy checklist to help you get started:
Identify the Problem in Your Books
The first step to cleaning up your financial books is to identify what, exactly, the problem is. Do you have missing receipts? Incorrectly categorised expenses? Out-of-balance accounts? Once you know what the issue is, you can start taking steps to fix it.
Gather All Your Financial Documents
The next step is to gather all of your financial documents. This includes bank statements, credit card statements, invoices, receipts, and anything else that contains financial information. If you have physical documents, make sure to scan them and save them electronically as well. This will make it easier to organise and keep track of everything.
Sort the Documents By Date
Once you have all of your financial documents gathered, sort them by date. This will make it easier to find what you're looking for and will help you see patterns over time.
Categorise Your Expenses
One of the most important parts of keeping tidy financial books is categorising your expenses. This will help you track where your money is going and identify areas where you can save. There are various ways to categorise expenses, but a good starting point is to separate them into fixed and variable expenses.
Fixed expenses are those that stay the same each month, such as rent or a car payment. Variable expenses fluctuate, such as utilities or groceries. Once you have your expenses categorised, you can start tracking them in a budget.
Separate Your Personal and Business Accounts
If you have both personal and business accounts, it's important to keep them separate. This will make it easier to track your expenses and income, and it will help you avoid any potential legal issues.
Create a System for Tracking Income and Expenses
There are many ways to keep track of your income and expenses. You can use a simple spreadsheet, an accounting software program, or even a notebook. The important thing is to find a system that works for you and stick to it.
Enter All Your Transactions into an Accounting Software
If you're not using accounting software, now is the time to start. Accounting software can save you a lot of time and frustration by tracking your income and expenses for you. There are many different accounting software programs available, so take some time to research your options and find the one that best meets your needs.
Consider Outsourcing Your Bookkeeping
If you're not comfortable doing your own bookkeeping, consider outsourcing it to a professional. This can be a great way to free up your time so you can focus on running your business.
Conclusion
If you're looking to clean up your financial books, there's no need to hire a professional bookkeeper. With a little bit of organisation and elbow grease, you can get your books in tip-top shape in no time. The most important thing is to stay on top of things regularly - don't let the mess build up!
With this bookkeeping clean-up checklist in hand, you're well on your way to getting your financial affairs in order. So roll up your sleeves and get to work!
The ECommerce Accountant offers you the services of a seasoned Gold Coast accountant. Contact us today to learn more about how we help businesses from different industries!
Commenti