Five Tips to Better Bookkeeping
As a business owner, keeping track of your financial transactions and maintaining accurate records of your income and expenses is critical for success. However, bookkeeping can be a daunting and time-consuming task, especially if you don’t have prior experience in accounting. This is where Prosperity Bookkeeping LLC’s five tips for better bookkeeping come in handy.
Managing your finances can seem overwhelming, but it doesn’t have to be. With our five tips for better bookkeeping, you can simplify the process, reduce errors, and stay organized. By following these tips, you’ll have the peace of mind that comes with knowing your business finances are in good order.
So, let’s get started with our five tips for better bookkeeping.
Tip #1: Reconcile accounts monthly
Reconciling your accounts is crucial to ensure that your records match your bank statements. Doing so monthly is essential to spot discrepancies and potential fraud early on. This process also ensures that you don’t miss any payments or pay fees unnecessarily. If you’re unsure how to reconcile your accounts, seek the help of a professional bookkeeper.
Tip #2: Use Undeposited Funds for deposits
If you’re a QuickBooks user, it’s essential to know how to use the Undeposited Funds account to make depositing your funds easier. This account helps you manage multiple payments from different customers and vendors so that you can deposit them all at once. By doing so, you reduce the time you spend reconciling your deposits.
Tip #3: Code credits and refunds correctly
When you receive vendor credits or refunds, it’s essential to code them to the original expense account you used when making the purchase. This ensures that your records reflect the correct financial impact of the transaction, and it’s easier to track how much money you’ve spent on a particular expense.
Tip #4: Consult with an expert before using third-party apps
If you’re a QuickBooks user, it’s essential to avoid connecting third-party apps without consulting a QuickBooks expert first. Doing so can lead to issues with your books, and fixing the problem can be time-consuming and costly. If you’re unsure, seek the advice of a QuickBooks expert.
Tip #5: Avoid changing reconciled transactions
Making changes to transactions that have already been reconciled can throw off your books, resulting in inaccurate financial statements. If you need to make changes, it’s essential to make them before reconciling your accounts. If you’re unsure how to make changes without affecting your books, seek the help of a professional bookkeeper.
If you’re unsure about any of these tips, seek the help of a professional bookkeeper or QuickBooks expert. With their help, you can keep your financial records accurate and make informed decisions for your business’s future.
If you’re looking for a Bookkeeper in Green Bay, Wisconsin, reach out to Prosperity Bookkeeping LLC. We serve clients across Denmark, Green Bay, Appleton, Oshkosh, and the surrounding areas.
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