DO IT YOURSELF BOOKKEEPING?

As a new business owner it is a very real possibility that hiring a bookkeeper is not an affordable cost and taking it on in the beginning is what you have to do.

A lot of why bookkeeping is thought of as an annoyance is because it tends to take a back seat in the beginning and as a result things can become a mess quickly. Lost receipts, forgotten start up costs, potentially missed filings. This is when business owners tend to have their first road block.

What are a few tips that can help us get organized in the beginning?

IF YOU DON’T HAVE A BOOKKEEPING SYSTEM OR EVEN IF YOU DO BUT NOT SURE HOW TO USE IT AS OF YET, USE EXCEL

A. Open an excel workbook. On the first worksheet, record any start up costs that may have been paid personally and not through the business cards. Include the Date, the vendor (staples etc…) type of expense ( equipment or legal fees etc..) the total cost and the hst if applicable.

B. Start another worksheet to include any other ongoing expenses that may have been paid personally. It is recommended that all business expenses be paid through the business account, but sometimes this doesn’t always happen.

C. Record your assets and liabilities, in other words what do you have and what do you owe. Cash, any accounts receivable, any inventory, land, any equipment, leases, loans, line of credit etc…

B. Download your business account activity on a monthly basis. Most banks will allow you to do so and to export into an excel spreadsheet. You will have most of the information like the date, vendor, total and you can then add columns to include type of expense and any tax if applicable.

C. Make sure to save your receipts and highlight which ones you don’t have on your spreadsheets.

D. Save your bank statements monthly.

E. Save your invoices and deposit slips or get in the habit early of recording your payments when they happen.

These are a few tips and I will tell you it goes a long way. If you end up hiring a bookkeeper, he or she will need this information and the more organized you are from the beginning the more money you will save.

Visit us today. Sum Bookkeeper.