Sara El Kareh
If you want your business to succeed, you should adopt the bookkeeping technique, i.e. maintaining archived reports of what you sell and buy and all your transactions. Many business owners do not know the importance of bookkeeping, the reason the failure of several companies. Below are some effective roles which bookkeeping play in small businesses:
- It is important to have bookkeeping software, even if you cannot afford to pay for a professional bookkeeper. Good software can be much more useful to organize your stuff. Much software serves your needs for accomplishing invoicing tasks, as well as for tracking your sales and organizing every data conveniently. The software must be an easy functioning one, not having to waste time in order to create the reports for marketing department.
Moreover, you must be aware of the size of your business so you can choose the right software to use accordingly. Some software solutions are dedicated to bigger companies and include complex functions that you may not need. As your company begins evolving, you can either employ a bookkeeper or even assign this task to other specialized companies.
- Creating brief reports about your sales and incomes is an effective role of bookkeeping. Once you start organizing all the related data, your books will stay updated, and you will easily track your expenses and your gains. It is easier to use electronic records, since you can apply changes easily when necessary. Make sure you save the receipts in organized files for auditing purposes.
- Another important thing to do is to merge your books with the bank often. Regardless of how many times you do that, whether daily or weekly, you should not ignore these reconciliations. In this way, you avoid faults in bookkeeping and keep everything managed. It also helps indirectly in ensuring your bookkeepers’ honesty.
- A great part of bookkeeping is a duty of a manager; he/she is obliged to know what the company’s assets are. Monitoring the inventory is very essential to keep track of what is going in to the company and what is going out. Not to mention that several software solutions include tracking programs which could be useful to stay up-to-date regarding the inventory levels. If you want to run a successful business, you need to know the tiniest details about your company’s assess and warehouse activity.