As a business owner, I know the benefits of good bookkeeping and would like to share some tips with you. I have seen businesses struggle because they did not know they could have handled their expenses better.
Tip 1: Plan for major expenses.
How is this helpful? This is helpful because you are reducing the likelihood of missing business opportunities or stressing because you have to scramble for a loan when the expenses become inevitable.
How do I do this? Put events such as a major computer upgrade on the calendar a year in advance or ideally three to five years ahead. Your computer, phone or calendar in your email can help you keep track of these dates you have set. Email works pretty well because it is always there and accessible. Keep track of those seasonal up and downs. This way you can plan to set money aside for those downs and make them a little less stressful.
Tip 2: Track expenses.
How is this helpful? This will help you catch some tax write-offs and prevent you from losing out on other write-offs. It is easier to get a credit on your taxes and you have the proof for the write-off.
How do I do this? Use a single or only a couple of credit cards for business purchases only. This can be a great resource for your accounting system. Most credit cards these days will categorize expenses. This will help you get an overview of your business activities and help you keep track of the receipts. If you go to Staples or Office Max, using your credit card for your business can help you get those write-offs like paper and pens.
Tip 3: Plan to utilize Co-op credits.
How is this helpful? Several businesses out there give a credit back to companies for advertising. The amount of credit usually depends on the amount of purchases you have made from that company. The credit amounts are usually based on the previous year’s purchases. These Co-op credits also have an expiration date.
How do I do this? Use your calendar whether it is on your computer, phone or email. It is extremely important to mark specific dates when you feel that your Co-op money would be well spent on advertising. Take the time to set up the reminder on your calendar and make sure to have enough time to create your advertisements. Adequate time set aside will allow your advertising to be more effective and improve the profitability of your company.
Stay tuned for the more tips…