Small business bookkeeping is an essential part of running a business but can be difficult for those just starting out. Knowing what to record and how, what information needs to be retained for tax purposes and other legal requirements is complicated, and that’s without mentioning learning how to interpret books and gain insights for future business decisions.

Here’s four bookkeeping tips for small businesses to help you get started.

1. Keep personal and business accounts separate

If you are a small business owner, and especially if you are self-employed, it’s important to keep business and personal accounts separate when bookkeeping. Make sure any transfers to a personal account are logged appropriately.

2. Outsourcing

If your business has grown to the point where you need bookkeeping advice, it may be wise to look at outsourcing as an option. The fact that your business has grown to this point is a testament to your proficiency at the business’s core activities, so outsourcing can give you the time to focus on that and keep growing the business. There are plenty of accountancy services that specialise in bookkeeping for small businesses, including those offered by J Sweeney.

3. Invest in some accounting software

Accounting software, especially cloud accounting software, is an excellent way of keeping track of your business’s books. This software provides easy to use tools for logging transactions and exporting reports, making filing tax returns, annual accounts and the like much easier. Often, a lot of these processes can be automated, so transactions are automatically logged as they pass through a point-of-sale system. J Sweeney can assist in setting up this software and help you use it to the fullest.

4. Use insights to their fullest

Having clear and accurate books is important, but it’s the deeper understanding of your business’s financial situation that is truly invaluable. This data can help you see what areas are performing well or underperforming, what funds are available for investment in expanded or new operations, and help you make more informed business decisions overall.

J Sweeney’s affordable bookkeeping tips and services are ideal for many small businesses. Contact us to find out how we can support you.