The Ultimate Bookkeeping Catch Up Plan
Are you ready to get your taxes done and stay on top of your money? I love this strategy for tons of reasons, including because it will help you feel back in control and excited about your business again!
Use this handy plan to help you get out of a pickle as you work through each of the steps. You’ll be then well on your way to better small business money management.
Step 1 : Determine which bills and receipts are business related.
Some expenses will related to your business and you personally, especially if you’re hustling from home. If you’ve got a home based business you maybe able to claim home office expenses such as heating, power, internet, phone & office furniture as a business deduction. Stay on the safe side and have this information available so your accountant can decide if you are entitled to claim those as a deduction. The portion of those expenses that were for private use are not a business deduction.
Step 2 : Have a digital copy of your business bank account exported from your internet banking so you can make notes against each transaction. Even better, upload your business bank account into accounting software like Xero, so you can categorise your transactions faster.
Step 3: Invoice all your customers you’ve done work for. To keep your cash flow regular you’ll need to regularly invoice your customers for the work you’ve done for them. Take your cash flow to the next level and design a subscription model for repeating regular income paid by direct deposit.
Step 4 : Gather supplier invoices, both paid and unpaid. At the end of each week, fortnight, month you’ll want to know which bills you’ve paid and which are unpaid. Pay the oldest ones first to keep your suppliers happy. Use a cloud system like Receipt Bank if you’re not coping with the volume of bills in your inbox.
Step 5: Mark off the paid supplier invoices against your business bank account.
Have a system for knowing when you have paid your bills. Go old school and write PAID on your hard copy bills or go paperless and store an image of your bills inside Xero cloud accounting software. This helps reduce paying bills twice and missing unpaid bills.
Step 6: Mark off your paid customer invoices against your business bank account. Once your customers pay you have a system for recording their payment on the bank statement. You could print a hard copy invoice and simply stamp it PAID or you can use cloud digital invoices, like I use in Xero to help you get paid online in just a few clicks. Your customers will love how easy it is to pay you direct from their inbox using their plastic.
Step 7: Ask for help friend! Let’s design a simpler routine. Today we’re truly the blessed generations who’ve been gifted the internet and the affordable cloud tools. They’re easy and fast to setup plus they’re the cream on the ultimate sundae that is your business. Make time for the important stuff in life with simple systems and cloud tools.