Introduction
Book keeping is an art of maintaining cash books, receipts and up do date accountability of a firm or corporation. A disorganized desk of a accountant without proper maintenance may lead to chaos and confusion in marinating accounts, books and ledgers of a firm. It also helps to diagnose healthy cash flow and increases your business scopes in various fields. In subsequent paragraphs we shall discuss some tips of healthy books keeping.
Keep proper financial records
A good and efficient accountant should brief his CEO about the following for running smooth business.
a. There should be proper cash book which will help to know payments in and out of your bank account. Keep it up to date it will help to know the detail records.
b. Sale invoice file should be in chronological order to know issue and sale invoices to know credit control.
c. Purchase invoice file should be maintained to know about the payments made and the mode ie through cheques, BACS etc.
PIF should be in chronological order, to save time.
Get an invoice or receipt for everything you buy
Be in business there are always chances that firm can be investigated for Taxes, need not to worry keep a proper record of every transaction u make in your business that will help you to know the record of all buyers ,purchases and easy to handle for future references. Also if you ever have a disagreement with one of your stakeholders, having an invoice can resolve the matter in no time!
Keep your accounts clean - separate business and personal expenses
Do not mix your personal expanses with company assets that will create problems. You may have separate accounts to have easy understanding of expenditures from company accounts and your personal assets.
Check bank statements
From day one keep checking your bank accounts, make it habit. It will help you to know that your bank is playing fair with you or other wise and help u know where you are spending money. Also it removes the risk of any frauds that you might be exposed to and allows you to keep in touch with the blood of your business, which is money!
Put time aside to do your book-keeping regularly
Do check your books ledgers regularly to avoid pile up work .An easy approach in book keeping may increase your work load. Be regular to check your accounts and make it a habit
Get help with your finances - hire a book-keeper or accountant
Do hire a professional if firm or company cans manage. An expert advice will give boost to your business. They charge a really small amount but the results that you will get are far better in the long term. If however you cant find the appropriate accountant its better that you switch through some personal refrences. The professional code of conduct of accountants makes it really easy.