Monthly Archives: July 2014

Managing Your Books Properly and Efficiently in Business

One of the most important things that you have to do in business is keep track of the profitability of your business. Most businesses if not all are meant to be profitable or at the very least sustainable. Profit is what would keep your business alive so it is something that you need to monitor. That is why finding a bookkeeper in perth is very important. You can see how profitable you are or how much you are losing by looking at your books.

Proper Management Of Your Books

Ideally you should get someone to keep your books for you. This will assure you that your books are up to date and can provide you relevant information that you can use for decision making. You do not necessarily need an accountant to do it for you. Your books can be handled by someone who has no background in finance or accounting whatsoever as long as that person is meticulous enough to record transactions regularly.

In order for your books to be managed properly and efficiently, you must set controls and standards in order to make sure that your requirements are met. Otherwise, you could potentially lose so much due to not being able to monitor your transactions properly. A few tips on how you can manage your books properly are listed below.

1. You have to make sure that the recording is done regularly. If it cannot be done in real time, then it should be done on a daily basis. It is always best that your books are updated so that when you need the data, it is readily available.

2. You have to make sure that transactions are balanced regularly. An unbalanced book would mean that there are errors in your entries. Errors could be detrimental to your business because you may be making decisions that are based on that error.

3. Provide complete details for your entries. Do not just write general descriptions. This will not be able to help you when you are reviewing your books.

4. Record transactions properly. Each transaction should be balanced to ensure that there are no errors. Corresponding accounts have to be used properly as well.

5. Make spot checks. If you are not the one maintaining your books, this is a good way to see if your bookkeeping company is properly recording all your transactions.

Here are a helpful resource for Beginners.