5 Ways to Simplify SMB Bookkeeping Practices

1. Flash the Cash

Accrual or Cash? If your business is coming in under $5 million in annual sales and inventory isn’t necessary to account for, there is really no need to use accrual methods of bookkeeping. The IRS advises sole proprietors to instead adopt the simpler cash method of accounting. Not sure? You can always change it later: http://www.irs.gov/publications/p334/ch02.html#en_US_2014_publink1000313285

2. Keep it Clean

Looking for an ultra simple way to stash your documents? Try a dedicated yearly storage box. Drop in records, receipts, statements, tax return labels, and more to easily reference by year. Keep your box stashed on or under your desk so organization is never far.

3. Be Special

In bookkeeping, much like accounting, there are many generalists. Consider the possibility of specializing in the industry you work in most to help attract more clients and cause less headaches. Instead of spreading yourself thin trying to ramp up your knowledge of any potential clients’ industry, hone in on areas where you’ve already achieved success; it’ll make your expertise more valuable. 

4. Pay and Keep Tabs

Tracking expenses is a necessary evil; no fun to do, but those with attention to detail can be rewarded. Many don’t realize the write off potential beyond meals and entertainment, but the IRS offers credits for health care, home office, driving, and even child care. With 17hats, all transactions are organized and categorized in one place, making these credits a snap to identify.

5. Save Now, Win Later

Some of us are impulse shoppers, but it’s important to avoid it when it comes to certain expenses. Don’t be tempted by office or equipment upgrades when you’re rolling in dough. Setting aside a budget at the beginning of the year for necessary (and surprise) expenses alike will save you a headache in the long run. 

6. Habit Forming

When crunched for time, it’s tempting to fall into the bad habit of using 1099s from customers as a means of record keeping. Beware, this isn’t bookkeeping at all, and can only complicate matters in a number of ways. Instead, try our fully automated bookkeeping suite at 17hats to simplify record keeping and get back your time. 

7. Make a Date

Bookkeeping is neither fun nor sexy, but making time for it is essential. Set a weekly calendar reminder to spend 15 or 30 minutes on Monday morning with a cup of coffee and 17hats, poring over your previous week’s records. In a few minutes you’ll be able to get organized and ready for the week ahead.