Accounting has been deemed as a nightmare to most business owners. However, it does not have to be, with a little planning, you can ensure your records are complete and accurate.
Here are some things that you, as a business owner, should be able to do even if you have not studied accounting.
Know the Basics of bookkeeping
As a young company, you may not have enough money to hire a professional accountant, having basic knowledge in bookkeeping will help you save hiring money and also keep you in touch with your business money.
You should keep accurate records
It is important to track every expense and cash flow. Track all the loans, revenues and cash infusions to avoid paying unnecessary fees.
Separate personal expenses from business expenses
When it is time to tally up the deductible expenses, a lot of time will be saved and you will also be saved from headaches of separating your expenses from those of the business.
Occasionally update your books
Dedicate a day every week to get paperwork in order, this will help you avoid a pile up of receipts and invoices.
Keep track of tax reports
This will help you pay on time and avoid a pile up of penalties. Also, read our tax guide if you are a business person in Kenya.
Book your debtors
In business, credit sales are almost inevitable. Having a debtor’s account book will help you keep track of them and send reminders to them.
Do not leave out even the little details
Most startup business people tend to assume the little details such as little incentives to employee. These small expenses should be recorded on the accounts book since they are part of the business expenses.
In conclusion, no business can run effectively without a proper accounting system, it is therefore upon you to set up an accounting system by either hiring a professional or learning the basics of accounting depending on what level your startup is.