Your business can’t be profitable if you don’t get paid. Regular accounting tasks may not be the most exciting aspect of running a business but they are necessary. Although important, it can be all too easy to procrastinate and not get these critical tasks done regularly. Here are some ways you can stop procrastinating and complete your bookkeeping tasks regularly
Set Up And Maintain Organization
You might be procrastinating your accounting because your receipts and invoicing are a mess. If this is the case, your first step should be to create an organization system for them. A lack of organization makes it much harder to motivate yourself to complete your necessary bookkeeping tasks. Try creating a space where you can keep your accounting documents so they are all accessible when you sit down to do your bookkeeping. Organize them by client or expenditure type when they come in. Keep invoices and expense receipts separate.
Use Technology
Accounting software makes bookkeeping much easier for small service-based businesses. Some of the major options include QuickBooks, Freshbooks and Xero. In many cases, functions can even be automated. These features can send automatic reminders to clients with past due invoices. They can also generate financial reports from available data. When you move the handling of your business finances online, everything is securely stored in the cloud. This means you don’t run the risk of losing important information in the event of a disaster. Keeping all of your finances in a central program like these also reduces the risk of misplacing a receipt or invoice so you don’t become overdue on a bill or never get paid for work you did.
Form Habits And Schedules
Another good idea is to work on forming good habits that help ensure you get your bookkeeping done. Once in place, a habit can be difficult to break, so this leads to lasting positive behavioral changes. Designate a certain day of the week and do your bookkeeping. Doing your bookkeeping at the same time on that day is great for getting on and sticking to a schedule. Don’t be distracted during this time. Avoid answering phone calls or e-mails unless until you are done. This will improve time management in general. Time management is critical to prevent procrastination. You should also do final accounting at the end of the month. This is important for your records and the long-term financial health of your business. It allows you to evaluate your performance and note whether there are any issues.
Consider Hiring An Accountant Or A Service
Accounting may not be something you can do on your own. This is especially true if your business is growing. This is a good problem to have, but your attention may be elsewhere. If you find yourself unable to stay on top of your accounting for any reason, a viable alternative is to hire a dedicated accountant to work for your business. However, your business may not be ready to hire an employee. Working with an accounting service for your bookkeeping is another option. These options are preferable alternatives to business bookkeeping errors or tax mistakes.
Stop procrastinating your bookkeeping tasks today. At best, you will fall behind and have to catch up. At worst your business could be in serious financial trouble without you knowing about it. An audit could be a nightmare if your accounting isn’t up-to-date. JMV Financial Services can provide guidance on bookkeeping and taxes.