There is no doubt that your gardening business can go places if you play your game right. One of the key ingredients to being successful is the keeping of proper and accurate books for your business. Bookkeeping not only helps to avoid financial issues in your business, but also assists in avoiding face-offs with your employees, creditors and government. Perhaps, you are in need of ideas on how to avoid bookkeeping issues in your gardening business. Here are some tips you can use.
Use double entry
The principle of double entry is one that is widely employed in accounting and bookkeeping. What it entails is that every financial transaction should be posted into two different accounts. One of these accounts is debited, while the other is credited. Double-entry system makes it easy to prepare essential and clear reports for decision makers and tax authorities.
You should make it a habit in your gardening business to arrange and keep all financial or transaction documents such as invoices and receipts in a safe location. These should be stored in locked cabinets, as they may still be relevant when the tax man comes around. For documents in soft format, you should ensure the computers they are store on are protected with strong passwords.
Pay close attention to receivables and payables
Gardening businesses can owe and be owed like all other businesses. How these receivables and payables are managed can tell on your business in a good or bad way, depending on how you manage them. If you fail to pay your suppliers on time, you may not be able to get new supplies. In the same way, you may find your ability to execute new jobs somewhat inhibited if you are not paid as due by client. Important information, such as business name, amounts unpaid, due dates and terms, should be clearly noted in your books to help you keep tabs on payables and receivables.
For business owners who lack the time or skills to manually do their books, automation might just be the way out. You can use an accounting software package such as QuickBooks to handle your bookkeeping needs. These packages can greatly help to simplify your bookkeeping tasks. When using software, it is important that you backup your information onto an external storage media like a hard drive or portable USB drive regularly. This will ensure you are covered in the event of your computer crashing.
Get professional help
As helpful as accounting software packages might be, they have their limitations. Rules and regulations affecting the bookkeeping process of businesses change from time to time. Most accounting programs do not take these changes into consideration and this can be quite costly for your business. This is one of the aspects where working with professional bookkeepers, such as Bookkeeper Melbourne, can be highly beneficial. Getting professional help also makes it possible for you to have more time for getting more jobs.
Gardening businesses will do well to ensure that they keep proper books. Do not think your business too small for bookkeeping – a business is a business. The importance of bookkeeping becomes especially conspicuous when time reaches to deal with the tax authorities. You will do well to ensure your books are well kept for such a time.