Do you need some bookkeeping tips? Check out these 8 tips and become a pro!
Start on time. If you regularly keep your accounts up-to-date, you never have to do a lot at once. It is better do a bit of work every month rather than doing a lot every six months. Scheduel a moment in your agenda (for example, once every 2 weeks, or even better every week) to do your accounting. With our Excel file you do this very easily.
Tip 2: Record All Business Expenses
Do not forget to record your expense receipts. The more costs you can deduct, the less tax you wil lhave to pay eventually. This applies to both your sales tax and income tax returns. In order to deducts expenses you will have to provide proof, so keep your receipts close. Don't lose them.
Tip 3: Pay Expense Invoice On Time, But Not Too Soon
In the bookkeeping template you can quickly see all outstanding invoices. Make sure you pay your invoices on time.
Tip 4: Adjust Payment Term Per Customer/Invoice
The payment term is shown on the invoice template in your Excel-sheet. The standard payment term is 30 days. You can change that in the Settings tab.
Tip 5: Send Reminder To Customers Who Do Not Pay
Check in your bookkeeping template which customers has not yet paid you. Are they late? Give them a call. Make sure you are still on their radar. Has an invoice been paid? Make sure you change the status from 'Oustanding' to 'Paid by bank/cash' in your bookkeeping template.
Tip 6: Do Your Sales Tax Return
Don't forget to do your sales tax return every month or quarter. You will find the numbers in the Tax tab of your bookkeeping template. Make sure to check them.
Tip 7: Separate Private Expenses From Business Expenses
Did you buy a new sweater? That's awesome. However, do not record this purchase as a business expense. Make sure to record them as 'owners draw'.
Tip 8: Start a New File For Each Year
Is the year over? Save your Excel file again using a different file name (for example: Accounting-2019-001.xlsx). Save it in a separate folder (which you also call Accounting 2019 for example). Then you download the latest version of the bookkeeping template (remember, it is 100% free!).