Suggestions for best bookkeeping practice

1. Frequency Of Update Of Books

The frequency of your update drastically affects the efficiency of your bookkeeping. Ideally, you should update your records weekly or fortnightly. Doing it more frequently or regularly may lead to inefficiency of the employee doing it. But doing it less frequently or in long durations is not suitable too since the chances of missing transactions can increase. Also, the frequency of update should be pre-decided and fixed at regular intervals. Otherwise, it may create confusion.

2. Use Cloud-Based Accounting Software

Use of cloud based accounting software eases your workload as all of these softwares are automated. It means that they automatically track, record and manage your invoices and bills, bank transactions and accounts payables & receivables. Cloud softwares is also helpful in sharing and accessing data. Hence, it will save a lot of time of employees, adding to their work efficiency. And since most of these softwares come with subscriptions packages, you do not need to invest much on them. It will not strain your finance in any way.

3. Separate Personal And Business Transactions

Since business is a separate entity from its owners, its expenses and income should also be treated separately. If you do not identify and separate your personal expenses and record them along with your business transactions, it may manipulate your financial position. A mixture of your personal and business transactions will never show you a true position of the business’s financial health.

4. Check-Up Of Your Financial Health

Always do a uniform check-up of the financial health of your business. Businessmen always tend to push task at the back. But doing financial check-up from time-to-time will help you have an insight over your finances, cash-flow, debtors etc. It will also help you monitor the growth over a period of time.

5. Get assistance from Meru Accounting

Meru Accounting is India’s leading outsourced accounting and bookkeeping firm. Invest your trust with our tailored bookkeeping services. We are a cloud accounting firm who will help you manage your books of accounts. We use the most popular and efficient accounting softwares that will fully automate your bookkeeping. Along with that, we provide many services like payroll management, receivable and payable management.