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Draw Accurate Financial Information With Our Bookkeeping for Small Businesses

Managing a small business looks easier because of its smaller scope in the industry. Many assume it’s less stressful to manage cash flow because it’s a small business.

If you still think like this, well, you’re wrong.

According to a survey, 82% of small businesses fail due to poor cash flow management skills

 

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Our professional bookkeepers will help you save time in finding errors and keeping accurate financial statements.

If you’re ready to draw accurate financial information, contact us today.

Regardless of your firm’s size, it’s best to have an in-house accountant or bookkeeper. If you’re looking for experts to help you better manage your financial information, Pearl Lemon Accountants is the place to go.

Difference Between Bookkeeping and Accounting

It’s common to see bookkeeping and accounting being used interchangeably, but these two processes are different! To help you disseminate the difference between the two, read this:

Accounting is the process of gathering, analyzing, and conveying information about financial transactions that were recorded in ledger accounts. On the other hand, the bookkeeping process is primarily concerned with locating, quantifying, and documenting financial transactions.

While they might seem similar, we can further see their differences through their objectives.

The goals of accounting include gauging the financial status and further communicating the information to the appropriate authorities. On the other side, Maintaining accurate and organized records of all financial transactions is the goal of bookkeeping.

Regardless of their difference, those two are necessary for accrual accounting.

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Small Business Bookkeeping Tips

As a small business owner, you are in charge of maintaining your company’s books. If you keep correct and up-to-date accounting records, your business will be successful.

However, if you ignore your accounting duties, your company might swiftly perish before it has a chance to expand. Get insightful advice from our small business bookkeeping service. These tips are sure to keep your books in good shape.

Separate personal from business finances

We strongly advise having separate bank and credit card accounts used only for work, even if you are self-employed or a freelancer. 

As soon as you decide to move through with your venture, you can also open a business bank account and obtain a separate credit card. 

Your bookkeeper will have fewer transactions to sort and reconcile if you remove any personal transactions from your business accounts. This helps you keep your accounts distinct and helps your company establish its credit history.

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Do regular checkups

You may find yourself with bounced checks, a past-due invoice, or figures that don’t add up if you put off bookkeeping for an extended period. Check your books once a week to make sure everything is in order.

Track business expenses

Keep thorough records for everything you anticipate claiming, and save time by scanning and digitizing receipts. You can simplify spending tracking by consistently using a business credit card for business transactions.

Keep track of your records, including all your expenses and costs for supplies, inventory, insurance, and utilities, when it comes to your books. 

Create a strategy for dealing with unforeseen costs as well. In this manner, you will be able to anticipate higher spending and prevent future surprises.

Analyse Accounting Reports

Your bookkeeper’s responsibility is to enter data into the accounting software; don’t rely on them to assess your accounting reports. The business owner’s responsibility is to review the accounting system’s output to manage the company better.

You should be able to create several statements on your own so that you may review them at least once a week.

Automate

It’s so outdated to manually reconcile statistics and enter data into Google Sheets, Microsoft Excel or spreadsheets. Use online business banking and cloud-based bookkeeping software. The software can help you have correct, up-to-date data, and you can sync your bookkeeping software with your business bank account.

Consider storage, accessibility, and security when looking for small business accounting software. Make a list of the features, costs, and reports that your company absolutely must have.

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Prioritize Your Books

There are many things you need to accomplish as a small business owner. 

It may be tempting to put your books on the back burner, so you can concentrate on running your business. 

But if you want to maintain your company headed in the right direction and your finances in order, give your books priority. Keep your books tidy and current from the start. You’ll get bogged down in small business bookkeeping if you continue putting off doing your books. 

Make time to check and update your books so that you can prevent a backlog of accounting work. Make regular additions to your books of transactions (e.g., once per week). Accounting will become less of a bother as you keep up with it. You can also make use of the best accounting software out there to help with your bookkeeping tasks.

Hire A Professional

While the tips above help you do better bookkeeping for your business, it’s still in your best interest to seek help from professional bookkeeping accounting services to ensure your business’s financial health. 

Having a professional bookkeeper lets you focus on other aspects of your business needs.

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Pearl Lemon Accountants As Your Professional Bookkeeper

Regardless of the size of your business, hiring a bookkeeper gives you more time to concentrate on developing and running your firm. You can hire bookkeeping services to help you with essential chores like bookkeeping and on-time submission of your company’s and HMRC returns.

Pearl Lemon Accountants have experts who can help small business owners accurately make their financial statement and transaction.

Specialist Bookkeepers You Can Trust

As a result, you can always get our professional, jargon-free advice on anything from expanding your business to saving money on taxes. 

We Can Give You Advice

Sometimes, accounting firms receive a bad name for merely going through the motions when dealing with clients. 

However, they won’t go above and beyond and give you the advice you genuinely want to hear. 

They will ensure you are compliant and pay all your payments on time, just like we do. We’re here to give you wise business advice.

If you want to learn more about our services, book us a call today.

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We Are Sensible

We enjoy building lasting relationships with the people we work with over an extended period, and we want to do the same with you. 

We are more than just accountants when you work with us; we are approachable, cordial colleagues who have your financial interests in mind.

We Are Experts On The Field

Our team at Pearl Lemon Accountants has years of combined expertise, so we are knowledgeable. We don’t enjoy self-promotion, so we let our skills, knowledge, and experience do the talking.

FAQs

No matter the size of your business, bookkeeping plays a crucial role in legal and financial administration. 

By maintaining proper records, your company can view its health through financial statements, such as income statements, balance sheets, cash flow statements, and more.

A salon generally has cash assets, probable accounts receivables, and prepaid purchases. However, its primary assets are called hard assets. They include items such:

  • Pedicure stations
  • Inventory on hand
  • Chairs
  • Real estate value
  • Furniture
  • Equipment
  • And any transferable licenses.

A hard asset’s value is easier to estimate from a financial perspective.

Yes! You can do basic bookkeeping and note what is mentioned above as tips. In addition, single-entry is probably the best option for you if you’re just getting started, keeping your books independently, and are still in the hobby stage. It’s quick, easy, and suitable for effortless bookkeeping. 

Double-entry accounting is more complex, reliable, and better suited for mature, established organizations. But, if you need advice and want to cut-off time doing your books, hire our bookkeeping service here at Pearl Lemon Accountants. 

If you’re interested to see more of our services here at Pearl Lemon Accountants, click HERE.

When you allow us to keep track of your finances, you give yourself more time to do your work and please more clients. It's a win-win situation for everyone. Aside from that, you'll also gain financial stability because your assets and liabilities are managed well enough not to cause any trouble for you in the future.

So let our experts work for you, and you won't regret it even a bit.

Book a call today to get started.