A critical part of effectively running your Santa Monica business is staying on top of your books. That means recording sales, payments, inventory and expenses accurately and in a timely fashion. Below, we’ve put together a list of basic bookkeeping practices to promote a healthy finacial future for your business. Whether you decide to complete these bookkeeping tasks yourself or outsource it to a bookkeeping company, always keep in mind that this is a necessary part of running your business. Waiting until tax season to start implementing them can hurt your bottom line throughout the year and even more during tax season.
Santa Monica bookkeeping tips:
- Accurately classify your employees and independent contractors. Employees usually have employment taxes, while independent contractors usually don’t.
- Stay on top of your petty cash. It can really add up!
- Keep your personal and business accounts separate. Helps you stay organized.
- Have a solid plan for clients who don’t pay your invoices on time. 30-60-90 day notices.
- Save your receipts and do a reconciliation at the end of the month to see if the $$ matches up.
- Maintain a healthy cash flow. Managing your cash flow can help you avoid the stress of late credit card fees because a client doesn’t pay you on time.
As a business owner, you have to decide where your time can be spent most effectively. Is it planning and growing your business, while outsourcing your bookkeeping services to a professional bookkeeping company like Mooneem? Our Santa Monica bookkeeping services have helped businesses just like yours grow their bottom line because of sound bookkeeping practices.