Proper and timely bookkeeping is imperative to fully understand the state that your business is in at a moment in time. Additionally, reports are generated to make important business decisions. If the information on the report is skewed because of poor transaction documentation, those important decisions will be based on false information and can lead into bad business decisions.

How do you ensure that your company is performing proper bookkeeping?

  1. Consider your industry and your business needs. When looking into what will be necessary to account for, consider things like payroll and expense tracking by job, tracking by asset, or inventory.
  2. Observe all the inflow and outflow of cash. Using inflow/outflow transactions as well as what expenses you need to track, you can begin to see what accounts you will need to make up your chart of accounts. These accounts are your primary accounts in your chart of accounts. Every cent needs to be accounted for and categorized into the appropriate account.
  3. If necessary, to further clarify the expense, create a sub-category for the account, example:
    1. Repair & Maintenance (PRIMARY)
      1. Oils, Fluids, and Additives (SUB)
      2. Small Tools & Accessories (SUB)
  • Tires (SUB)
  1. Set your bookkeeping schedules and stick to them.
  2. If you are finding that bookkeeping is too overwhelming or time consuming, It will not be to your advantage to take shortcuts. The best business decision you can make is to invest in a great bookkeeper.

Business By FR8 is well equipped to make sure your bookkeeping is done correctly and on time. We provide off-site bookkeeping services for any industry.