Good Book Keeping Can Help You Run An Efficient Business

Running your business is going to be much easier when proper book keeping is being done. Keeping good books is the key to keeping your company organized for the long haul. It is important for your company to be able to easily monitor the progress of every transaction. Failure to do so can cause your business to lose a lot of money.

Never Lose An Invoice

Losing an invoice could result in lost money for your business. It is hard to force a customer to pay when you don't even know how much he owes. Your company is going to look foolish if it sends out payment notices to customers who may have already paid their bills. Chasing customers who may have already paid is just plain unprofessional. Engaging in this type of behavior is going to alienate anyone who was looking forward to doing business with your company in the future.

Keep Track Of Customer Orders

Customers may have specific requests for a product they purchase from your company. A birthday cake may need to have a unique message written on it. An order for 29 balloons may require that six of them are red. Sloppy record keeping could cause you to lose the order in a pile of other paperwork. Your customers will not be pleased when they do not get what they are paying for. This is another easy way to lose business for your company.

Monitor Employee Shortages

Employees may be tempted to steal from your cash registers. A good system of accounting for all the cash in the till will stop that before it starts. Any discrepancy can be easily tracked when a proper system of record keeping is in place. Employees who steal money can be disciplined before too much money is lost. Documentation will also be required if you wish to terminate an employee. Therefore, keeping track of everything that goes on will allow you to get rid of an employee who is hurting the company.

Separate Personal And Business Spending

Separating your personal and business spending is important when trying to do your taxes. Keeping a dedicated record of your business expenditures will allow your business to deduct the maximum amount of money each year. Not knowing whether that trip to Florida was for business or pleasure could cause you to not take a legal deduction. An easy way to keep track of business spending is to upload all receipts to your computer. It will allow for an easy process of organizing all your business receipts.

Having a system of thorough record keeping can help your business run with increased efficiency. There will never be any question as to what your customers want when they order something. Keeping track of invoices will be made much easier. Employees will be held accountable for their actions when you can prove any breach of company policy. Making sure that good records are being kept will enable your company to be run in a professional manner. A professionally run company will always be more profitable in the long run.

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Michelle Reynolds has helped hundreds of business owners understand how to improve their company finances - from her 20 years working as a corporate Finance Director to years mentoring start up businesses she uses this experience to guide business owners through their accounting process. http://www.thefinancementor.com is a range of online book keeping courses which take you step by step through the process - it's easy when you know how.

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