Struggling with your bookkeeping? It’s possible that you need a bookkeeping system upgrade! By bookkeeping system, I don’t just mean the software you use, although that is a part of it. You’ve got to dig into your system for receipt organization, your bookkeeping checklist and timeline, as well as the review process of your financial statements. If that list just gave you a mild panic attack don’t worry! First, let’s figure out if your systems need an overhaul, here are the signs:
Bookkeeping takes you forever
You're spending plenty of time on your bookkeeping but somehow it feels like you’re not making any progress. You go to find a receipt for a transaction and 20 minutes later you still can’t find it. So you give up and move on to the next one, only to have the same thing happen again. Finally, you find a receipt, save it to a pdf, store it in a folder, upload it to your software and attach it to your transaction. Another 5 minutes later and you’re ready for the next transaction. How will you ever get caught up if it takes this long every time? If bookkeeping is taking you this long it’s definitely time to upgrade your systems.
You're not keeping up with it
Maybe bookkeeping doesn’t take you tons of time, but you’re still struggling to keep up with it. Whether you’re avoiding it because it’s so tedious, or you just have a ton of transactions, you could probably benefit from upgrading your bookkeeping systems. Similar to how much more you enjoy your house when it’s clean and organized you’ll enjoy your bookkeeping process more when it’s organized. I won’t pretend that you’ll enjoy bookkeeping as much as me (nerd alert), you’ll enjoy it a lot more when your systems are simple and organized.
You can't find anything
You’ve lost all your receipts, you can’t find your tax documents, and let’s not even talk about the last time you saw your bank statements (do those still come in the mail?). If you’re constantly looking for your bookkeeping documents you need a major system upgrade. Having an organized bookkeeping system will keep all your important documents at your fingertips, speeding up your bookkeeping process exponentially.
You don't have a system
This one’s obvious. If you don’t have a bookkeeping system at all then you definitely need to upgrade your systems. It doesn’t have to be super complicated, it just has to work for you. You need to find a simple way to keep track of your transactions, your receipts, and your financial statements. The good news, if you’re starting from scratch you don’t have to unlearn any bad habits!
Now you know whether or not your systems need an upgrade, and knowing is half the battle! Next week we'll dive into your different systems.
Did you miss it?
Bookkeeping seem complicated?
You know bookkeeping is vital to the success of your business. Stop procrastinating and start getting it done with this simple checklist. You’ll get:
- A list of exactly what tasks you need to do each week, month, quarter, and year so you can stay on track.
- Tax due date reminders so you stay on the IRS’s good side
- All the satisfying checkboxes so you can finally mark bookkeeping off your to do list
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