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Successful businesses are known to follow certain practices for bookkeeping. If you intend to be successful, it is recommended that you do the following practices annually.
1. Set up a chart of accounts that best keeps track of all your bookkeeping information.
Worksheets, income statements, balance sheets and everything else that goes into bookkeeping is defined by the chart of accounts. Good ones are ones that track every account that is required for bookkeeping from cash to expenses.
2. Balance and record daily sales and cash receipts daily.
To keep organized, balancing and recording daily sales and cash receipts must be done daily. This makes sure that all information is current and reliable.
3. Reconcile your bank account.
There may be changes in the business’s bank account which are not recorded in its books. This is why bank reconciliation is important, it ascertains the differences between the business’s bank account and the business’s accounting records, and it makes sure that the business is aware of the changes to its bank account.
4. Watch closely your accounts receivable from customers.
Follow up on your customers’ debts and make sure that you record each one. Good businesses know how to manage its accounts receivable. Great businesses monitor them closely like a hound on the hunt.
5. Pay your bills accurately and on time.
For the purposes of keeping your books tidy and orderly you must pay your bills accurately and on time. Not only does this make you less likely to incur additional expenses but it keeps your books on track and organized.
6. Set up sales and revenue targets and monitor your progress closely.
Businesses who wish to succeed are businesses with a goal. Success only comes to those who know what they want and work for what they want.
7. Budget for all your expenses and compare your performance to budget regularly.
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