3 Tips to help you manage your Bookkeeping
1 – Be Consistent
Two of the fastest ways to muddy a financial report is
(1) duplicate expense accounts and
(2) inconsistent categorization.
Think about it – how can you track your expense patterns over time if you pick (or create!) a different expense category every month for your car insurance payment?
One way to help this is to have a lean Chart of Accounts (avoid the temptation to set up a million sub-sub-accounts!)
And always look back to how you categorized it before so you can put it in the same category again.
2 – Use Automation Tools
This will assist you to save time on manual input as well as human error.
3 – Reconcile Monthly
It’s always better to categorize your expenses while you can still remember what they are (because, honestly, who remembers what that Takealot purchase for R235 was from 11 months ago??)
Just by implementing the above three tips you’ll be able to:
Easily make the most of every possible tax deduction
Compare your monthly and yearly financial reports, spot patterns (and problems!) at a glance
And generally, turn that fresh juicy data into some tasty real-world profit-making business strategies