Online Courses: Bookkeeping Tips Every Bookkeeper should Know

[dianamorales]

- Do a weekly entry of all invoices. Set aside time once a week to update the financial records regardless of how many invoices came in. In this regard, it is particularly helpful to use an online system as it has provisions like auto-fill forms and useful drop-down menus that are only a click away.

- Bank statements should be reconciled monthly with the cash flow statement to make sure that both correspond with one another. It is best to separate the tax from each transaction received and to put this in a separate account earmarked for taxes only. This is so when it comes to file taxes, you would have the money ready and with possibly a little left over to reinvest into the business.

- Keep in mind that cash flow is not constant at all times. It varies and may at times come and go. Be sure to monitor this regularly so as not get caught off-guard by charges for insufficient funding when paying creditors.

- Be vigilant in monitoring receivables from clients. Though it is idyllic to have clients who pay their bills on time, this is not always the case. It is best to follow up on clients with invoices that are past due.

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[Dave A]

Kinda interested in how everyone else feels about these "tips". I certainly have some reservations.

- Do a weekly entry of all invoices.

If any of my staff responsible for generating invoices generate the invoice any later than the day after the service was provided, I kick their ass.

Set aside time once a week to update the financial records regardless of how many invoices came in.

My tip: A little attention to terminology can avoid a heck of a lot of confusion.

In my world, invoices are something we send to customers. Do yourself a favour and get in the habit of calling the invoices you receive from suppliers something else. Bills, accounts payable, cash slips...

In this regard, it is particularly helpful to use an online system as it has provisions like auto-fill forms and useful drop-down menus that are only a click away.

Just use an accounting program full stop, dammit. You're a bookkeeper. Get the right tools for the job.

Bank statements should be reconciled monthly with the cash flow statement to make sure that both correspond with one another.

That is going to be a neat trick. Do you even know what a cash flow statement is?

Reconcile your bank statement against your accounting program's bank account register (or equivalent). Any accounting program worth its salt will have a good tool to assist in this process.

It is best to separate the tax from each transaction received and to put this in a separate account earmarked for taxes only. This is so when it comes to file taxes, you would have the money ready and with possibly a little left over to reinvest into the business.

I've heard this suggestion before and it sounds tedious. Which taxes are you talking about?

Personally, I'd rather invest the time this procedure is going to eat up in paying attention to my cash flow forecast - and have some discipline in terms of how I expend the funds in the business bank account.

Keep in mind that cash flow is not constant at all times. It varies and may at times come and go. Be sure to monitor this regularly so as not get caught off-guard by charges for insufficient funding when paying creditors.

Yeah, tell me about it. That's why I place more importance on having a cash flow forecast than operating a separate bank account for taxes

Be vigilant in monitoring receivables from clients. Though it is idyllic to have clients who pay their bills on time, this is not always the case. It is best to follow up on clients with invoices that are past due.

No argument there!

[Mike C]

I thought it a bit irrelevant coming "out of the blue" like that.

[tish23]

Interesting and a TON of info!!