5 Bookkeeping Skills Every Small Business Owner Needs

Are you a small business owner doing your books? Are you feeling overwhelmed by the paperwork? There must be a better way to get the books done, but you don’t know where to begin.

In the US, just over 26 percent of small business owners started their own business in order to be their own boss.

As a small business owner, you need to be in charge of your finances. Here are five essential bookkeeping skills you need to succeed.

1. Pay Attention to the Details

One of the most basic bookkeeping skills is keeping track of the details. If you are willing to reconcile every detail in your accounts without fail, you won’t miss an important deadline.

Keep a notebook and use it to make notes to help you remember information. It’s a great way to keep track of your hours so you can remember who to invoice for the work.

2. Invoicing and Bill Payments

You won’t get paid if you don’t bill your customers. Your company’s cash flow consists of both incoming and outgoing cash. If you don’t send invoices, your customers won’t support the incoming part of your cash flow.

An essential bookkeeping best practice is marking invoices paid. When you receive a payment from a customer, be sure to record it, so there is no confusion in the future.

Schedule a block of time each month to follow up on unpaid invoices. Some customers deliberately wait until you call before they make their payments.

When you’re the one making late payments, you’ll get a poor reputation with your suppliers. When they have to spend time calling you to collect their money, it’s frustrating and costs them money. They will begin to build a buffer into the prices they charge because of the extra cost.

3. Find Ways to Organize Your Bookkeeping

The art of organization is an important skill for bookkeepers. A filing system is one great way to sort the paper you receive.

Accordion files are a great way to keep track of invoices or contracts. Create file folders for outstanding invoices and sort them by the due date. This will help you pay them before they become overdue.

4. Take a Bookkeeping Skills Course

Take a course to learn the basics of bookkeeping. You can learn how to read a financial statement or the difference between a debit and a credit.

When you speak with the bank, you will be more informed, and they will respect that. One great course to consider is the bookkeeper launch review.

5. Set Deadlines for Bookkeeping Jobs

If you keep up with your bookkeeping, you won’t receive so many creditor calls or large piles of urgent paperwork. 

You don’t want to be performing detail-oriented tasks when you are in a hurry because you’re sure to make an error that will cost you time or money.

Be Confident in Your Bookkeeping Abilities

When you learn some vital bookkeeping skills, you’ll be able to streamline your activities and save yourself time. You may realize that taking care of your books provides valuable information to help you make better business decisions.

If you enjoyed learning about different skills for bookkeeping, we have more information about business education on our blog. Check it out today!

Read more: What Are the Benefits of Hiring Bookkeeping Services for Small Business?

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