How To Maintain Your Financial Records Without Going Insane?

Running a business successfully involves efficient decision-making. 

And what helps you do so?

The answer is ‘accurate financial records.’

You can prevent tax problems, manage cash and minimize losses if you can maintain your financial records. In other words, you can protect your business with accurate financial record keeping. 

How to Maintain Your Financial Records?

Financial record keeping is about how you store and use the financial information of your business. The records consist of contracts, legal documents, business goals and source documents. 

Here’s how to maintain your financial records hassle-free: 

1. Create a business account 

You should always keep your personal and business accounts separate. 

You may think you will remember the personal expenses. But, things may seem amiss when you try to calculate your business finances. 

Thus, create a separate business account first. It will help you know how much money is going where, when and why. It is easier to keep track of the expenses when you do all the transactions from a single business account. 

Here’s what you need: 

  • A business checking account 
  • A merchant services account 
  • Business savings account 

The problem is opening a business account is no easy feat. The process is however easier and simpler with an experienced accountant by your side.

2. Keep all accounting documents handy 

Business owners often procrastinate when it comes to maintaining financial records because the task may involve heaps of paperwork. You should have all those documents that explain every business transaction that takes place. 

Common financial documents you need: 

  • Credit card statements 
  • Receipts of sales and services 
  • Invoices for any business purchases 
  • Tax return documents 
  • Bank account statements 
  • Records of stock purchases 

All in all, you need all those financial statements that reflect your overall business expenses. All records should be no more than six years old. 

3. Review the expenses 

You know which data is required for financial record keeping. But, you need to refine the collected data to make sure your records are precise and accurate. Examine the numbers to understand how your business expenses accumulate. Reviewing expenses also prevents errors, thereby maintaining accuracy. 

4. Put the data in a usable form 

It is not enough to collect your financial data to maintain accurate financial records. You should arrange the data into a usable format as well. This helps you avoid any mishaps when you review the collected information. 

Sort out the business expenses every month. You can seek a professional bookkeeper’s help since this task is considerably time-consuming. 

5. Hire a professional accountant 

It is anything but easy to maintain the financial records of a business. Things become easier when you have a trustworthy accountant by your side. 

Professional accountants can keep track of your business records for you. Share your business goals with the accountant and let them provide you with accurate financial records every year or month at your convenience. 

Wrapping Up, 

There is no alternative to maintaining accurate financial records when it comes to achieving business success. This monotonous task protects your business and helps you stay on top of your game. You can adopt a smart move and hire an accountant to handle these tasks. 

At Border Bookkeeping, our experienced accountants keep a precise and accurate record of your business records. We use advanced software to maintain your financial records with the utmost precision. 

Border Bookkeeping