Finances are important and there are best practices when it comes to keeping your books balanced. Liu & Associates knows the value of well-organized finances: peace of mind and confidence to face the future. Harness these strategies for yourself by consulting our list of the best bookkeeping tips!
#1: Gotta keep ‘em separated. Always keep business and personal accounts separate for simplicity and efficiency. Crossover can incite audits and other financial consequences.
#2: Always be prepared. Track your expenses to look for spending trends and plan for unexpected costs. Being prepared won’t stop the disaster from catching you off-guard– but it will give you financial peace of mind.
#3: Read the fine print. Be extremely familiar with all of the statuses or tax implications of your accounts and investments. Avoid an ugly surprise at year-end or tax time by regularly keeping records accurate and organized.
#4: The Taxman cometh. No matter what, most people will eventually owe taxes— it’s one of the few certainties in life. Make a habit of setting aside funds for owed taxes or set up an account to pay in installments.
#5: Be on time. Pay all bills and invoices in a timely fashion. Outstanding costs can be overlooked and/or subject to expensive late fees. Set a daily reminder if needed to ensure you are paying what’s owed on time.
#6: Trends like theses. Observe spending and saving trends across your finances. Eliminate inefficient patterns and encourage or double-down on habits that have a positive financial impact. If you don’t look at the data, it’s easy to assume you’re doing a good job.
#7: ‘Til debt do us part. One basic financial rule is to stay ‘in the black.’ Some people thinks this means borrowing funds to maintain a business or lifestyle. Unfortunately, more debt is rarely helpful in the long run. Focus on cutting back to make real capital stretch farther.
After reviewing the above tips, take a look at your own bookkeeping practices to see if they are up to snuff. If you find something lacking, bring your records and financial plan into Liu & Associates for a comprehensive assessment. Our highly-skilled professionals will ensure your finances are in order.