Bookkeeping 101: Money management for the laundry business
Bookkeeping doesn’t exactly rank high on the list of fun things to do as a business owner. However, accurate bookkeeping is a must for any entrepreneur and small business, and it is incredibly important for those who want to grow their ventures in the near future.
The benefits of bookkeeping include:
- Improved organization
- Financial predictions
- Tax compliance
- Accurate spending
- More financial awareness
In the laundry industry, it is vital to know about profits, revenue, expenses and other related elements. You want to be able to plan ahead and ensure your business remains solvent, and bookkeeping is the first step toward accomplishing that goal.
Here are a few tips for how you can improve your business’ bookkeeping:
1. Manage your time
Bookkeeping can be a time-consuming process. You want to dedicate the right amount of effort, but you don’t want it to interfere with your other duties or become an undesirable chore.
That is why the first step toward better bookkeeping is time management. For starters, set aside a block of time each week to look over your books. You may only need an hour or two, but creating a set schedule will help you remain focused and ensure you don’t let this task slip by.
2. Get the right tools
Bookkeeping can be made a whole lot easier with the right tools in place. Technology today is designed with bookkeeping in mind, like software and mobile applications that allow you to check in remotely.
Gone are the days of bookkeeping with paper and pencil. Tools like QuickBooks or cloud computing can help you out with your accounting needs. Give a few options a trial run when you are getting started, and don’t be afraid to try out new technology that may give you an edge.
3. Organize your records
You won’t be able to perform accurate accounting for your laundry business without the right records. One key money-management tip is organization.
You can begin by tracking down all related financial documents. Then, store these in one easy-to-access location. Naturally, online is better, since you can view these files from various devices and at any time. Keep items in neatly labeled folders and make sure you hang on to all business receipts, invoices and other expense documents for later review.
4. Ensure tax compliance
Tax season can be one of the most frustrating times of year for a small-business owner. To make matters more confusing, there are many additional deadlines for business taxes in addition to the April deadline for personal taxes.
“Let bookkeeping make other aspects of your business easier.”
Therefore, take note of all related tax deadlines for your business. You may also want to create a separate fund just to deposit future taxes into. A little bit throughout the year can ensure you have enough to pay taxes and won’t have to find other ways to come up with that money. Non-compliance with the IRS and the Department of Labor can be a major headache for a business owner.
5. Plan ahead
Planning ahead should be a key part of your bookkeeping efforts. Your expenses are one item that should be on your mind – track upcoming purchases, payroll costs and other factors that will impact your business.
Knowing what’s coming around the corner will naturally help you prepare, plus it will also give you time to research loans and other financing options, if needed. It is also beneficial to create a detailed calendar of your business expenses, even looking as far as a few years into the future. The last thing you want is to have a major cost creep up on you.
All in all, good bookkeeping is the foundation of strong money management for a small business.