Bookkeeping is the process of recording all the money a business earns and spends. Good bookkeeping helps small business owners keep track of their income, expenses, and profits. One important tip is to record every transaction daily or weekly, so nothing is forgotten. Using bookkeeping software or hiring a bookkeeper can also help keep things organized and accurate.
Another piece of advice is to separate business and personal finances. This means using a separate bank account and credit card for the business. It makes bookkeeping easier and clearer, especially during tax season. Also, keep all receipts and invoices for proof of purchases and payments. With good bookkeeping habits, a business can avoid mistakes, stay on budget, and make smarter financial decisions.
