3 simple habits to tame your accounting troubles

6 June, 2018


 

Are you struggling with keeping up with your day to day accounting activities? Most business owners do, especially start-ups. Bookkeeping can be painful to maintain.

 

3 simple habits to tame your accounting troubles

 

Accounting works are made up of small bite-sized tasks. So it is very tempting to put it off until tomorrow. But that tomorrow can be many months away and then you are suddenly faced with a mountain of a task dealing with all the receipts, payments and more. Here’s what you need to do…


1. Record your transactions daily

Cultivate a habit of completing all the accounting tasks immediately. Don’t wait!

It only takes less than three minutes to issue a payment voucher or update the cash receipt into your cash book. Leaving it for ‘tomorrow’ will only make you lose momentum and motivation. You might even lose important documents and forget about some of the transactions you have made.


2. Use simple Excel spreadsheet

Update all your transactions into Excel spreadsheet using nothing more than just these four columns that will make up your Cash Book.

  1. Amount
  2. Date of Transactions
  3. Details of Transactions
  4. Balance in the Cash Book  

You can also create another spreadsheet for your petty cash movements.

Having a simple cashbook will give you a snapshot of your exact cash situation at any point in time. This is extremely important in business.


3. Record all outgoing payments with Payment Vouchers

You can buy generic payment vouchers from a bookstore. The payment vouchers help you to keep track of the date of payments, amount paid, mode of payment and signature of the recipient.

Ensure that you serialise the payment voucher with numbers such as PV1001. Keep all the documents in running order to detect missing documents easily.



There is an alternative

If all these sounds too much for you, we understand. You need to be on top of your business and not focus on the nitty-gritty.

So why not subscribe to MYOB Accounting or Xero Cloud Accounting. It is one of the most reliable and easy-to-use software in the market for SME's accounting needs.