Bookkeeping Tips To Save Your Business Money
DBASS Blog | March 2022

While bookkeeping is no one’s favourite task, the reality is that good bookkeeping is essential for all small to medium enterprises.  This is an area often neglected by businesses until the financial year-end.

Having current and accurate financial records can actually help save money for your business, making it a very important aspect of your business planning.

Here are seven bookkeeping tips to help save money for your business:

1) Employ The Right People To Look After Your Books

A bookkeeper is responsible for ensuring that all financial data for a business is correctly collated and recorded, making it available for strategic planning and compliance checks. The importance of finding an excellent candidate for this role cannot be underestimated.

A good in-house bookkeeper can assist your business with the following:

  • Management of general accounting ledgers
  • Recording of journal entries (transactions)
  • Generation of financial statements

Consider if they work well with your accountant? Ask your accountant if the records they receive are up to scratch.  Consider asking your accountant for their advice when hiring a new bookkeeper.

2) Regularly Update Your Records

Current and accurate financial information is crucial to analysing past business performance and budgeting for future expenses.  So ensure that you are updating your records regularly and carefully.

3) Be Prepared For Capital Investment

Sometime in the future you will need major capital investment. Good bookkeeping will enable you to plan for this eventuality and allow you to set money aside.

4) Invest In The Right Accountancy Software

Computerised accountancy software packages are largely inexpensive and are now widely available.  And they can be vital to analysing business performance. They also make it easier to track income, expenditure and back-up all your records. By having a robust accountancy system in place you will be able to produce a myriad of management information reports that will assist you in identifying areas where you can save money.

5) Prepare A Year-End File For Your Accountant

Having information such as fixed asset listings, debtors lists, creditors’ lists and VAT reconciliations prepared for your accountant will reduce the accountants time input and will therefore reduce your overall accountancy costs.

6) Set Aside Money For Your Tax Bill

Good bookkeeping will enable you to set aside money for your taxes so that you can pay your taxes on time and in full. This eliminates the chance of interest and penalties being levied on late returns and therefore saving you money. Good bookkeeping also promotes good compliance and therefore reduces the chance of a Revenue audit which can be costly to prepare for.

7) Keep Business & Leisure Separate.

Keep your business and personal bank accounts separate and avoid using business credit cards for personal transactions.  Doing so will ensure more transparent records which are easier to process.

With these seven bookkeeping tips you will find it easy to fix common errors many business owners make and start to enjoy the cost saving benefits.

Should you require any assistance putting these tips into action within your business, call DBASS on 01 849 8800  or <>– we’re here to help.

By Paul Doran

DBASS Partner

DBASS Chartered Accountants.

Disclaimer notice

This article is for discussion purposes only.  For further information on any of the topics covered in this article please contact a DBASS adviser on ph. 01 849 88 00.