April 2021

So, AP kicking your tail? Hard to keep up with the bills, the due dates, the changes in pricing?  

Here are my favorite accounts payable tips to make this part of your business easier:

GO PAPERLESS

Most vendors offer an option to email your invoices – so take them up on it.  It’s a faster and easier way to keep track of your vendor invoices.

AUTOMATE PAYMENTS

Many vendors – especially for recurring charges – will automatically bill you every month.  And even if they don’t offer that service, you can still easily set up recurring payments in your bank’s bill pay feature.

️ AUTOMATE INVOICE ENTRY

And, if you’re ready for an automation upgrade (and time saver), invest in something like “Bill.com”. It’ll automatically scan your invoice and fill in everything you need, from the due date of the invoice to the date of payment.

And I promise you – even though these are simple solutions, they have big benefits!

On-time payments lead to happier vendors (and more flexibility when you need an extension, or to renegotiate)

Don’t forget – the federal tax deadline is coming up on May 17th!  Is your small business’ bookkeeping up to date and ready for it?  

If you’re not sure, here are 5 quick tips on how to double-check – and get up to speed!

(1) Are your personal accounts (and expenses) mixed in your business records?

Do you have personal accounts connected to your business Quickbooks?  Or a lot of personal expenses running through your business accounts?  Both are big no-no’s!  Try to keep them separate – and make sure all personal expenses are correctly categorized as “owner’s draw” if an LLC or “Shareholder’ Distribution” if a corporation 

(2) Got a lot of negative numbers?

Now, for your loans and other liabilities, this is ok.  But otherwise, this is usually a red flag, especially when it comes to the assets for your business!  Always dig a little deeper into negative numbers to figure out what’s going on 

(3) How old are your unpaid invoices – both for clients + vendors?

There are a couple of reports you can run for this: the “Customer Balance” and the “Vendor Balance” report.  What invoices still have outstanding balances?  And how old are they?  If you’ve got a lot +90 days past due, you probably have some updating to do!

Would you like to keep more of your money in your own pocket? 

Here are 3 bookkeeping tips to help you increase your profit – and put more money in your pocket – without increasing your prices:

(1) DOUBLE-DOWN ON YOUR CURRENT CUSTOMERS

Did you know that it’s 5 times MORE expensive to get a new client, rather than just to keep your current clients happy and buying? So focus on meeting their needs and selling more to them first.

(2) AUTOMATE YOUR PROCESSES

Time is money, right? And if you get the right automation and software set up (like Zapier or QB), you can save HOURS of time.

(3) LOWER YOUR COSTS. 

Where can you bring down your operating costs (COGS)? Can you find cheaper suppliers, or get wholesale rates? Can you spend less on shipping or incur fewer expedite fees? 

(Also, you can just pick up the phone and see if your vendors are willing to give you a discount or special offer for your business. Especially those you have been with for some time!)

Not too hard

… But I do admit – some of these do take a little time to chase down or set up.

Quick pop quiz!  Do you know how often you should be doing your small business bookkeeping? 

Is it:

(A) Every week?

(B) Every month?  Or

(C) Once a year in a panic when your accountant asks about it at tax time?

Now, hopefully, you already know it’s not C (even if that’s the way it may happen for you most years!)

The answer is (B), every month! (At the bare minimum) 

But … do you know exactly which bookkeeping tasks need to be done … and when?  

For example, some bookkeeping tasks only need to be done every quarter – and others should be done every week or every day!

In case you’re curious, here’s a quick checklist summary of what you should be doing and when:

  DAILY – Check your bank account

  WEEKLY – File receipts, review and pay vendors, prepare and send invoices to clients

  MONTHLY – Reconcile your bank accounts, review past due invoices, review financial reports

So, be honest – how many times have you been given unsolicited advice … by people who have absolutely NO business giving you advice?

Dog owners telling you how to parent your kids (because they think the same advice applies to kids and dogs)

Your mother-in-law telling you that you need to update your hairstyle (even though she still wears a 1960s beehive)

Your friend who’s had the same corporate desk job for 11 years and says, “Let me tell you what you SHOULD be doing in your business.”

And if you really did have questions about parenting, hairstyles, and growing your small business … they are probably the LAST people you’d talk to, right?

Because they just haven’t been where you are.

And especially as a small business owner, you want to work with people who really GET the entrepreneur life: the highs, the lows, the creativity, the difficulties – the whole picture.

Guess what?  I do – I get it because I’m an entrepreneur, too

And that makes me a better bookkeeper – way beyond the numbers – with all of my clients:

No need to feel guilty for falling behind – I’m here to help you, and know first-hand how hard it is to keep all the plates spinning in a small business