Clare Louise 
San Antonio businesses need to keep their financial data up-to-date and accurate in order to be successful. Businesses handle countless transactions every day, and it is important to record each one of them. However, for many small business owners, tracking every sale, expense, and adjustment can feel like a time-consuming job.
As an owner, you may already have a lot on your plate. Accurate record-keeping is also crucial for tax purposes, especially in a state like Texas, where tax laws are so strict. To ensure that your financial reporting is on track, get bookkeeping services in San Antonio for your business.
Steps to record daily transactions for your business
- Choose the right accounting method.
There are two main accounting methods: cash basis and accrual basis. In cash basis accounting, the transaction is recorded when you exchange the cash. This is a very easy method, and many small businesses use it.
However, accrual accounting records transactions when they happen, not when money is paid or received. This method provides a more accurate picture of your business’s financial health. If you have a small business, you can go for a cash basis; however, if you have to deal with complex transactions, an accrual basis may be ideal for you.
- Set up a chart of accounts.
A chart of accounts is a list of categories that are used to organize your transactions. It can help you divide transactions into different groups, such as assets, liabilities, income, and expenses. This system helps you organize your finances and makes it easier to create finance reports and file taxes.
- Use accounting software or tools.
You can also use accounting software and tools for recording your business’s daily transactions. It automates many processes, reduces any errors, and saves you time. It can handle everything from expense tracking to generating reports.
Moreover, accounting tools such as QuickBooks, Xero, and FreshBooks have a user-friendly interface and provide the best features for tracking expenses and payroll management.
- Record income transactions.
One of the most important parts of financial record-keeping is tracking your income. It is very important to record every sale, service fee, or other revenue immediately. If you have cash sales, note the amount of money received and the date of the transaction.
However, for credit sales, record the amount and the customer’s payment terms. This helps you understand your cash flow and manage your business’s financial health.
- Record expense transactions.
Every business has expenses, from rent and utilities to supplies and employee wages. It is also important to record all expenses accurately to be aware of your business’s financial health.
You should categorize each expense, such as office supplies, utilities, and so on so that you can track where the money is going. Regularly reviewing your spending can also help you find areas where you can cut costs and make more profit.
- Keep track of receipts and invoices.
Receipts and invoices are important for verifying income and expenses. Receipts show you have paid for something, while invoices show that money is owed to your business. It is very important to keep all receipts and invoices in one place, either in physical form or digitally. It is also important for tax purposes because the IRS may ask you for proof of certain expenses.
- Reconcile daily transactions with bank statements.
Reconciling your accounts means comparing the transactions you recorded with the transactions your bank shows. This ensures that your records are accurate and up to date.
Match your income and expenses with your bank’s deposits and withdrawals. If you find any mismatches, review and correct them. Regular reconciliation allows you to catch any errors and identify fraudulent transactions early.
Ensure spot-on record-keeping for your business!
With the help of bookkeepers, business owners can stay on top of their financial records without losing focus on their main responsibilities. Hire a bookkeeper today.
