Resolution #4: Create a Routine

When I take on a new client, who is overwhelmed with their bookkeeping, the most frequent statement they say is, "I just don't seem to have the time to take care of the bookkeeping." As we begin to work together and dig in, I realize that there is a stockpiling of work that creates a backlog - making the "catch up" time-intensive.

However, most bookkeeping transactions, when handled in a routine, are not time intensive.

Here are some key actions that, when put on a routine, can help make the process easier

• Scan and Log Receipts - invest in a simple scanner that scans directly to Dropbox or other cloud-based storage systems. Then, once a week, scan the week's receipts. At the same time, take a few minutes to log these transactions in your Accounting Software. Note: I frequently don't recommend a scanning function that works directly with your account software. It has been my experience that in the long run, these become more time-intensive :(

• Invoice- how often do you need to invoice? Monthly?Weekly? Daily? Whichever it is, set time aside on the same day/same time each interval to do it. Block the time on your calendar.

• Reconcile - monthly! It is easy to let this one slide for a month or two. However, it is my experience this is when the task grows from being simple to daunting. If you have been keeping your transactions up to date (weekly), this process should become pretty quick and painless!

• Review your reports - at least monthly! The best time is right after the reconciliation process. At that time, you know that the data you have is accurate and updated. Look at the Report Trifecta (Profit & Loss, Balance Sheet, and Statement of Cash Flow) to see how the business is going. Reports like the Accounts Payable and Receivable are better attended to on a weekly or bi-weekly basis. This helps avoid you paying someone late or letting your AR get out of hand. Conversations about late payments are better handled quickly.

SCORE did a survey in 2015 that found that most small business owners spent an average of 41 hours a year on tax preparation. Most end-of-year tax prep can be addressed with simple bookkeeping tasks, like those listed above, throughout the year. That comes out to about 3.5 hours a month - less than an hour a week. The key is to create a routine that works for you and your business.