Over the years I have noticed and met some extremely good bookkeepers and accountants (I have also met some who are not as good!). This post is dedicated to my top 5 tips to becoming a great bookkeeper...
Bookkeeping Tip #1 - Always use Suitable Accounting Software
I have seen many large businesses struggle to keep their accounts on Excel or a similar package, this is both time consuming and mind numbing. I have also seen new and small businesses pay out for unnecessary extensive accounting packages, this can be a total waste of money. If you have a large business than purchase adequate accounting software, if you are a new or very small business then consider Excel or a low-cost simple accounting package...
Larger Business should consider a package like Sage Accounts - Click here for details
If you are a new or small business and plan to use Excel, please visit our accounting with excel page
If you are a new or small business and would like a low-cost accounting package, please check out KashFlow
Bookkeeping Tip#2 - Gain an Accounting Qualification
Some of you may know everything from double entry bookkeeping to calculating corporation tax but have very limited knowledge about the accounting software package that you are currently using. Some of you may know your accounting software package inside out but have a limited knowledge of bookkeeping and accounting principles. Either way you should seek to gain an accounting qualification and expand your horizons. Need to know more about Sage? Then take a course in Sage. Need to know more about double entry bookkeeping? Then take a double entry bookkeeping course.
Bookkeeping Tip #3 - Be a 'Tidy' Bookkeeper
Ensure that all accounts are reconciled and kept in good order. It is now becoming more common that the main current bank account is reconciled periodically, this is good but it is not enough. Supplier accounts will need reconciling using supplier statements, customer accounts need reconciling also. If the business has a VAT account and other bank accounts, these will also need reconciling. Don't forget the petty cash account either!
If you have any questions about performing these takes, please subscribe to my bookkeeping and accounting email support and email me at firstname.lastname@example.org
Bookkeeping Tip #4 - Always Seek to Become Better
If you are a member of an accounting body (like the ICB, AAT or similar) you can attend local events that will cover specific accounting related topics, I suggest you attend these. If appropriate I also suggest taking further accounting courses and seeking to better your accounting knowledge and experience. If you are able, take on a 2nd accounting job, there are usually family and friends who need a helping hand with their accounts.
Bookkeeping Tip #5 - Learn and Provide Monthly Management Accounts
If you don't know how to compile management accounts then please learn to do so. I have a basic management accounts course, please click here to start it. Providing monthly management accounts for your clients or employer will add to your accounting experience and will help others know how valuable you are. It can be hard to see the importance of bookkeepers and accountants when 'all' they do is number crunch, provide a profit and loss statements along with other management reports and people will start to realise what an asset financial record keeping is.