Data Organization Tips for Small Business Owners!
It can be tempting to jump in head first when starting a business, but it's important to keep organized records. To help with that, we've laid out a few tips that will prevent future headaches.
1. Use accounting software for your bookkeeping.
Investing in accounting software can seem like a waste of money if you're confident in your excel skills, but accounting software is designed to make bookkeeping easy and streamlined. Messy excel workbooks can lead to your accountant missing opportunities to save you money, costing you substantially more in tax bills.
2. Have a system and stick to it.
You need to have a data management system. It can be as simple as having folders for different categories of information and labeling all files as to their contents or substantially more robust depending on the needs of your business. The important thing is that whatever your system, you stick to it.
3. Back up your data.
Having all of your important financial documents on one computer is convenient but also dangerous. If you keep your information at your office, store a backup hard drive at home to have copies of your data in case of disaster. Backups should be made on at minimum a quarterly basis.