A good bookkeeper is only as good as the information provided by their client. Your small business should put some basic policies in place.

Best Practices for In House Bookkeeping

• Owner has a complete list of everyone’s logins. Everyone should have their own credentials (key-holders should be limited)

• Spreadsheet or Binder list of tools, equipment and computers…etc (date of purchase, cost)

• Employees & owners should be checking in/out tools/equipment with a recording system in place

• One person should be checking out customers at a time. All invoices posted at time of check out. Pay type reports and sales report totals should always match

  • Have a process for taking down payment/deposits on invoices over $1500

• Know your merchant processor and how their reporting is being kept track of. Batch out your credit card machine daily to match with bank deposit. Price check processors at least each quarter

• Cash drawer policies should be in place and cash balanced at the beginning and end of each day.

• Bank deposits with slip details should be once or twice a week. These should be supplied to your bookkeeping professional

• Your Management System should be password protected so no one but the owner can change the backend of the system.

• All employee job times should be tracked. These should be tracked by them as well and balanced at the end of each week.

• Parts/materials not used should be returned on the daily and tracked by one person. This is one of the biggest wastes I see as a
  bookkeeper. Materials not being returned in a timely manner for vendor credits

• Make sure your bookkeeping professional knows of all purchases over $2500

• Keep all hard copies of receipts of purchases

• Match all bills, invoices and returns with vendor statements weekly

• Write a handbook for your business mapping out all benefits, expectations and job descriptions. Make sure all employees receive a copy and sign an acknowledgment agreement stating they have read the handbook

• Have discharge procedures in place. Mapping out first, second and third warning for dismissal from your company

Consulting and Organizational Tips are a Call Away

Putting these few procedures in place can save a shop thousands over the year. If you need a few more tricks to help streamline your shop and understand your numbers contact Jacki Kiss at jacki@highwaybookkeeping.com.