1. Do it yourself. This works if your business is relatively small, you are not intimidated by numbers, and you are thorough in recording every financial transaction.
2. Get bookkeeping software, whether for yourself or for a paid bookkeeper. It reduces time, and therefore money, spent on this function. Free low-end programs are available if your transactions are not too complicated, and ones with more features are reasonably priced. Look into online software if more than one person will be entering data.
3. Use online banking where possible. Not only does it reduce the cost of postage and checks, but it is faster and easier to correct errors as they occur. Often banking information can be downloaded directly into your bookkeeping program, saving even more time.
4. Use a contract bookkeeper rather than hiring someone just for bookkeeping. The hourly rate will be higher, but you will not have to pay all the taxes and fringe benefits associated with an employee.
5. Never completely trust any bookkeeper, including yourself. Everyone makes mistakes, even banks, so a second pair of eyes is invaluable. In addition, many otherwise good people can be tempted to embezzle when faced with serious personal financial problems.The information party rocks on: Bookkeeping sucks.