According to a survey by accountingtoday.com, 40 percent of business owners consider their accounting to be the worst part of owning a business. For business owners, accounting is often the one area that could use a little more work. Here are a few tips on how to increase your business’ accounting efficiency so that you can focus more on running your business.
These are the ways to improve business accounting efficiency
Have a system in place
One of the biggest obstacles in having an efficient accounting system is organization. Do you have a policy for tracking expenses? How often are you billing your clients? Do you have a rule in place on when to follow up for late payments from customers and clients? Without a system in place on how the financial arm of your business will operate, you accounting can quickly get out of control. Consider setting up specific policies for things like expense reporting, accounts receivables, and paying vendors. A system in place for these fiscal items will allow you entire business to run more smoothly.
Keep it timely
Set aside a time each month to review the financial status of your business. This is a time to review bank statements and ensure that accounts are reconciled. This will also highlight whether anything looks out of place and you can address issues promptly. When year-end comes around, you’ll already be a step ahead in preparing for your year-end tax filings or other compliance matters.
Accounting software and applications
If you’re using a spreadsheet or other manual method of keeping track of your business income and expenses, consider investing in a software program for your business. Programs like QuickBooks and Xero are set up to link your business accounts and credit cards, automatically booking many transactions on your behalf, saving you the time of manual entry. Most software programs also offer management reporting, allowing you to use your accounting records to make informed business decisions.
Other applications help you to keep up with your receipts making tracking expenses simple and tax time a breeze. No more desk drawers and boxes full of papers!
Hire a specialist or outsource you accounting function
If you’ve gotten to the point of your business where you have the resources to bring in an expert, consider hiring an accountant or bookkeeper.
If you don’t have the budget to hire a resource internally or simply do not want the additional overhead, consider outsourcing you accounting function to a firm which specialized in bookkeeping and accounting services.
As this is their area of expertise, you will be sure that you are in compliance with rules and regulations associated with your business.
The accounting functions are the heartbeat of a business. Without knowing how you’re doing financially, you’re essential running your business blindly. Try few of these tips to help your business s stay on track.