Tired of Business Accounting Headaches? Try These 5 Tricks
Accounting is a necessary component of running a successful business, but it can often be a daunting task. Consider these five tips to prevent your business accounting workflow from falling behind.
- Use Credit Cards As Much As Possible
Credit card companies automatically track purchases and payments and provide you with online statements each month. This reduces the amount of manual data entry and calculation you have to do on a daily basis. However, make sure you still have a manual system set up for processing cash or check payments.
- Reconcile Accounts Receivables
Track every invoice you send out and make sure your customers pay you on time. Be strict about late payment policies and send reminders to customers about when their payments are due. To streamline your business accounting process, use an automatic bill pay service to send email invoices, deduct payments from customer accounts and issue reminders and receipts. The more you automate and send electronically, the more time and money you save. Plus, customers are used to paying their bills online these days, so online and automatic services make it easier for them to pay on time.
- Keep Detailed Records of Inventory and Sales
In addition to tracking income and payments, maintain good inventory and sales records in order to reconcile cash flow and uncover leaks in your processes. Be sure to document the date, item, stock code, quantity, amount and other important notes to protect yourself against missing items and conflicting balance sheets.
- Schedule a Block of Time for Bookkeeping
Whether or not you enjoy crunching numbers, you need to set aside time for business accounting tasks. The best way to stay on top of your finances is to schedule an hour each week to enter manual data, review credit card transactions and evaluate your budget. You should also schedule monthly, quarterly and yearly reviews. Put these dates and times into your calendar and set reminders just as you would for any other important meeting or task.
- Hire a Professional Accountant or Bookkeeper
If you find yourself falling behind or prefer to spend your valuable time elsewhere, you can always hire a professional to manage your finances for you. A professional accountant or bookkeeper can save you time, money and stress in the short and long term.
There are plenty of ways to make business accounting easier on yourself. By taking advantage of third-party automation tools and professional accounting services, you can prevent many headaches in the future.