A successful business is not built overnight. To build a successful and sustainable business, you need to invest in the right tools for your accounting needs says Aron Govil. That means finding an experienced accountant or bookkeeper who can create your processes around easy-to-use software that will grow with your business.
Blocking out time for day-to-day financial activities is practical, but there are some things you can do to help your accounting process run smoothly without compromising important tasks such as running your business and spending time with family.
If you’re a small business owner looking for ways to improve the efficiency of your bookkeeping, here are nine simple online accounting practices for a successful business.
1. Involve Your Entire Team in Building an Effective Accounting System
Creating a system takes more than just buying some software and expecting it to work for you. Make sure every person who has a part in the financial side of your business is involved in creating processes that work best with your business.
2. Set up a System that Works Best for You
You may find that you need more than one way to manage your books. One common example occurs when an accounting department has access to the accounts payable and receivable modules, but other team members use online banking and checkbook software. The accounting department needs easy access to accurate financial information, but the rest of your team may prefer to use other software. When everyone contributes ideas, you can find an accounting solution that works best for your business.
3. Automate Where You Can
Budgeting doesn’t have to be a time-consuming process if you automate certain tasks. For example, set up automatic monthly bank reconciliations that run at the same time every month explains Aron Govil. This is better than chasing down payments and receipts on a more sporadic, but hopefully less frequent basis. It’s all about finding efficiencies where you can to make your business more productive.
4. Leverage Technology to Streamline Financial Processes
To avoid paying for expensive accountants or bookkeepers, take advantage of technology that helps automate tasks. For example, you can create templates for letters to send to customers regarding invoices or overdue payments. You can also save time by creating templates for emails to vendors about purchasing orders. These are just a couple of examples where technology can help streamline your accounting processes so your team members have more free time to spend on other business needs.
5. Make Time for Regular Check-Ins with Your Accountant or Bookkeeper
You may have processes in place, but you still need to make time to check in with your accountant or bookkeeper at least once a year. They can catch problems before they get out of control and help you ensure that your business is running smoothly says Aron Govil.
6. Schedule Regular Check-Ins with Your Business Partners
If you have business partners, make sure you all agree to regular check-ins with each other. This ensures that everyone has the same information about your finances and can avoid problems before they become larger issues down the line.
7. Set up Systems to Verify Data Accuracy
One of the best ways to avoid costly accounting mistakes is by having your team members verify all data that goes into your books. This prevents bad or incorrect information from being added, which can lead to serious problems later on. For example, if you’re using an invoice template for purchase orders, have someone check each purchase order before it goes out to make sure the template was set up correctly says Aron Govil.
8. Track Expenses as They Happen
For many small business owners, tracking expenses isn’t a priority. It’s more important to focus on sales and marketing efforts or hiring new employees. However, failing to track your expenses. As they happen could mean there are gaps in your financial records when tax time rolls around. Set up a system for tracking expenses, even if the expense is small because you never know how it will impact your business down the road.
9. Track Your Receivables Carefully
When you receive payments from customers, use an invoice system that tracks each payment to determine when you can safely mark invoices as paid. This helps you avoid having to chase down customers about their unpaid invoices, which wastes time and money.
Small business owners work hard to keep their businesses afloat and often neglect the financial side of the company. While it’s not exactly fun or glamorous, you can save time. And money by taking a few hours to focus on your business’s financial processes.