While accounting is an integral part of any enterprise, the process can be relatively daunting for business owners, especially those who don’t have enough knowledge and experience in the field.
The key to a seamless and accurate accounting process is to ensure that everything’s organized. You have to be meticulous in recording and filing your documents and transactions so that you can retrieve data when you need them.
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Here are five ways to help your business organize its accounting process:
1. Invest In Accounting Software
The primary thing you should do if you want to streamline your business operations, especially with accounting, is to take advantage of today’s technology. Investing in a dedicated accounting software program can help a lot in automating some processes. It takes the load off your team and, in turn, gives them time to focus on revenue-generating tasks, like following up on accounts receivables.
QuickBooks is one of the top accounting apps on the market today. However, if you’re looking for an alternative, a quick Wave vs QuickBooks comparison can help you decide on the best software for your business’s needs. The main advantage of Wave is that it’s free, plus it provides more services than the latter’s premium subscription plan.
Automating your processes can reduce the risk of errors by manual computing or data entry. Some features that your accounting software should have are:
- Accounts Payable - This function helps you take charge of your debts so that you can complete payments promptly. You can schedule automatic calculations and payments, as well as track suspicious transactions.
- Billing - You should also look for an accounts receivable feature that allows you to create effective invoices and does automatic sales tax calculation to ensure that you receive your due profit.
- Budgeting And Forecasting - The software must allow you to create budgets and other reports right on the app as well. It should facilitate the collection and integration of data to ensure that your company stays solvent.
- Inventory - Most accounting programs have an inventory feature that helps you keep track of your products through a serial number and price management system.
- Payroll - One of the overhead costs that you should monitor is your employees’ salaries. The software must also calculate each individual’s income tax automatically.
- Cloud Storage - Nowadays, accounting apps take advantage of cloud technology, which means that you can access your files using any device. It makes collaboration more convenient for different departments as well.
2. Hire A Specialist
Aside from purchasing software that meets your business’s needs, you should also invest in people who are adept in accounting. While you don’t necessarily need to hire experts with extensive experience, at the very least, you should enlist the help of employees who have advanced knowledge of the subject.
Accounting graduates and those who have one to two years of work experience in this particular field can aid you in organizing your processes. They can provide valuable input to prevent accounting fraud and other potential money-related issues.
3. Create A Document Organization System
Your accounting software might help in recording your transactions and files, but you’ll also need to craft your own organization system. This includes having physical storage for printed receipts, as well as a dedicated schedule for scanning relevant documents and placing them in the appropriate folders.
The system will depend on your business structure and needs. It’s best to give yourself time to review your current processes and assess areas of improvement.
4. Record Everything Money-Related
Another crucial aspect that you should be doing for your business’ accounting is to make sure that every transaction has a paper trail. Don’t rely on your memory to keep track of sales and payables. Each deal must have a record. Fortunately, everything can be done digitally nowadays, which eliminates clutter on your desk.
5. Set Reminders For Deadlines
Lastly, if you want your accounting to-dos to be on the right track, you should always set alarms for your deadlines. This is particularly important for tax deadlines since the government might impose penalties and fines if you miss the schedule by even a day.
The secret to accurate accounting is organizing your processes. Investing in dedicated software and people who specialize in this field are two ways to ensure that this department stays on track with your goals. You should also make sure to record every transaction that is conducted by your company with a paper trail, whether physical or electronic, and create a document organization system to store them all in a central location. Then, set reminders of deadlines to keep everything aligned.