Bookkeeping can be both time-consuming and complex.
Obviously, streamlining your work has major benefits for your business. You can sort your records in less time than ever before, ensuring everything is done correctly. With all the extra time on your hands, you may even be able to grow your business.
Now the question is how do you build time efficiencies into your processes?
These bookkeeping tips will help you become more efficient with your time when managing the books for your small business.
Use Bookkeeping Software
One of the most common things for small business operators to do is use Excel spreadsheets to keep the books. This is better than paper records or no records at all, but it just isn’t that efficient.
It might be time to invest in specialized software. Using a program designed to meet your needs is going to help you save time and keep records more efficiently.
Think about it. Have you ever had to repeat a task time and time again, then wondered to yourself if there was an easier way to do it? Chances are specialized software will help you save time on these tasks.
Update Your Records Regularly
In an ideal world, you’ll update your bookkeeping records daily. Although it seems like it might be more work, it could save you time in the long run.
Entering debits and credits when they happen is far more efficient than entering them all at the end of the week or at the end of the month. You may misplace receipts or forget particular amounts, which can lead to errors and omissions in the books.
If daily isn’t possible for you, try to update the records at least once a week. Closing out the books at the end of the month can be more efficient when you’re already on top of everything.
Automate Your Payments
New technologies, such as payables platforms, can allow you to accelerate your payments and save time and money by leveraging faster more efficient payment options. Some platforms even let you use your credit card to expand cash flow opportunities.
Reconcile the Accounts
Do the accounts balance at the end of the day? If you’re short or over in an account, you want to see where that money went. Is it hiding in another account, or is there an error in the books that needs to be resolved?
Reconciling the accounts should happen as often as possible, but many business owners neglect this task. It’s much easier to reconcile accounts for one day than to try and go back through 30 days’ worth of transactions at a time—or worse, a year’s worth of records at tax time.
Take a few minutes and reconcile the accounts at the end of the day or the week, just as you update the ledgers. This will help you spot problems and resolve them sooner, rather than later.
Even better, use a payables platform to automatically reconcile your accounts, with no effort on your end. These platforms can connect to your accounting software, such as Sage or QuickBooks. Any payment that is made via the platform to pay for expenses, vendors, etc., is automatically reconciled into the AP software. This can offer significant time savings.
Automate as Much as Possible
If you’re using the right software, you may be able to automate some or all of your rote tasks. This can save you time on tasks that typically become time-intensive.
This is yet another good reason to switch to more advanced and specialized software. Even accounting software will have some automated features built in, which you can use to free up your time.
The information in this article is for educational and information purposes only and should not be relied upon for decision making. Always seek the expertise of a professional advisor or accountant prior to making any decisions.