Your business accounting system can do more than just keep up with your money inflows and outflows. It can help increase your profits by increasing efficiencies and making the finances of your organization more available for proper decision-making.
If you’re looking for ways to maximize your finance department’s productivity while minimizing errors and delays, take a look at these tips that can improve your accounting system.
1. Take Advantage of Technology
Automate repetitive tasks. Since technology can provide more data access and security, you can automate simple tasks and save your company hundreds of hours in labor. Gone are the days of paper ledgers and handwritten receipts. Today's technology offers optical character recognition (OCR), memorized transactions, and electronic payments. Your business accounting system should be creating less work not more.
2. Keep Accurate Records
Set up reminders to take frequent inventory counts to prevent loss and damage. Keep your accounts payable and accounts receivable records accurate and up-to-date so you can receive a reminder several days before the deadline. Close your books within 5-10 days of the end of the month close. Your business accounting system should help you increase the accuracy of your records.
3. Establish Financial Systems For Your Company
You should review your income statements and balance sheets on a regular (monthly or quarterly) basis. Without this, incorrect incorrect decisions may be made because of lack of necessary data.
Implement systems to ensure the accurate and timely generation of all financial reports which allow you to measure and track important financial data.
4. Invest in Training and Development
Training your staff is necessary to build their knowledge and confidence in their field of work. It can be expensive but in turn, allows them to work smarter and more efficiently. Making sure the staff is able to use the tools they have effectively will influence how beneficial your business accounting system is.
5. Get Extra Help
Whether it’s outsourcing or using third-party software to work on your financial tasks, it’s a sure way to streamline your activities easier and faster. Outside CPA's, consultants, and software implementation teams can be a huge help when implementing a business accounting system.
6. Backup Your Data
Cloud accounting provides some protection, but you should have plans in place for potential outages. You should also scan paper documents to have digital back ups in the event of an emergency in the office.
At Allison L. Reynolds, CPA PLLC, we will help you design and establish smart and efficient bookkeeping and accounting processes that work for your business by saving you time and money and providing you with the financial data you need to make strategic decisions on behalf of your company. If you need help with your business accounting system, feel free to schedule a consult with us.