Whether it’s a small business or a large corporation, from entering invoices, reconciling banks to chasing debts, one thing bookkeepers can agree on is the tedium involved.
But accurate bookkeeping is a crucial part of running a successful business. If the records are not accurate, your reporting will not be accurate, and you will struggle to effectively track the performance of your business.
Successful bookkeeping is basically a health check for your business and can highlight anything financially untoward. But there are ways to improve the efficiency of your bookkeeping and alleviate the tedium!
Automate whatever you canThere are many software systems out there that will scan documents and extract key data. These also integrate with accounting software to post the document immediately. A couple of examples are Hubdoc, which integrates with Xero, and PaperLess, which integrates with Sage.
It’s also useful to set up banks on bank feed, so transactions pull through from the bank automatically. This will save importing, duplicating, or omitting transactions.
If your system allows it, you can set up bank rules to automatically reconcile payments or transactions that happen regularly.
RegularityIt is much more efficient to approach bookkeeping on a “little and often” basis. Reconciling the bank or entering the invoices daily or at the very least weekly.
Setting and keeping to this routine means you will avoid being faced with a mountain of bookkeeping to do before month-end reports can be produced. It is also much quicker to do the bookkeeping when the events or transactions are fresh in your mind.
Regularity will enable you to pick up any errors and resolve them much more quickly and effectively.
Keep a close eye on accounts receivableWhen your customers don’t pay on time your cashflow can dry up surprisingly quickly, so pay attention when your debtors fall due and particularly to any that are overdue. The sooner you can follow them up the better – if a customer is in financial difficulties, you may still be able to recover at least some of what is owed.
Go paperlessMost paperwork these days is sent electronically, so it’s worth having a strong, highly organised, and effective digital storage solution.
Another way to ensure that transactions always have the relevant paperwork easily accessible is to attach a copy to the transaction in the accounting system. The invoice scanning systems mentioned above will enable this.
Every business has unique and specific needs, so before making any changes, it’s best to speak to your advisers. If you are concerned that your finance team is not as efficient as it could be, or thinking about ways to save time and costs, we would be happy to discuss your situation and ways that we can help you grow while improving efficiency.
For more information please contact us using the form or call 02476673160
Please note: This article is provided for information only and was correct as at time of writing (17/02/23). Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance. No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.
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