Accounting and bookkeeping are important tasks that business owners need to carry out, irrespective of company size. It comprises processes that record a business’s financial activity and is usually carried out on a fixed schedule to avoid an IRS tax audit. When done accurately and efficiently, they help save time and reduce costs.
Some of the financial statements that need to be prepared as part of accounting and bookkeeping are income statements, balance sheets, cash flow statements, etc. Today, many of the routine tasks have become automated processes, making it simpler for small businesses to manage the accounting themselves.
If your accounting and bookkeeping tasks are daunting you, here are some strategies to maximize the efficiency of these tasks and save time.
- Use a small fireproof safe for top priority documents, while the rest of the documents (financial files and records) can be kept as a soft copy in the cloud.
- Use of debit and credit cards help track spends easily. Cash transactions can be avoided to prevent misuse or over use.
- Maintain separate personal and business bank accounts. Checks for individual purchases need to be sent from the respective accounts only.
- Store receipts, as future proof for validating financial transactions. They come in handy during year-end audits, as well.
- Try free accounting software, such as QuickBooks, Wave, or SlickPie to streamline the process and generate reports.
Since accounting and bookkeeping activities are elaborate, and the data involved is sensitive, it is important for bookkeepers to be doubly sure of the financial processes involved. Being a small business owner, it may be difficult (or a costly affair) to find a bookkeeper with a keen awareness of the business metrics and trends in the accounting space. Moreover, new business owners need to know how to leverage software applications for their internal use to derive maximum cost-saving benefits.
This is where the need for a separate service team arises. An end-to-end accounting service can offer the following benefits for small business owners. It helps cover important activities like:
- Preparation of daily reports to track cash position, or manage active cash.
- Bank reconciliations, to avoid glaring discrepancies at the end of the month.
- Organizing copies of invoices and other scanned receipts, which can be referred to at any later point in time.
- Processing of payrolls.
- Tallying the final accounts to align the bank accounts with the business ones.
- Taking stock of the inventories to ascertain excesses or shortages, to ensure a more sagacious listing in the forthcoming months.
- Recording the financial activities and position of the company from the monthlies and tallying on the whole.
- Tax filings at the end of the year and appropriately remit payments or request refunds.
- Appraisal of finances and prepare pragmatic budgets for the coming year.
- Ascertaining whether to hire employees or engage contractors, preparing the tax to be deducted at the source, et all.
Improving the accounting and bookkeeping systems will ultimately lead to an improvement in business performance overall. Outsourcing the processes can help SMBs to focus on their core area of work, while the daily accounting and bookkeeping hassle is taken care. In case you are interested in optimizing your accounting and bookkeeping activities, SmartFin can be the right partner. SmartFin is a leading accounting service, with over a decade of experience empowering SMBs to drive business growth while an expert handles their accounting. If you’d like to explore our service offerings, please drop us a line.