Best Accounting Practices to Implement Today

Best Accounting Practices to Implement Today

It is every business owner’s dream to see their business growing. However, the onset can prove a challenge. Many entrepreneurs would usually launch a venture with just too much on their plate. From product development and sales, to hiring workers and offering customer support, there is a plethora of tasks and responsibilities that occupy them on a daily course – including accounting.

But, the questions are: Are they armed with the right accounting or bookkeeping tools? Do they have the competencies despite the lack of formal trainings? Are crunching figures something they enjoy?

Unless you are a certified accountant or a professional bookkeeper, the thought of handling your records can probably be unsettling. Yet, it is a critical foundation of your business and, when mismanaged, could crash all your efforts.

Avoid ruining all your hard work, take these five accounting and bookkeeping practices in mind:

Go Over Your Records for the Second Time

Spend at least an hour every week to double check your records to spot mistakes. While this can be a daunting task, it will surely pay off in the long run, as this can help you to immediately and efficiently course-correct errors before they go wayward.

Also, it is important that you check your invoices whether they were delivered for completed orders. You can build a “sales order” report where approved estimate or purchase order is listed. To verify whether all your goods were delivered on-time at the right place, review the sales report. Again, this will help you pinpoint errors and check for unintended oversights.

Perform Comparisons

Apart from reviewing your financial sheets, use your records to monitor any improvements or changes over a set period.

For instance, if you spot unnecessary expenses from the payroll the previous month, find out where the extra money went. Once you have figured out the cause of the issue, you can identify which area to focus on moving forward.

Performing comparisons on a monthly basis enables you to implement changes for the better, giving you the opportunity to see which aspect of the business to invest in while walking out on expenses that don’t add value.

Offer Different Payment Methods

It should be your mission to reduce the time spent on invoicing to actual payment. For example, if there is a system your customers can use to pay through their credit cards, then provide it to them. With this method, the time it usually takes to fill out and send a physical check is shortened.

Another excellent method that makes approving payments less hassle and simpler is through electronic transactions via a mobile device. Do not hesitate to offer this payment option to your clients, too.

Commit to Staying Current

Most budding entrepreneurs are guilty of setting their bookkeeping tasks on the side. Instead of reconciling their cash accounts with what’s in their bank at this month’s end, they procrastinate and do it on the 30th of the next month – when too many reconciliations have piled up.

Sure, it is tedious, but keep in mind that a regular and consistent bookkeeping is the key to countering issues come tax time.

Bid Goodbye to Your Old System

Because it is a must that you stay current, say goodbye to your old cranky accounting system. The cloud application has been making its presence known for some time now. A simple cloud-based accounting tool will not only help you keep your books precise and updated, it will also make your bookkeeper’s tasks lighter and easier.

Implement these five practices now and increase your chances of having a healthy and strong bottom line. Remember, whatever is recorded in your books is a reflection of your company’s financial performance. It is therefore essential that you keep your records as accurate as possible.

 

The post Best Accounting Practices to Implement Today appeared first on My Virtual Workforce.

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Best Accounting Practices to Implement Today

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