Accounting is a major concern of any growing business – creating financial and legal stability that is required for your company to expand safely. Your accounting efforts are fundamental in the ongoing success of your business and should never be taken lightly if you are looking to maintain a clean, trusted reputation. Unfortunately, managing your business’s finances and tax information can become a full-time occupation quite quickly and requires quite a lot of foresight to optimize from the start.
Thankfully, you no longer have to use an abacus. There are a number of tools and platforms available to help you get a grip on your accounting process. On top of this, there are some simple tips that you can follow to keep all of your accounts in order and ascertain your continued compliance with all applicable regulations. This post will go over a few of the best things that you can do to better manage your accounts and cut down on accounting missteps.
Invoicing should be automated as much as possible. It is one of the few aspects of business management that can benefit greatly from automation and actually be handled more efficiently this way. It is important, though, to consider the manner in which you would prefer to automate invoices as different platforms have distinct approaches to this function. If you prefer automating data entry on your invoices, but not archival or sending, then you should choose a platform that caters to this specifically, for instance.
Outsource bookkeeping when necessary
Saving money on bookkeeping is only a good idea until you start losing sleep. Once your accounting tasks begin to eat away at your day, you should look into delegating them to a qualified professional. They will likely even help you enjoy some beneficial loopholes that you were unaware of.
Set your minimum bottom line
You should strive to establish your minimum acceptable net income immediately so that you have a clear goal to work towards. Your income is bound to fluctuate throughout the year as business seasons continually shift, but you should always have a good idea of what your minimum threshold is and keep things above it however you need to.
Keep accounts separate
Receivables, payables and borrowed funds should never be allowed to mix. A typical yet costly error – mixing accounts leads to confusion, at best and legitimate legal complications, at worst. Stay on top of this issue by keeping funds of different origins, purposes and ultimate destinations separate from one another. In many cases, simple visualization can help with this issue as well. Hubble offer excellent functionality in this respect; as well as a slew of other useful features.
All of your files should be accurately managed as you receive or create them. Invoices, bills, reports, etc. should all be properly archived so that they can be retrieved at a moment’s notice. When the time comes to face an audit or any other difficult situation, a well-managed file system (preferably a digital one) can help bring about a speedier resolution. This can be done automatically with utilities such as those on offer from Accountingseed.
Focus on funds, not taxes
Profit and loss statements should be scheduled on the regular to help you maintain a bird’s eye view of your businesses financial status in real time. Tax reports and regulatory concerns are always of importance, but they should never take mental precedence over the management of your actual business and, of course, your bottom line. Keep your attention where it matters most and then worry about compliance.
Make sure you get paid
It can be tempting for a budding business owner to accept promises of payment and allow for delays in reimbursement, but you should definitely be sure that you get the money you are owed in a timely fashion. Prolonging the payment period is sometimes unavoidable, but, often enough, it is not. With new customers especially, you should be sure to establish your payment expectations immediately. Setting the ground work for an amicable and profitable long-term business relationship starts with being realistic when it comes to payments and exchanges.
Keeping up with accounting for your growing business should not throw you for a loop. There are plenty of things that you can do to lighten the procedural load and simplify the entire operation of proper accounting. These actions do not require an unreasonable level of attention, resources or time to put in place. As can be seen above, the options you have at your disposal are simple, yet effective and all that you need is a little foresight to keep accounting woes at bay.
If you are interested in optimizing your accounting operations altogether and freeing the maximum amount of time for other, more pressing business preoccupations, then you should definitely consider one of the accounting solutions mentioned in this article. Both Hubble and Accountingseed are excellent platforms to try out and, if they fit your accounting strategy, they can make the entire process significantly easier on you.Follow @FeatCustomers