Aug 04 , 2021

5 Time Saving Accounting Tips

5 Time Saving Accounting Tips

Aug 17, 2020 1:57:57 PM / by Krystal Holmes

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Don’t ever let your business get ahead of the financial side of your business. Accounting, accounting, accounting. Know your numbers.
Tilman J. Fertitta

     Small business is unique; most people wear multiple hats, and business owners generally wear the most. One of the most common areas business owners take on is their accounting. And let’s face it, most people don’t like to spend large amounts of time on their accounting. It’s frustrating, time consuming, and even boring.
Below are some time saving accounting tips for the busy small business owners to help free up some time and improve financial reporting.

1. Clean up the books

Cleaning up the books allows business owners to spend less time on their accounting and brings more accurate financial reporting.
     – Tie the books to the last tax return.
     – Current year information should be put in contemporaneously.
     – Negative assets in liabilities should be corrected.
     – Credit balances on parables and receivables should be applied or deleted out if not valuable.
     – Old checks that were never cashed should be cleared up or removed if not valuable.
     – Old checks that were never cashed should be cleared up or removed if not valuable.
     – Identify any inaccurate deposits and create journal entry to remove. – – Identify any prepaid or accruals that should be booked.
     – Review fixed asset entries for adherence to capitalization policy and ensure current year depreciation expense is being scheduled monthly.

2. Automate Invoicing

To promote healthy cash flow, business owners should be invoicing as soon as possible to get the invoices out and paid sooner.
     – With any recurring invoicing utilize memorized transactions.
     – Sign clients up for an auto-payment program.
     – Utilize payment software, such as Bill & Pay to automate payments and allow clients to login and pay their invoices online.

3. Automate Expense Reporting

By automating expense reporting, business owners will save time and money by not needing to chase down receipts, employees, and providing accurate financials and job costing.
     – Utilize expense software such as Concur or Expensify.
     – Encourage timely reporting by having deadlines for team members.
     – Process, Process, Process! This creates happy owners and happy employees.

4. Reduce time spent entering transaction data

Reducing time spent on entering transaction data is possible in some capacity for most small businesses.
     – Download an import file whenever possible.
*Banks, credit cards, payroll providers, invoicing applications, inventory tracking systems are the most likely to have import files you can use to dump transactions into your books.
     – Software, such as Transaction Pro Importer, can also save time by entering transactions into your books where an import file may not be available.

5. Evaluate past due invoices and credit policies

Evaluating A/R and credit policies is one of the areas that can be most beneficial to small business owners, especially those struggling with cash.
     – Determine if all your receivables are collectible.
     – Invoice as quickly as possible to get invoices in front of customers.
     – Follow up with past due balances in regular intervals (weekly).
     – Evaluate credit policies; are updated needed, is there a credit policy in place?

At All In One Accounting, we take businesses from financial chaos to business clarity and beyond.  Our elite team of Accountants, Controllers, and CFOs are ready to help you in these uncertain times.  Click the button below for a free consultation with one of our accounting professionals.

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Tags: tips and tricks

Krystal Holmes

Written by Krystal Holmes

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