Having unorganized receipts all over the office and in your desk drawer isn’t the best way to start off the new year in your business. To organize your accounting from the beginning will help you when it comes to tax time and will help you with your bookkeeping throughout the year. To begin the new year think about what your business needs by looking at these tips below.
Before you start though you definitely need to look into a computer budgeting software that will help keep your records organized. There are easy chooses like Quickbooks. When you select the software, be sure to learn the correct ways to implement it into your business and use it correctly. There are many online and classroom classes to take to ensure you are using the programs to their fullest potential. So now lets look at eight ways to start the new year off right in your accounting department to ensure accuracy and efficiency in your business.
Many companies are beginning to give paperless options to their clients and instead of mailing their invoices and statements, they can view all this information online and can opt into emails to receive updates on their account. This will save you not only money from paper, envelopes, and postage, but also time from your employees who aren’t having to stuff envelopes and do all the manual labor. This will ensure efficiency in sending invoices, because fewer will have to be mailed and to ensure more working is being able to be done in the time it took to stuff envelopes.
Software and Computers
Its a fact of life, computers will have less errors than human arithmetic. To ensure that your company has little mistakes in your books, use software that will help. Bookkeeping can be made easier by just this little step and you will have less errors.
Ask for Help
You might not know everything about accounting (hence why you have a business and are not an accountant), so find an expert to advise you in the best practices and what they believe is best for your business. This will be a learning tool for you and your employees to ensure that you are doing the best for your business.
Don’t let your accounting department become complacent in keeping records. Keep them on their toes and make sure that your records are better than just Good, they need to be GREAT! You don’t want to have the stress of an audit, and if you do get audited, then you want it to go as smoothly as possible. By keeping your records up to perfection an audit will be a breeze.
Find the best way to have your employees log their time. If your employees are salary, you might not have to worry about this, but if your employees are hourly and can receive overtime make sure they are putting their time in the correct way. Overtime can become expensive for your business and you want to make sure you are paying what is deserved and if you really need them to work overtime.
Find a period that you want to audit yourself and do a double check to ensure that you balance out. This could be monthly, weekly, or quarterly. Make sure that if you don’at have automated software that you double or triple check your accounts for any errors.
Keep Your Money Separate
There are alot of businesses that don’t keep their money separated from personal and business. This can cause issues in your accounting and hurt you in an audit. If your accounts get locked, then you won’t have personal money. This will keep your financials separate for tax purposes and for the purposes of bettering your business accounting.
And Again Don’t Settle
Look over your monthly rates for your bills and call and get better rates wherever you can. Don’t settle with what they tell you and try to get as many discounts as possible. Do this on a monthly or quarterly basis to ensure the maximum discounts on your accounts. Every dollar saved helps.