How to Keep on Top of Your Business Accounting?
Financial management is the backbone of every business. However, it becomes a bit overwhelming for business owners to manage their finances and accounting process as it is time-consuming and requires a lot of effort. However, managing accounting operations efficiently on time is the root of business success. Following are the top tips of industry experts to keep your business accounting on top:
- Get a handle on your billing and invoicing
According to my perspective, invoicing plays a vital role in the operation of a successful business corporation. Therefore, create the most effective system for you and your requirements. Consider taking some time to develop an invoice numbering system that will be effective for your organization. Additionally, you will be able to generate the number of invoices you require while also keeping your records more organized.
- Kenny Kline, President & Financial Lead at BarBend
2. Make a bad-debt reserve to be used in the future
I believe that it is dreadful that, as a part of running a business, you will inevitably come across a customer who is unable or unwilling to make a financial contribution. The presence of a backup (bad debt) reserve in this circumstance will prevent the problem from having a negative impact on your entire organization. Consider it a kind of financial safety net for you and your family.
- Mark Valderrama, CEO & Founder of an Aquatics E-store
3. Examine your finances as regularly as necessary
You should be able to review your company’s financials as often as necessary. If your company is new or has cash flow issues, you may need to do this regularly, such as weekly. It all depends on the demands of business costs vs. revenues; therefore, it’s something to think about based on your own needs.
- Jamie Opalchuk, Founder & CEO of HostPapa
4. Talk to a financial professional about your options
In accordance with my point of view, obtaining a professional to look over your company’s finances is essential to ensure that they are balanced and correctly prepared for taxation purposes at the end of the day. By utilizing cloud-based accounting software such as Debitoor, you can grant your accountant read-only access to your accounts, ensuring accurate information is transmitted without delay.
- Viktor Holas, the Founder of Wisebarber
5. Keeping organized
In my opinion, keeping organized is one of the most critical things you can do to keep on top of your accounting. This entails maintaining an accurate record of all entering and existing funds and receipts, and invoices. You can track this information using a software tool or a basic spreadsheet. Another important component of staying on top of your accounting is establishing a system that works for you. This may include the use of accounting software, hiring a professional accountant, or outsourcing accounting functions to a firm. Additionally, if you cannot manage your accounting, you can employ a professional accountant to assist you. This is frequently the best option for firms that lack the time or resources to manage their accounting in-house.
- Jeremy Luebke, Founder & Real Estate Expert at WeLoveLand
6. Outsource it to the experts
The best tip to make sure that you’re on top of your business accounting is to outsource it to the experts, especially if you are a business owner just starting. When you’re at the beginning stages of your business, a common misconception is that accounting is one of the things you should learn to do by yourself to avoid the expense of hiring a professional. While this might be a frugal choice, this might not be ideal because, during the early stages of business, there are things that need more of your attention than business accounting. My advice is to hire an expert so that you can focus on your business without the pressure to learn accounting or the fear that you might have done something wrong with the books.
- Natalia Thompson, CEO and Recipe Creator at Flavorful Home
7. Invest in the best accounting software
Purchase accounting software that would be the most advantageous to your company. If you’re unsure about which program to buy, talk to your accountant. He or she will be likely to provide you with competent advice. You may view your accounting information from any place you have a connection to the internet if you buy online software. Your accountant will be able to browse your files more quickly. Although an online application will regularly back up your documents to a cloud-based storage location, it is still suggested that business owners keep a hard copy. You’ll get into the habit of frequently backing up your files if you’re using a desktop accounting program to ensure no data is lost.
- Dean Lee, Head of eCommerce at 88Vape
8. Keep an eye on your labour costs
Paying staff, including yourself, can account for up to 70% of a company’s overall budget. Keep track of the overtime, perks, and other advantages you provide to avoid overpaying or underpaying. Payroll taxes have different laws and deadlines than income taxes; therefore your accountant or accounting software should be able to assist you in calculating and paying these.
- Lanny Tuchmayer, Director of Operations at Bergel Law
9. Consider bringing in a financial expert
It is in your best interest, in my opinion, to consider bringing on board a member of your team who is solely responsible for financial matters. If you’re running a business, maintaining your finances can be a daunting task, especially if you’re handling a lot more than just the numbers. Therefore, I advocate hiring a financial expert as a team member to avoid becoming overwhelmed. They’ll be able to keep track of your company’s finances regularly, and they’ll also be able to give you valuable suggestions.
- Joe Troyer, CEO & Growth Advisor of ReviewGrower
The above-listed tips can make calculating and managing accounting numbers easier for you, as every business owner needs to be aware of financial information to make informed decisions. Whether you hire accounting outsourcing services or manage the accounting on your own, these tips will help you to streamline your financial process.