How To Save Time In Bookkeeping?

One reason most business owners are tempted to procrastinate when it comes to dealing with bookkeeping is because the task is time-consuming. If you have a very busy day, bookkeeping has to take a backseat. Sometimes, you sacrifice quality to save time. Bookkeeping is essential to ensuring that your business runs smoothly. It does not require extended amount of time by giving your bookkeeping system an overhaul.

1. Automate Payroll System

Manually processing your employees’ paychecks can demand a large chunk of your time. Aside from going through each employee, you will have to print the checks, approve the hours, sign and date the checks and even mail them. Automating your payroll system bypasses these processes. You will only have to focus on one task as the automated payroll system can handle all the tasks. Your job is to approve the payment and once done, the checks will be sent out immediately. Your employees will also get the checks faster.

2. Create An Online Banking Account

Taking several trips to the bank can be tiring. This is why an institution that offers online banking can give you convenience as you no longer have to drive out of your way to deposit checks or withdraw funds. All you have to do is to click a few buttons so you can process your bank transactions. As a result, it will be easier for you to issue refunds and pay vendors. There is no need to worry about falling behind payments schedule. You can also get instant access to debits, credits and account balances.

3. Purchase Reliable Software

Another technique that will keep your bookkeeping to a minimum is to invest in bookkeeping software so you can record your deposits and debits, track your bank transaction and create financial reports. You will no longer have to worry about creating a manual report because the software takes care of your bookkeeping tasks, making sure you have balanced and accurate books. All you need is to dedicate regular time so you can review your report.

4. Create A Separate Account For Your Business Finances

Although most business owners make it a habit to have a separate business account, there are still small business owners who do not know the negative implication of mixing personal with business accounts. It is easy to lose track of your spending habits if you do not have a separate account for your business finances. However, this can also affect your cash flow as it is already too late for you to realise that you failed to monitor your financial activity.

Is Automation A Threat To Small Businesses?

The common misconception of small businesses is that they are not required to adapt to technology changes in order to survive. However, no one is spared from digital evolution. In fact, changes happen at the speed of light. Before you can adapt to the changes, the fast-paced technology will unveil another innovation for you to embrace. As enterprise or large businesses continue to search for innovative ways to remain competitive and relevant in the business, small businesses keep on struggling with handling the workload.

This is because they require additional people to get the job done. When automation enters the picture, it seems that small businesses continue to avoid it. They are plagued by the fact that they have to change the way things are done. These businesses are focusing on the perils of this new technology without realising that the good still outweighs the bad.

The first thing that will come to mind when talking about automation is artificial intelligence. Small businesses fear that robots will replace humans when it comes to carrying out tasks. The truth is, automation is a breath of fresh air for these businesses. There are more reasons to love automation than despise it.

1. It eliminates repetitive task.

How many times have you found yourself doing the same thing over and over again? A task which could have been completed in just a matter of days, may still be the same task you will be doing in the next couples of weeks. These tasks include sending invoice to customers, managing inventory and managing accounting and payroll. If these tasks are automated, more serious tasks can be delegated to employees.

2. It easily manages your team.

Automation makes it possible to manage virtual teams as you no longer have to require their physical presence when collaborating with them. More often than not, small businesses have employees from other countries, involve working remotely. When you manage teams from across the globe, automation will help you keep track of your the task’s progress. They can easily check their smartphones or any mobile device for updates on assigned task or upcoming meetings.

3. It ensures employee satisfaction and retention.

A small business will never grow without its employees. Automation ensures that your employees’ level of workplace satisfaction is increased. Since automation reduces human errors, it will be easier for business owners to identify employee productivity. There are also some automated tracking tools business owners can use to promote trust and transparency in the workplace. These tools will enable employees to tally the total hours they have worked.

Save Time, Automate Bookkeeping Processes

The past years have introduced automation to small businesses. Although there are still a few companies embracing traditional processes, 2016 has been a year of bookkeeping automation. Aside from saving time, you can also reduce stress with automation. You reduce manual processes and keep human errors to a minimum. If you used to spend hundreds of grueling hours for doing tasks such as tax preparation and expense reports generation, these tasks will no longer be such a pain. Babysitting your books to ensure that the information is accurate will be history. However, you need to take note of the essential tasks that should be part of the automation bandwagon.

Payroll

Small business owners consider payroll taxes as administrative burden. This is because the staff has to spend 10 hours per month managing payroll. That is 120 hours or even more a year. When your system has the ability to calculate payroll taxes, you create paychecks instantly and avoid tax penalties. You can even set Payroll up so you can integrate it with your bookkeeping software.

Inventory

Taking inventory consumes a large chunk of your time. All of the wasted time can be corrected by automating inventory management. Automating this task can help you generate invoices, pack list, minimise inventory errors, speed up the order process and create sales reports.

Expense Reporting

Submitting reports on time is essential to every small business owner because missing out on generating expense report can result in creating tax and bookkeeping problems. Automation streamlines the process of expense reporting as employees are given the ability to use mobile devices so receipts are recorded in just a snap. Automation is a time-saver because you can generate reports automatically and even integrate them with your travel booking so you can ensure that your travel expenses comply with your company policy.

Invoicing

If you rely on making a mental note when keeping track of customers who has and has not paid you, oversights can happen. It will result in cash flow problems, which will eventually pose a threat to the company’s financial stability. Keep in mind that cash flow is the lifeblood of your business. If you keep on losing track of your invoices, your company will run the risk of bankruptcy. An automated bookkeeping system enables you to sustain sufficient cash flow. You will also have a detailed record of your invoices so you will know the customers who have already made a payment.

Why Automated Bookkeeping Is A Good Idea?

Have you ever wondered why some businesses fail? It can be due to poor financial health, which is known to be a major contributor to small business failures.

If your bookkeeper is not performing the tasks efficiently, inefficiency can impact your financial health. In the digital era, small business owners have the option to make bookkeeping task easier through automation. If you need to check an updated financial report, automation will make information available in real time.

Why should a small business owner automate?

Manual tasks are time-consuming and repetitive. They also demand greater workforce and skilled manpower. However, even trained manpower does not guarantee an error-free report. Automation helps your business put things in proper perspective. The process is capable of correcting bookkeeping mistakes, which are committed repeatedly due to constant human interaction. Automation helps you to avoid these 5 mistakes:

1. Failing to track expenses regularly

Every business transaction must be recorded for a good reason: your business is dependent on your cash flow. Whether you are tracking sales or expenses, it is important that every transaction made is recorded. If you miss tracking your expenses diligently, you may end up covering expenses using your own funds.

2. Do-it-yourself bookkeeping

For a business that is just starting up, hiring a trained and experienced bookkeeper will only incur higher costs. However, a bookkeeper who is equipped with knowledge in using automated tools can ensure that your books are updated and your expenses tracked.

3. Not reconciling accounts

Business owners cannot afford to miss this task because it is a critical step in every bookkeeping process. A small bookkeeping error can snowball into larger mistakes if your bookkeeper does not pay heed to this process. Automation reconciles business books with card and bank accounts so you will know if there are discrepancies on the report.

4. Committing fraud

A business can lose vast amounts of money due to fraud. Fraudulent activities can be deterred if human interaction is reduced. Automation has a huge impact on the profitability of your business because it reduces dependency on manpower. As a result, you are also reducing the chances of committing fraud. Automation can easily spot discrepancies or incorrect details on your financial report.

5. Losing track of cash flow

Whether you want to invest or grow your business, the decision you make will depend on your cash flow. Every business should manage cash flow because it is also utilised for paying monthly expenses. A profitable business may not be considered successful without a steady flow of cash. Automated bookkeeping provides updated records of balance and withdrawn funds so you will have an overview of your cash flow.

4 Bookkeeping Tasks That Need To Be Automated

Although there are some businesses  embracing business automation, others are still left behind due to retaining traditional business processes such as bookkeeping. The tasks involved in bookkeeping can be long, tiring and tedious because you need to make sure that the information you enter is error-free. There are four essential bookkeeping tasks that need to be automated:

Invoicing

There are other areas of your business that you need to focus on and this can lead to losing track of the people you paid and the ones you haven’t. A bookkeeping software can get you covered because it automatically generates invoices. The bookkeeping software can prevent oversight, which usually happens when you do not monitor payments. Problems with invoicing are a serious matter because it can lead to losing money and cash flow issues.

Bookkeeping software that lets you generate invoices that you can email or print is definitely the way to go. Your bookkeeping software has an automated system that can help you sustain sufficient cash flow while you are waiting for your next payment. The software also gives you the ability to work in conjunction with your bookkeeping software so you can request corresponding funds or select an outstanding invoice for a specific period of time. Payments are also deposited into your account as early as the next day.

Payroll

Payroll taxes are often considered by small business owners as the biggest burden because of the grueling hours spent for managing payroll. Bookkeepers often spend 10 hours or more on a monthly basis for taking care of payroll taxes. In a year, bookkeepers are spending a total of 120 hours per year for this task alone. When you automate your payroll system, you can cut down your bookkeeping load and create an instant paycheck and calculate your payroll taxes.

Inventory

Taking inventory may take days but the time you spend on this bookkeeping task can be reduced when you decide on automating your inventory management. You can create sales report by integrating your inventory management with your bookkeeping software. The bookkeeping software can also help you generate invoices and reduce inventory errors.

Expense Reporting

Not submitting your expense reports is a company policy violation and these variables can also cost you money. Make sure you automate expense reporting for a streamlined bookkeeping process. With automation, you will be able to have the ability to use your mobile devices to take pictures of your receipts. You can also generate reports and integrate them with travel bookkeeping so you can keep track of your travel expenses.