4 Ways To Cut Down Time In Bookkeeping

There is a lot of work involved in starting a business and bookkeeping is one of them. Bookkeeping is essential in making sure that your business runs smoothly. If it takes an extended amount of time to carry out your bookkeeping tasks, there are 4 ways you can reduce the time spent on this task.

Automate Your Payroll System

Manually processing the paychecks of your employee demands a large chunk of your time because you need to make sure that the details are correct. You will also have to print and sign the checks. The hours you spend on payroll processing can be reduced by using automated payroll systems. With automated payroll, you will be able to make time-consuming processes such as printing, signing and approving hours easier. The only tasks you need to do is to approve the payment and checks. It will be beneficial for you and your employees as they get the checks faster and you also get to manage other aspects of your business.

Sign Up For An Online Banking Account

In the digital age, almost all institutions have embraced technology. With that said, creating an online banking account will be more convenient for you to take care of your transactions. Instead of having frequent trips to the bank, you can choose online banking to deposit checks or withdraw funds. With just a few clicks, you will be able to move your money around. Transactions such as paying vendors or issuing refunds will not consume your preciious time. All you have to do is to enable automatic payments in your online banking account and you are good to go. An instant access to your debits, credits and account balances is another benefit you can get from having an online banking account.

Switch to Bookkeeping Software

Reliable bookkeeping software keeps any bookkeeping task to a minimum. Bookkeeping software allows you to record deposits, debits, creating reporting, tracking bank accounts and many others. As the bookkeeping software gives you the ability to reduce manual tasks, it will be easy for you to generate accurate reports. You just need to dedicate regular time to prevent your business from falling too far behind from your obligations.

Separate Personal and Business Finances

It is still surprising that there are still business owners who do not separate accounts. Having separate savings accounts will help you manage your business accounts by accurately tracking how much you are spending for your business. If you have the same personal and business accounts, monitoring your spending habits will be all too confusing. It is also wise to carry a business card and a personal card at all times as you never know when you are going to spend something for your business.

5 Best Practices Every Business Owner Should Follow

The lack of proper bookkeeping system often results in facing a plethora of business-related problems such as improper tax filings and poor cash flow. If you are a small business owner, these problems can put your company at serious risk. For every business to thrive, good bookkeeping habits are essential. Here are 5 good habits that can protect your business and keep you in the right direction.

1. Choose the right software

When it comes to getting the software for your business, you should not skimp on the program or system you use. If you have a good system, your business will not only reduce manual tasks, but also get more tasks done. While you may be confused with all the options available to you, it is important to consider the software that meets your needs. There are programs loaded with features, but this does not mean you can use all of the features. It is also worth considering programs that are user-friendly.

2. Keep expense receipts

How will you know the amount of money you are spending on your business if you do not keep expense receipts? You may think it is just meager amount, but when the time comes that you need to pay your bills, you will realise that you do not have enough cash flow. You will to check your receipts and monthly statements so you will know how much you are actually spending. Receipts are essential as there are not backup statements.

3. Get help to prepare tax returns

Every business owner knows it is difficult to prepare tax returns as deductions need to be accurate. You need to be well-trained to ensure your bookkeeping process is correct and will not trigger ATO audit.

4. Avoid going “hands-off”

Although you may leave most of your bookkeeping task to a professional, it does not mean you should go entire hands-off. You will need to review reports so you will know what is going on with your business. You will also have to ask the right questions to your bookkeeper. You must also understand basic accounting and bookkeeping so you will have an idea about accounts receivable, trend in expenses and more.

5. Track receivables

Chasing clients can be a tedious task because you need to make sure that all of them have paid their invoices. You will also have to track the logs of your invoices and make sure you have updated the status of each. Tracking your receivables using some bookkeeping solutions will help you find out which invoices are late and unpaid.

Bookkeeping Made Easy: The 5 Essential Tools You Need

Business owners, both large and small consider bookkeeping as a major task in keeping the business on its feet. When it comes to numbers, accuracy is important because one wrong entry can result in bookkeeping catastrophe. In terms of making bookkeeping easy, one thing that comes to mind is using some high-end tools. However, with today’s technology, there are many ways you can operate your business without dreading bookkeeping, thanks to these 5 simple but useful tools:

1. Google Drive/Dropbox

These days, many businesses are using cloud technology because it provides freedom and flexibility to workers. Business owners have the ability to access and edit files on any device with Dropbox or Google drive. They do not need to set an appointment with the bookkeeper because the information they need can be accessed using cloud technology. As compared to using desktop programs, cloud allows you to back up your data safely.

2. Smartphones/laptops/ tablets

Since the technology offers more flexibility to workers than ever before, it seems easy to get things done without necessarily being physically present. With your smartphones and other mobile devices, you can manage your bookkeeping files anytime, anywhere and of course, on any device. In the past, these devices were only meant for playing games, texting and calling friends or loved ones. At present, many people consider these devices as a clever way to keep track of everything including your bookkeeping files.

3. Bookkeeping websites

You can come across a wealth of information if you are going to visit bookkeeping websites. The ATO for instance, will provide you dates you can lodge payments and file tax returns.  The website provides tools such as a tax calculator so you will know the amount you are going to pay. Forms are also available on site.

4. Bookkeeping software

If you wish to monitor your financial activities or track your business data, Xero, Quickbooks Online and other bookkeeping programs are the way to go. The software will make it easy for you to run your business. You can also minimise the risk of fraud as you can easily spot irregularities before they become a business nightmare. Any changes made to a financial statement can be traced within the software’s transaction history.

5. Project management software

If you want to collaborate with your workers regardless of your location, project management software will help you get things done. These tools enable you to track the amount of work done and when they are done. For business owners on the go, the software can help you keep things organised.

Improve Your Bookkeeping System With These Techniques

These days, businesses have been more open to welcoming changes in workplace environment. More and more business owners have realised the potential of a mobile workforce to increase productivity by bringing innovation into your workplace. If you used to dread repetitive tasks because they are slowing you down, you need to adopt new and intelligent technology to change your business operations. There are three techniques you can employ so you can improve the overall performance of your business.

1. Improve your filing system

More often than not, business owners find themselves filing receipts and invoices to comply with the ATO. While this is the best practice to follow, the task may take long to carry out. You will need to file and manage receipts and invoices regularly to make sure that the essential documents are still intact. When filing receipts, use cloud-based programs so you will no longer have problems retrieving files when you need them. When you use bookkeeping software or cloud-based applications in filing your receipts, it will be easy for your people to access information from any device at any time.

2. Improve your information sharing capability

One reason that can delay the pace of your business operations is when  essential information is not available to your employees. When they have to go from one person to another just to get the information they need, the task can be really time-consuming. Instead of finishing the report in a day, you can end up dealing with it for days. This is why you need to improve the accessibility of your information so it will be much easier for your employees to coordinate with others in case you want to generate financial reports. When you integrate technology with your business, it will be much easier for your employees to collaborate. They can also access documents from their own mobile device. You can also increase productivity when your employees find it easy and convenient to access all the necessary information they need.

3. Streamline your bookkeeping processes

It is necessary to enhance your bookkeeping system if you are struggling with your accounts payable processing. When you lose sight of your cash flow, BAS payments to the ATO may also suffer. Real-time bookkeeping must be encouraged, which can be done with the help of bookkeeping software. The software will help you determine the suppliers you need to pay and vice versa. Week payment schedule will not be forgotten if you have a streamlined business process. You can even pay off each bill before the due date.

How To Enhance Your Bookkeeping Process

While going digital does not necessarily mean jumping at every new technology on offer, you still need to act fast or you will end up left behind of businesses that have already used advanced tools to simplify bookkeeping processes. Bookkeeping has come a long way because of the existence of software and management tools. The software can reduce repetitive tasks and let you carry out a task easily. The software lets you reconcile bank statements and even generate financial report without worrying about errors. Here are some tools that can assist you in finishing your bookkeeping task.

Cloud Computing

Cloud computing is the future of bookkeeping and it is the first thing that comes to mind when it comes to reducing bookkeeping’s turnaround time. These services provide real-time information and they can also extract key data from receipts. The details you need are published into cloud-based accounting software and can be retrieved anytime you need them. You can also provide real-time information so you can reconcile accounts. Cloud computing enables you to collaborate with accountants and bookkeepers.

Project Management Tools

Interpreting numbers and providing recommendations to key stakeholders are also the responsibilities of a bookkeeper. Technology is going to be important in this process. If your bookkeeper to prepare financial statements and reconcile accounts with ease, project management and time tracking tools are going to be necessary. These tools will enable business owners to monitor workflow and ensure that inefficiencies in the workplaces are addressed. Aside from monitoring workflow, the tools can also help business owners find out about customers who are generating the most revenue. The management can bring data together and provide details of your goods and budget. The tool will help you analyse customers by industry, geography and the products they purchased.

Bookkeeping Platform

When it comes to bookkeeping, each business need to accomplish unique goals, and using one-size-fits-all approach will never work. When choosing bookkeeping platform, it is important to choose the platform that can be customised. Platforms that enable customisation let you add new features and functionality. You can also opt for application programming interfaces that let you share pieces of software and communicate data. These abilities will help you integrate mobile payment systems, point of sale and email marketing.

These tools have features that can address your business needs and help you accomplish your business goals. Make sure you know the software that can help you reap the benefits of bookkeeping technology.

Have You Chosen The Right Bookkeeping Software For Your Business?

Part of digitising your business is choosing the right software that can help your bookkeepers get tasks done. Find the right software is comparable to finding a needle in a haystack if you do not have some criteria. Some software may have great features, but they come with a price tag. Others are less expensive, but they let quality take a backseat. The first thing you need to look for in bookkeeping software is its ability to offer the best of both worlds: affordability plus quality.

If you want to make an informed decision, you need to follow the right search process. The need for business transformation takes place as your grow your business. Can you still remember the day when you only had to deal with a few tasks? Now that your business is growing, you need to take bookkeeping to the next level, hence, consider the utilisation of bookkeeping software.

There is one thing you need to remember right off the bat: there is no such thing as the best bookkeeping software. You just need to choose the one that suits your needs.

1. Research

If you do not know much about bookkeeping software, doing a research is going to be your best bet. This means you need to start talking to your competitors to find out about the software they are using. You can also ask your bookkeeper or accountant for some suggestions. Once you have taken note of all suggestions, the next step to take is to search about the bookkeeping software. Learn more about the software’s features and functions. You may also opt for a trial version if it is on offer.

2. Decide which software suits your business

Bookkeeping software comes in two types: generic software and industry specific software. In choosing bookkeeping software, you need to know which one will be best for your business. There are features that your business may require so you need to know if you need to stick to generic software or move to industry specific.

3. Take your budget into consideration

Your budget is another criterion to consider when shopping for bookkeeping software. While your choice will depend on your budget, it does not necessarily mean you have focus on the price without checking the features of the software. Make sure you also take your needs into account. Some factors to consider when choosing bookkeeping software are your computer hardware and business requirements.

Bookkeeping software is meant to make your day-to-day tasks easier, but you should also choose the software that is able to provide increased security so you can counter data breaches and threats. Never rush into purchasing the software without doing a thorough research so you can get the most out of your bookkeeping software.

Essential Qualities Of A Modern Bookkeeper

Studies show that 78% of businesses will switch to cloud operation by 2020. At present, approximately 65% of small businesses are already using cloud applications. While cloud applications can make daily bookkeeping tasks fast and easy, the future roles of bookkeepers are still open to question.  Now that more and more businesses are considering cloud software as a welcoming relief, are businesses going to say goodbye to traditional bookkeeping?

If bookkeepers are going to view these changes from a more positive perspective, they will consider this as an opportunity to step up. Just because modern bookkeeping sets the pace does not necessarily mean that bookkeepers cannot build upon the role. Bookkeepers can remain valuable if they prepare for the changes happening in the bookkeeping industry.

What does it take to be a modern bookkeeper?

1.    Knows the ins and outs of cloud applications
In modern bookkeeping, bookkeepers are expected to be tech-savvy because they are going to use cloud applications, collaboration tools and other accounting applications most of the time. Using cloud applications differs from the traditional data entry role. A bookkeeper needs to be familiar with the functions of cloud applications because timely and accurate reports are going to be necessary.

2.    Substantial bookkeeping experience
Continuous learning is important in modern bookkeeping because dealing with basic bookkeeping task does not last forever. A bookkeeper needs to learn advanced bookkeeping techniques to keep up with the changes taking place in the industry. When a bookkeeper is exposed to various types of businesses, skills are not just limited to basic bookkeeping.

3.    Formal training
Since bookkeepers are more than just data entry clerks, formal educations are also essential in becoming a modern bookkeeper.  Aside from specialized training, a bookkeeper needs to have accounting and finance degrees to excel at modern bookkeeping. These bookkeepers will be dealing with Quickbooks, Xero and other bookkeeping applications most of the time and familiarisation with these applications are required.

4.    Following best bookkeeping practices
Bookkeepers need to learn the business’ Key Performance Indicators (KPI’s) so actionable reports are created. When bookkeepers are well-aware of the advanced techniques to employ to make the system as efficient as possible, the best service is provided to clients.

5.    Ability to understand modern bookkeeping
The best bookkeeping practices are not necessarily found in books. This is why a bookkeeper with entrepreneurial spirit will be able to understand modern bookkeeping and deal with the challenges that it may bring. A modern bookkeeper must have the ability to use social channels to engage with potential clients.

Is It Possible For Accountants And Bookkeepers To Collaborate?

When it comes to keeping businesses on their feet, accountants and bookkeepers have a significant contribution. Unfortunately, their services are deemed to be competitive instead of complimentary and this is the reason tension between these two camps build up. Why not offer the best of both worlds through collaboration?

When accountants and bookkeepers are working closely, essential information is fully reconciled. Business owners are also assured that the information is accurate. When incoming information is reconciled, it will be easy for accounting firms to focus on business-related issues such as cashflow, profit and business growth. There are several reasons for the gap between the accountant’s and bookkeeper’s work such as using the old accounting systems. When both camps see their roles as separate and there is lack of communication, there will be misunderstandings and friction.

Both parties must be aware of their roles in the business. Just because they have different roles to play does not mean they cannot work as a team. These days, accounting software can be used so bookkeepers and accountants can access the information at the same time. This makes collaboration and job tracking possible.

If there are problems that both parties may encounter, it is easy to track them once they access the same information through accounting software. The major roles of accountants include depreciation, company set up and ensuring that the best result is achieved at tax time. Bookkeepers are responsible for taking care of overflow work and bring up issues with the accountant before the year end.

Another benefit that a business owner can obtain when bookkeepers and accountants work together is efficiently generating leads through getting viable resources. When proactive approach is used, they can be a great team. With training and webinars, accountants and bookkeepers will have a clearer understanding of their roles.

How do bookkeepers and accountants position themselves?

•    Learn new skills. If there are gaps in your bookkeeper’s and accountant’s skillset, learning new skills will bridge the gap. It is not just enough that you are familiar with your responsibilities because you will also need to keep up with the technology. Accountants and bookkeepers should build on their IT skills so they can utilize accounting software effectively.

•    Consider complimentary services. Collaborative business relationships are effective in businesses because it helps the team offer referrals, share resources and give advice to make businesses grow. When there is a strong network, the business will also thrive.

•    Get to know the latest accounting technology. The first step to using accounting software is learning about the add-ons and features. Bookkeepers and accountants need to attend training sessions and utilise online training tools.

Collaboration also means embracing changes. Although technology advancements have made the roles of each party much easier, this does not mean that business owners no longer need bookkeepers and accountants. It will be convenient for business owners to work with accountants and bookkeepers if they work harmoniously. Each one has a purpose and no role is greater than the other. When businesses have a strong network, the goals that will encourage growth will be achieved.