Accounting can be a major hassle for small businesses. Staying on top of bookkeeping can be hard, especially when you have money coming in and out from different sources. A lot of small business owners manage their own accounts, while some hire someone to do it for them. But even those who have an employee to do their accounting can find that things aren’t as efficient as they would like. It’s always possible to try and make your accounts more simple and easier to keep track of. If your accounts are overwhelming or slowing you down, try using these methods.
1. Create a Routine
You might dread doing your accounts, but it has to be done. It’s something that you should check up on regularly to ensure that everything is in order. Of course, you could throw all your receipts and invoices in a drawer and deal with them at the end of the tax year. But that would be creating a lot of unnecessary work for yourself. The better thing to do is a little bit of work each week so that you can keep everything straight. When it comes to doing your taxes, you’ll be happy that you had the foresight to establish a routine. Set aside some time each week, or even a few minutes every day.
2. Integrate Your Software
Using specially designed accounting software can help to make things much easier. But when you use lots of different platforms for various money purposes, it can get confusing. For example, you might use an online payment system. Then you have to enter all your transactions manually into your accounting software. Finding a platform that allows you to integrate these these things will help. For example, you can use Stripe Xero integration to have your Stripe payments automatically listed in your Xero accounts.
3. Automate as Much as Possible
Having to do anything manually will take up more of your time than is necessary. If you can set it up to happen automatically, you should. For example, you may have to pay the same bills every month. Instead of performing this same action each time, set it up to happen without your input. You can use a direct debit so that companies can take the amount you owe out of your account. You don’t have to worry about remembering to do anything, and it will save you valuable time every month.
4. Get Online
People are doing things on paper less and less these days. In fact, they’re not even doing things directly on their own servers as much. Instead, cloud computing is the new thing. Why have software installed on your computer when you can use a cloud service to do your accounts? You can keep all your essential accounting information backed up online too. It’s much better than having filing cabinets full of paper.
Accounting might be a hassle, but it’s something you have to do. Luckily, you can make it easier with a few tweaks to your usual practices.