5 Best Ways to Improve Your Accounting and Bookkeeping System for Your Small Business

Are you drowning in accounting paperwork and unable to keep track of your money?

If so, you’re definitely not alone. Many small business owners have trouble keeping their accounting and bookkeeping organized and efficient. This is because many small businesses start out with an informal system that doesn’t scale well as the business grows. If you’re reading this, you probably already know how important it is to keep a good handle on your company’s books. After all, what good is operating a business if you can’t understand your own balance sheet? Thankfully, there are plenty of things you can do to improve your accounting system so that it works for you instead of against you.

Record Everything

Even if you hire an accountant to manage your books, you should still record every transaction in your company’s books. This is because even if you hire an accountant, you need to be able to report accurate information to your investors and gain new clients. If your accountant has to start from scratch, it can be extremely time-consuming. If you have an easy way to record every transaction, your accountant will have an easier time with your books. They will also be able to provide you with accurate information so that you can make better business decisions.

Hire an Accountant

Accountants have the training and experience to compile accurate financial statements. Plus, they can take any stress you’re experiencing out of the equation. Plus, accountants charge an hourly rate, so you don’t have to pay a large, upfront fee. If you’re just starting out, it can be extremely difficult to compile accurate financial statements. Plus, you may not be able to make sound financial decisions based on inaccurate information. If you’re unsure if you should hire an accountant, ask yourself the following questions: - Do you have enough income to hire an accountant? - Can you take the time to compile accurate financial statements? - Do you have the experience to make sound financial decisions based on your books? - Do you have the skills to understand your financials?

Have a Dedicated Cloud Syncing Platform

If you currently use an excel spreadsheet to record your transactions, it’s probably inefficient and unorganized. This is because few software programs can scale to handle the volume of data that an excel spreadsheet can. Plus, the amount of time you spend compiling reports will decrease as you add new transactions to your list. - If you’re using an excel spreadsheet, try to move to a dedicated cloud syncing platform as soon as possible. - If you’re using OUTBOOKS, make sure you use the desktop version. - If you’re using a dedicated cloud syncing platform, try to use one that is scalable. This will make it easier to scale as you add more customers.

Track Your Income and Expenses in Real-Time

It’s a good idea to keep track of your income and expenses as they are happening. By tracking your income and expenses in real-time, you will have an easier time creating your monthly financial statements. - If you’re using an excel spreadsheet to track your income and expenses, you can use automatic formulas to create your monthly financial statements. - If you’re using a dedicated cloud syncing platform, you can tie income and expenses to specific line items. This will make it easier to create your monthly financial statements. - If you’re using OUTBOOKS, you can tie income and expenses to specific line items. This will make it easier to create your monthly financial statements.

Automate Daily Tasks

It’s best to automate as many tasks as possible. This will make it easier to scale your business. You can automate repetitive tasks using spreadsheets or dedicated accounting software. - If you’re using spreadsheets to automate tasks, you can use conditional statements. This will make it easier to create tasks that are specific to your company. - If you’re using a dedicated accounting software, you can use macros to automate repetitive tasks. - If you’re using OUTBOOKS, you can use the built-in automation.

Use a Zero-Based Accounts Payable System

An accounts payable system is a method of tracking money owed to vendors. If you’re using a zero-based accounting system, you’re likely to run into issues. This is because many accounting software programs are designed with a standard accounting system in mind. - If you’re using a zero-based accounting system, consider switching to a standard system if you’re using an accounting software program. This will make it easier to track your vendors’ balances. - You can design a zero-based accounting system using a software program. This will make it easier to switch between systems.

Conclusion

Keep in mind that improving your accounting system does not happen overnight. This takes a lot of time, effort, and patience. If you’re just starting out, it’s best to start with an informal system. This will make it easier to get your company off the ground. However, as your business grows, you’ll need to implement a more organized and efficient accounting system. This will make it easier to track your company’s finances and make sound financial decisions.