Negosentro| 7 Tips for Saving Time and Money on Business Accounting |No matter what field you are in, if you run a business, you need to have good accounting. It is sometimes called the “language of business.” This is for good reason. Accounting helps you to keep track of your finances and better control the money in your business. However, it can also be expensive and time-consuming. These seven tips will help you save money as you are starting.
1) Track Everything Diligently
Perhaps the biggest mistake you can make for your accounting is to fall behind on your bookkeeping. If you don’t have accurate and timely records, you will always struggle with accounting. It is not a great idea to just dump receipts off at your accountant’s desk either. The more confusing the records, the more time and money it is going to cost you to get everything sorted out.
Simply put, keep things in order from the start. With the right tools, this can be manageable.
2) Have an Appropriate System
You need to have the right software and tools for the job. For example, if you run a 501(c)(3), you need to have nonprofit accounting software. Similarly, a service business needs a tool that works for services, not just products. The small differences can make a big impact.
When you have the right tool for the job, you will save time and cost. You will also save a lot of headaches when it comes to tax season.
3) Consider Hiring a Part-Time Accountant
It may sound counterintuitive that hiring an accountant can be a cost-saver. However, remember to value your own time. If you are spending hours on getting your books straight, you may be missing out on other ways you can invest in your business’s success. This opportunity cost can be substantial.
Conversely, hiring a part-time accountant or working with a CPA as an outside consultant can save you a lot of time. It may be more expensive per hour, but if you can save half the time, you will come out on top.
4) Maintain Clear Inventory Records
In a similar vein to the first tip, you should keep clear inventory records. The supplies and goods you have on your shelves are important assets. In total, your inventory may be a large portion of your business’s tangible value. Properly including it in your accounting is important. For example, you may be able to save a lot of money through depreciation, but only if you have good records.
5) Automate Processes
Automating your business processes is always a good way to improve your business’s productivity. For example, you may be able to integrate your books with your bank accounts. When your credit card purchases automatically appear in your books, you can simply add a few extra details. This can save you a lot of time. Similarly, having automatic reports can help you when you need to present your books.
6) Watch Labor Costs
Your labor costs are probably your most significant expense. This is also the cost category that is most likely to get out of hand if not monitored carefully. A little bit of overtime from your team members could lead to some less-than-ideal bottom-line figures at the end of the quarter. Monitor your labor costs and the value that you are generating with your investment.
7) Make Projections for the Future
Every year, you should be making projections about your future financial performance. Part of this will help you to budget for the following year. However, it can also help you to figure out what strategic decisions you need to make for your business. These benefits are even more significant if you reconcile your projections against what actually happened. This small effort will help you improve your accounting results.
Get Started Today
Apply some of these accounting tips today to get more benefits from the process at a lower cost. This can make a big impact when you are just starting your business.