Whether it’s a promise to eat clean or visit the gym more than once a month, we all take on January with the intent of creating a positive change. We may start the year with all the greatest intentions, but as life gets in the way and work builds up those resolutions begin to blur. This is even more relevant in the world of business and bookkeeping. However, when it comes to growing a business the promise of keeping your bookkeeping on track, is a resolution you cannot afford to waiver from.
In line with starting the year off on the right foot, we thought we would share 3 of our favourite organisation based bookkeeping tips to simplify the running of your business. So why not give your books a spring clean, well January clean, and get organised for the year ahead.
The Reality of Bookkeeping
For many businesses who are starting out or even those who have been on the go for a while, the list of to-dos can become pretty overwhelming. Amongst the list of priorities, many find that bookkeeping can slide to the bottom of the list.
One of the biggest bookkeeping tips we could give to any business looking to grow is to keep their books in good shape. Organised records make everything more accessible and minimise time-wasting. We know your time is precious and finding time for bookkeeping can be near impossible. If you are struggling to keep on top of your records, then why don’t you seek to outsource. It can always help to free up time for growing your business. If not, there are a few simple steps you can take to help get your bookkeeping back on track.
So, let’s get organised.
Bookkeeping Tips
1. Reduce financial Paperwork
For many business owners the cliché sight of towering piles of paper and crumpled up receipts pouring from desk drawers, is all too familiar. Unfortunately, there is a lot of paperwork you have to keep a hold of in-case of tax investigations or HMRC visits. However, there is a way to organise this paperwork without scrambling around in piles of unorganised mess. It’s time to take your accounts digital and minimise your financial paperwork.
Going Digital
Nowadays there really is an App for everything, and accounting is no different. If your business is still using traditional desktop software or even excel spreadsheet, it’s time to lift your head out of the books and see the light. Digital software allows a business to perform various day to day basic bookkeeping tasks. With almost all accounting software being cloud-based, you can access all your financial paperwork from the one place no matter where you are. Invoice on the go, record your expenses and monitor your key financial figures whilst most importantly empty your bulging wallet of wrinkled receipts.
Transitioning to a digital accounting software can be daunting, and our biggest piece of advice would be to do your research. It’s important to find the platform that best suits your business needs. We recommend getting to know Xero cloud-based accounting.
2. Use an online Payroll System
Unless you want to face the wrath of a disgruntled staff room, another important bookkeeping task is the job of completing the payroll. With many businesses carrying out their payroll system in the form of small payroll teams or in the case of smaller businesses as a one-man-band. The job of keeping on top of the payroll books can turn into both a timely and risky job. This is where our second tip comes in handy – switch to an online payroll system.
There are many benefits to taking your payroll system digital, including the minimising of human error and efficiency of time. Here are some of the main streamlined benefits your business could reap by using an online payroll system.
Benefits of an online payroll system
Minimise the risk of human error
Online payroll systems require only one point of data entry. As opposed to entering every pay period, decreasing the odds of any data entry errors. With fewer instances of manual data entry, the odds of inaccurate information are decreased.
Easy access to documentation
Payroll reports and previous payslips are all stored online in one place. These can be easily and securely accessed at any time, by those who require access.
Time Efficiency
Once set up an online payroll system, can turn the time taken to complete the job of monthly wages from hours to minutes. The digital format makes it easy to calculate pay based on hours, overtime and holidays leave effortlessly. Freeing up your time to focus on growing your business.
3. Avoid Cash Go electronic
With the world becoming constantly more digital minded, the idea of currency becoming completely paperless is not a futuristic notion. In terms of keeping your business finances organised, our last tip would be to follow in this modern mindset.
Other than a small amount of petty cash, the most streamlined approach to expenses and transaction is to go electronic. Expenses paid in cash can become easily complicated and when the time comes to balance the books, cash payments are difficult to track or explain.
Electronic statements allow for the reduction of time-wasting and streamline the monitoring of your finances. For any reason an outgoing spend needs to be questioned, the transaction can be simply affirmed from the online monthly statement. Instead of hunting through your wallet of faded old receipts.
We hope this blog helps you tackle your bookkeeping this year. If you need any further advice on how to keep your accounts and bookkeeping organised, get in touch. At Defacto-FD we know your time is precious and finding time for bookkeeping can be near impossible. So, remember, if you are struggling to keep on top of your records seek some outsourced help and free up your time for growing your business.
