Accounting Practices that will Add More Time Back to your Business
We hear it quite often from business owners that they wished they had more hours in the day, or that time is the one thing they wish they could buy. The following accounting practices will not only help you add more time back to your business but they will also result in cost reduction strategies, after all Time is Money.
Separate Business and Personal Expenses
A common mistake new business owners make is using their personal bank account to fund business needs. It is not uncommon to use personal funds for your business, especially for start-ups, but using your personal account can expose you to legal risks. Having a separate business account for your business needs will make it easier and faster for you and/or your accountant to recognize business transactions. In addition, a business account will be immensely helpful during tax season to ensure all expenses are accounted for and all revenue is properly reported.
Automate Accounting Procedures
We suggest this often because it is necessary for your business to implement an accounting software in order to remain competitive; to read more on accounting software click here. Acquiring and implementing a business invoice software is an added expense, however this type of software can return a robust ROI. A good software will help you track income and expenditures, categorize them, and generate reports. In addition, today’s software allows accessibility for your accountant and for you from virtually anywhere in the world and at any time. Implementing an accounting software will improve efficiencies, improve productivity, and it will provide you with more time to dedicate to what matters most.
Commit to Updating your Books
In order to have a clear and accurate picture of your company’s financial state you must keep the books current. Do not allow receipts and vendor invoices to pile up. Keeping your books up-to-date and in order will save you time when preparing monthly and/or quarterly financial statements; this will also save you significant time during tax season.
Hire an Accountant for your Business
As a business owner, your time is valuable, we want you to focus on running your business, on meeting customers, on closing deals, and/or improving your business. The time spent on managing your accounting is underestimated, it is time consuming. An accountant is also up-to-date with new regulations and invests time understanding new and/or updated IRS guidelines. Finding an accountant who can keep your accounting system on track can free up your time and help you make better decisions. Hiring an accountant for your small business will also help you with work-life balance.
While working with our clients we like to educate them and help them become more efficient business owners. We also understand that accounting can take you away from your day-to-day activities in your business and we would love to help you have more time for the things that matter to you. We are available to answer your questions, feel free to call us or send us a message.