As a business owner you wear many different hats on a daily basis and are able to manage several unique situations as they arise in your day-to-day business operations. But there is one aspect of your business that you may be shying away from giving your all: your business accounting. As you look through your filing system you find unpaid invoices, random receipts from purchases long forgotten and financial statements so incomprehensible they may as well be written in a foreign language. So, what can you do to improve your accounting process?
There are several ways you can improve your process and get a better handle on your accounting. It starts with keeping better records. If you have paper receipts floating around your office or file cabinet, go through them to organize which were business expenses and then file them away by date. Business owners who are comfortable with electronic record keeping can even scan the receipts into a software program to optimize the organization process. After that is completed, make sure to file receipts as you get them in order to keep better track of your expenses, perhaps even using a dedicated business credit card to streamline record keeping.
The next best way to improve your accounting process is to manage your invoicing and receivables better. For many business owners, this may be easier said than done. But it is absolutely vital for your business to have a record of when invoices are sent out and when, and by what means, your clients have paid. That ensures that you will not miss any potential revenue.
Another way to improve your accounting process is to hire a professional, if at all possible. Many business owners balk at the cost of having a bookkeeper or accountant. But even if you decide to hire one for merely a few hours per month it can make a substantial difference in your business accounting. A professional accountant will be able to organize and file your expenses, record deposits, create details balance sheets and make sure you have a better idea of the state of your finances. Professional accountants also are well versed in tax law and can find deductions that many business owners would otherwise miss.
So instead of panicking at the sight of your stacks of business receipts and financial documents, follow the above advice to improve your business accounting. Because when your accounting is optimized, your business can flourish to it’s full potential.