How to Best Streamline Your Bookkeeping
July 19, 2023
Of all the operational activities that go into running and maintaining a successful business, proper and timely bookkeeping is right up there. Aside from the obvious financial management, compliance, and reporting requirement benefits, transparent and thorough bookkeeping forms the basis for informed decision making, builds trust with stakeholders, and positions organizations for long-term success.
The Benefits of Streamlining Your Bookkeeping
There are several reasons why business owners should seek opportunities to streamline their bookkeeping.
“The leading benefit is that streamlining bookkeeping increases efficiency, heightens productivity, and saves business owners a lot of time,” SummitPath’s Director, Nourel Belhadj, shares. “By automating repetitive tasks, businesses can reduce manual data entry, minimize errors, and eliminate the need for multiple spreadsheets or paper-based records.”
Thereby freeing up valuable time that can be used to focus on core business activities.
Efficient bookkeeping processes can lead to significant financial savings, a true win during these times of increased inflation and operating costs. By reducing timely manual labor and minimizing those human errors that are bound to happen with manual data entry, businesses can lower the expenses associated with bookkeeping. Streamlining also helps organizations to avoid penalties and fines that may result from errors or non-compliance with tax regulations.
Streamlined bookkeeping ensures that financial records are accurate and up to date. This allows business owners to have a clear and precise picture of their company's financial health, which is crucial for making informed business decisions.
“An added benefit of having accurate financial insights is the ripple effects this has on employee morale,” Belhadj points out. “When important financial information is readily available and error-free, this contributes to a well functioning and low-stress environment.”
Accurate financial insights also enable better budgeting, forecasting, and strategic planning, leading to improved overall financial performance.
Best Practices for Streamlining Bookkeeping
The tedious bookkeeping practices of years past have been updated for the 21st century. And these new and improved practices are easy to implement.
Start with the Framework
A well-defined chart of accounts is a good first step in helping to streamline bookkeeping. By providing consistent organization and ensuring accurate financial reporting, this practice facilitates quick and accurate generation of financial statements and makes it easier to track specific types of transactions. A proper chart of accounts forms the backbone of efficient bookkeeping and contributes to the overall financial management of a business.
Establish Clear Processes
Develop standardized bookkeeping processes and workflows. Document step-by-step procedures for tasks - like recording transactions, reconciling accounts, and generating reports. This promotes consistency, reduces confusion, and allows for a seamless handover if there are changes in bookkeeping personnel.
Implement Regular Reconciliation
Perform regular bank and account reconciliations to ensure accuracy and identify discrepancies promptly. Reconciling financial records with bank statements helps catch errors, duplicate transactions, or missing entries. This practice maintains the integrity of financial data and improves the overall quality of bookkeeping.
There are new technological solutions designed to streamline and automate business operations that are hitting the market every month – everything from data entry to bank reconciliations to financial reporting.
“While we work with most of the popular bookkeeping software options on the market, our go-to tools are Quickbooks (QBO) and DEXT,” Belhadj states. “By leveraging QBO Receipt and/or DEXT to add and store bills and receipts, you can easily automate the workflow of information and create supplier rules which increases efficiency and reduces errors.”
Which means…no more shoeboxes full of receipts.
‘DEXT also creates segregation of duties,” Belhadj shares. “This ensures that there is heightened oversight and review to catch errors and also helps to prevent fraud or theft.”
Look for software that integrates with other business tools, offers cloud-based accessibility, and provides robust features for invoicing, expense tracking, and inventory management.
Bookkeeping that Contributed to Business Success and Sustainability
Your time as a business owner is best spent working on your business…instead of in it. Which is why your bookkeeping is best left in the hands of a team of professional experts who understand the ins and outs and take bookkeeping efficiency to a whole new level.
Whether you are a small one-person-show, a start-up that is gaining traction, or a well-established business with dozens of employees, Summit Path has a range of packages tailored to meet your bookkeeping needs. Let’s chat about how we can help you to grow your business.
Nourel Belhadj is a Director with Summit Path LLP. With almost two decades of experience in managing all aspects of accounting, Nourel harnesses her unique ability to dive deep and find creative financial solutions for her diverse clients.
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