If you’re trying to grow a business – whether it’s small, medium-sized or large – you may find that you’re bogged down with bookkeeping tasks that are keeping you from performing your core tasks. If you’re spending more time on administration than providing the service or product customers pay you for, it may be time to look at streamlining some of your bookkeeping processes. There are a variety of ways you can do it, and we will cover some of those ideas in this blog.
Outsource your payroll
While newer accounting software solutions have cut the average time it takes to process payroll from about five days to one or two days, those are still days you’re not focused on your core business. Many back-office outsourcing companies will take payroll work, and it can free up valuable time. While of course you’ll pay for the service, you will probably find that it’s a cost-effective step by eliminating the time it takes to do it in-house. It can also help you with minimizing errors and boosting any regulatory compliance you may be facing.
Automate your payables and receivables
Chances are that you’re already using some kind of accounting software as the basis for your business accounting. While platforms like QuickBooks don’t have accounts payable and receivable built into the core solution, you can buy modules that will extend your software automation to these functionalities. AP and AR automation, coupled with global partner payments capabilities, can speed up the time it takes to pay and send bills and to get paid, and it will ensure that your AP and AR records are properly integrated with your core bookkeeping functionality.
Sharpen your cash flow management skills
Many businesses run into problems with cash flow simply because they engage in too much guesswork. It’s important to have a high-level view of cash on hand, overdue accounts receivable and accounts payable balances and vendor invoice due dates. This way, you’ve got the tools you need to regulate your organization’s cash flow and ensure you’re making timely payments. This will also give you a good idea of when any financing is required, and how much.
Organize your accounting hierarchy properly
Many companies, particularly small ones, have too little oversight and spread of duties in their accounting departments, which leaves them vulnerable to fraud. Ensure that you have put the industry standard segregation of duties in place by following best practices laid out by the COSO Framework, a system of internal control that includes five integrated components: control environment, risk assessment, control activities, information and communication and monitoring activities.
Hire an outside accounting services provider
Consider hiring an outside organization that can take a lot of duties off the plate of workers who need to be focused on your company’s core competencies. You’ll be in a good position to take advantage of this organization’s skills and expertise, which can actually save your company money in the long run by eliminating late payment fines, speeding up the accounts receivable process, taking advantage of financial opportunities you may be unaware of, and ensuring you’re making the most of your tax situation.
DOAAR is a small business bookkeeping, tax and consulting services firm, with an additional focus on its clients’ personal finances. Specializing in bookkeeping, controller and CFO services, DOAAR’s offering spans daily accounting, month-end closing, complex financial modeling and oversight. From execution to analysis and strategy, DOAAR provides clients with a powerful and fully integrated back-office accounting solution. We have locations throughout California and the rest of the U.S. For more information, visit our website or call 888-405-0880.