Whether you’re a freelancer or the CEO of a large corporation, accounting can be an extremely frustrating and time-consuming part of running your business. The right tricks, however, can save you time and prevent you from losing money on basic mistakes. To help you get start, here are five easy hacks that every business owner needs to know about improving their accounting department.
Create a Department Policy
When starting out with a business, the first thing that usually needs to be dealt with is the accounting department. This is where your financial information is tracked and recorded. Therefore, it’s important for this department to run as smoothly as possible so that everything gets taken care of as it should. These five hacks will help improve your accounting department and make it run much more efficiently . The first hack you need to know is what type of accounting software you want to use.
Most companies use QuickBooks, but some people may want something different like Zero or NetSuite depending on their preference. Next, create an office policy on how employees should handle money transactions such as paying themselves or processing customer refunds. The third hack is making sure you have all the proper documentation such as itemized invoices from vendors and contracts from clients before entering any transactions into QuickBooks because otherwise errors can happen.
Make sure you have the right software
Too many business owners take the accounting and finance tasks for granted. Keeping up with taxes and balancing the books are essential to long-term success, but it can also be time-consuming. As a startup, it can be difficult to hire staff for these positions since there isn’t enough capital and need for headcount. However, there are certain hacks that every business owner should know in order to improve their accounting department’s performance. Here are five hacks that you may not have considered before.
It may seem intimidating at first, but embracing technology will not only make your life easier, it will also boost your bottom line. Make sure you look into the following five hacks:
o Utilize third-party apps for timekeeping – this will save you from having to manually write everything down. There are many programs that offer an online interface and are completely customizable for you business. The best part is that they’re affordable and save you money on what would have been wasted paper forms. o Automate payments to employees – don’t waste any more of your precious time by constantly reminding people about their paycheck deadlines. By using a system like PayPal, it’s easy to automate payroll checks so employees receive them right when they’re due without any hassle.
o Track inventory with scanning software – instead of relying on pen and paper or Excel spreadsheets, use automated software that scans barcodes and automatically updates inventory levels in real-time.
Invest in Employees
One of the most underrated resources a business has is its accounting department. It’s often difficult for companies to find the balance between saving money and doing what it takes to create long-term financial stability for their company. This can lead to neglecting employees in the accounting department, who may leave the company soon after. To combat this problem, you should provide employee perks such as health insurance and paid time off.
These are all costs that will be more expensive if your employee leaves. You’ll need to invest more money into the right benefits package so they’re less likely to jump ship when they want new challenges or want to take care of their family with benefits like maternity leave or vacation time.
Break the work up into smaller tasks. If you don’t feel like working, or are feeling unmotivated, this is a great way to stay productive and keep moving forward. You can complete a chunk of work then take a break before getting back at it again. It will help maintain your focus as well as reduce stress and increase productivity.
Don’t try to tackle all your accounting tasks in one sitting. The more time you spend on each task, the better quality it will be. When taking breaks, plan to do something relaxing that has nothing to do with work-related activities. Get up from your desk for five minutes and get some fresh air; drink water instead of soda; stretch; go for a walk outside; etc.