If you’ve recently decided to start a business, you’re probably finding that it’s a lot of hard work. From funding your idea to marketing it to customers to hiring new employees, things can get a bit hectic. Therefore, it’s important to save time whenever possible so you can get to it all without sacrificing quality. One area you can most likely cut down time in is bookkeeping. While bookkeeping is an essential part of keeping your business running smoothly, there’s no reason it should be taking an extended amount of time to manage.
How to Save Time in Bookkeeping
Use Automated Payroll
Sitting down at your computer and manually processing all of your employees’ paychecks can be extremely time-consuming. You’ll have to go through each employee, approve their hours, print the checks, sign and date them, and then put them in the mail. There’s an easier way to handle all of this, and that’s through automated payroll.
Automated payroll systems handle all of the printing, signing, and dating work for you. All you have to do is approve the payment, and checks will be sent out right away. Your employees will appreciate getting their checks faster, while you can enjoy spending your time elsewhere in the business.
Use Business Factoring Loans
If you’re spending too much time tracking down customer payments so your business doesn’t go under, you may want to consider a business factoring loan. Business factoring is when you sell your customer invoices to a financial company. The company then pays you 75 percent of the invoice total immediately, giving you quick access to capital. When the customer finally pays, you’ll receive the rest of your money minus factoring fees.
Create an Online Banking Account
Nowadays, it’s hard to find an institution that doesn’t offer online banking. Make sure you are taking full advantage of these services, as it can drastically cut down on your trips to the bank. Instead of driving out of your way to withdraw funds or deposit checks, all you have to do is click a few buttons to move your money around.
This especially makes it easy to pay vendors or issue refunds to customers, as all you have to do is set up automatic payments in your account. You’ll also have instant access to account balances, debits, and credits, which can be good if you want to double check your bookkeeping.
Invest in Accounting Software
Having reliable accounting software, such as QuickBooks, is essential to keeping your bookkeeping to a minimum. This type of program can help you track your bank accounts, create reporting data, record deposits and debits, and much more. You’ll never have to create a manual report again.
However, this software will only be effective if you know how to use it, so consider taking a class on the software to become more familiar with it. Yes, this will take away some of your precious time, but you’ll save infinite hours in the future by having balanced and accurate books. Additionally, make sure you dedicate regular time to bookkeeping, otherwise you might find you’re falling too far behind.
Keep Track of Business Write-offs
Whenever it’s time to do your taxes, you want to make sure that you have everything in order. That’s why you should keep track of all of your business write-offs as you spend them. Trying to create a list in April will only give you a major headache and waste valuable hours in your workday. Instead, keep all of your documentation for these write-offs in a safe place, and start a document that clearly defines the purchases you made and what they were used for in your business.
Hire a CPA
If you are terrible at numbers and find yourself making frequent mistakes on your bookkeeping, you might want to invest in hiring a CPA to manage your business’ finances. These accounting professionals know exactly how to document charges, balance accounts, and calculate estimated expenditures.
If you don’t have the capital for a full-time CPA bookkeeper, you should at least hire a CPA when it comes to tax season. Unless you studied accounting, chances are that figuring out business taxes might not be as simple as it sounds. A CPA knows exactly what and how to file, freeing up your time and keeping you safe from the IRS.
Stay on Top of Your Finances
Make sure that you aren’t putting bookkeeping on the backburner to attend to more pressing issues. While it might seem like you can put off creating that new financial report, it’s important that you don’t. Neglecting to record your business spending can make it a nightmare to try and catch back up. If you fail to catch up in time, you might not be able to get an accurate picture of how much money your business is actually making.
Instead, try to dedicate at least one day a week to balance the books and make sure all of your recent transactions are recorded in your accounting software.
Separate Your Personal and Business Finances
While this might seem obvious to some, it’s important to point out, as many entrepreneurs don’t create separate accounts until things get irrevocably intertwined. Make sure you have separate savings accounts, checking accounts, and credit cards. This way, you’ll be able to more accurately track how much you’re spending on your business without getting it muddled with how much you spent at the bar last weekend. Always carry a personal card and a business card with you at all times, as you never know when you’ll need to pick up something for the business.
At the owner and founder of a new business, bookkeeping shouldn’t be one of your primary responsibilities. However, that doesn’t mean it’s not important. By walking the line between quality record keeping and faster production techniques, you’ll save valuable time that can be spent elsewhere.