Streamlining your Accounting process has many benefits, including saving time, resources, and money. It also helps drive productivity and reduces stress. To help your business succeed, it is important that your processes are running as efficiently as possible. With a rigid and seamless Accounting Process in place, you can be sure your business is on the right track to be more organised and therefore profitable in the future. Here are 5 ways you can work towards streamlining your accounting process:

1. Go Paperless

Inefficiency can lead to mistakes and slow outputs. By harnessing the capabilities of an Accounting software, you are creating a centralised system, meaning you will be more easily able to locate any files/data than by a paper system. Additionally, a multi-purpose Accounting Software will allow you to integrate all financial aspects of your business. Although your business may receive invoices or credit notes from vendors, you could encourage them to send receipts electronically, or alternatively, you could scan them into your system. You should ensure the software you select has the following features available:

  • Accountant/Client collaboration tool
  • Client tracking
  • Task-based workflow options
  • Editing comments for multi-person use
  • Reminders/Dashboard/To-do list

It is important to note that when transferring your files to an online system, you should dispose of confidential data correctly. This is a safety measure you should take to ensure your information is not leaked. This means using shredders to discard any redundant paper documentation you may have.

2. Develop an Efficient Filing System

It is important to create a digital filing system that allows ease of access and has a well-organised storage structure. Storing your files online (for example; in the cloud), means staff will be able to easily edit and save any relevant documents. When using an online filing system, it is crucial to ensure regular backup processes take place and files are stored in different locations to ensure no work is ever lost.

With a digital filing system, it is important to have a useful document management system. This means implementing an indexed search tool that allows users to quickly lookup key words throughout all documents.

3. Standardise Procedures

In order to ensure consistency and efficiency, it is important to standardise accounting procedures, especially when there are multiple staff members working on tasks. This could be done by developing a standard checklist and ensuring use by employees.

Further to this, using a business credit card that consolidates receipts digitally for purchases eases the process of reporting expenses and standardises all purchases into a single document for review. There is also the potential to earn rewards or cashback after your purchases.

4. Automate Processes

Human error accounts for the majority of mistakes on financial documents. This problem can be eliminated by instating automated processes including data entry through the extraction of scanned documents and accounting. There is always the option of outsourcing a third party to engage in this process, however, be cautious of security issues in relation to this.

You should establish a time to review accounts to stay on top of any recent issues. These designated appointments will help you save time later down the track as you won’t have as many issues to correct. By practising good habits such as this, you will be able to further streamline the accounting process.

5. Hire A Professional

Hiring a professional Accountant can make a significant difference in terms of strategic planning for your business. Not only this but also monitoring financial performance and advising on how to proceed in response. Having an expert track your income and expenses will allow you to set measurable goals to achieve key performance indicators (KPI’s). Doing this means you will always be prepared for any upcoming and periodic financial obligations. Additionally, there is the option of hiring staff to manage additional financial aspects of your business. This includes data entry, record-keeping, software management, or expenses. If you have the budget, this additional help will mean you can put more time and focus on other important aspects of your business.

Overall, by digitising, automating, and standardising your approach to Accounting, not only are you simplifying the process, but also giving yourself the best opportunity to manage your financial matters in the most efficient way.

Need guidance with your accounts processing? Contact our financial experts at BUSINESSNAV for all your accounting needs here.