Master your accounting process and you’ll spend less time on administration while reaping more rewards.
If your company’s accounting process is slow, complicated or laborious, it’s time for a change. Streamlining your system may take time and effort initially, but once you set it up, you’ll wonder how you ever managed the old way.
If you’re ready to revamp your bookkeeping, keep reading. We asked several business experts for their opinions and advice on setting up an effective system.
1. Embrace change
Overhauling your accounting system can seem like a lot of effort, especially when you have one that works quite well. But complacency with old systems can lead companies to miss opportunities that would have opened up had they chosen innovation instead.
“When it comes to managing your business finances and cash flow, complacency is the enemy,” said Ben Pfisterer, CEO of EFTPOS provider Zeller.
“While it might seem easier to stick to what you’re used to, investing a little time and effort into digitizing and streamlining your accounting now means you’ll reap the benefits for customers. years to come.”
2. Invest in accounting software
Accounting software can take a minute to get used to, but once you’ve mastered the basics, there’s no going back. It can save you time, help you identify opportunities, and even help you maintain better business relationships.
“Most accounting packages give you the ability to add due dates and make sure you don’t pay anything late and incur unnecessary bills and bad supplier relationships,” said said Chantelle Smith, management accountant at Connectt Total Business Solutions.
In many cases, you can even link your corporate bank account or credit card account directly to your accounting software to create automated, in-depth reports.
For example, American Express Business Cards can be integrated with MYOB, Quicken and Microsoft Excel, so you can consolidate financial statements and simplify your business reporting.
“With proactive and fast invoice entry, you can, with a single click, see all your invoices due on a certain date, see what’s happening in the coming weeks or months and plan your flow cash flow accordingly,” Smith said, “Cash flow is so crucial for small and medium-sized businesses.”
These rigs don’t have to be expensive either. Most programs are affordable and offer packages at different prices for small and large businesses.
3. Consider a business card
If you don’t already have a dedicated business credit or charge card, it may be worth considering. A business card can help you separate expenses from personal expenses, which can simplify your bookkeeping efforts.
“Instead of using a personal credit card to pay for business purchases, a business credit or charge card is the best way to make sure you’re capturing all of your business expenses,” said CFO and financial educator Amanda Fisher.
“There are many costs in business that can be paid by credit or charge card. If you have funds in your business bank account, a charge card is an easy option, with funds coming directly from the business bank account to that time. of payment.”
In addition to streamlining systems, credit and charge cards can also help owners offset business expenses. For example, business owners with an American Express Qantas Business Rewards card can earn up to 1.25 Qantas points per dollar spent on daily business expenses.
Qantas Points can then be used to help offset business expenses, including flights, hotels and gift cards. Use them to cover business expenses, reward employees, or treat customers. (You can even treat yourself if you want.)
4. Maintain your accounts
Smith also says that many companies can miss opportunities because they don’t keep their books.
“The biggest mistake business owners make is begrudgingly viewing bookkeeping as something you do in retrospect just for tax compliance,” she told Finder. “From receipts stored in shoeboxes to folders filled with months of unrecorded transactions – we’ve seen it all.”
Without timely recording, Smith says business owners can’t base their day-to-day decisions on real data. Can I afford to buy this asset? Will I have enough to pay additional salaries?
“It’s easier to answer these questions when you have a clear idea of your current cash position,” she said.
5. Store expenses electronically
If you’re one of the business owners guilty of keeping a drawer full of receipts, take that as your sign to stop. Storing them electronically is not only easier, it reduces the risk of you missing out on a claim at tax time.
“You can save yourself a whole world of heartache if you just take pictures as soon as you get them and electronically categorize them,” says Gerry Incollingo, managing partner at LCI Partners.
“There are many apps that can help business owners and sole traders store receipts, including Hnry and Crunchr, or you can use free tools like the ATO’s myDeductions.”
🔥 Tip! Some business credit cards will give you access to employee cards, which can help you easily track company expenses. For example, American Express Qantas Business Rewards card members can get up to 99 employee cards at no additional cost.
Learn more about the American Express Qantas Business Rewards Card
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