EA - Tips to Improve Business Financial Systems

5 Tips to Improve Business Financial Systems

Financial management is key if you want to set your company up for success in the future. Are you using business financial systems that are current in the industry and relevant to your business needs? If your accounting and bookkeeping system is outdated or under-performing, then it might be time for you to invest in an upgrade for your company. Not only can you streamline your financial tracking and reporting, but it gives you peace of mind to know that everything is up-to-date when looking at financial reports.

Modern Solutions to Improve Your Business Results

Too often, business owners are overburdened with many responsibilities, causing them to overlook some of the most basic steps that need to be implemented for financial tracking. One of the biggest problems is that business owners are missing the right financial system to handle the transactions that are moving through. For example, if you are using any systems that require manual entry, then it is a sign that you are missing out on the benefits of automation in the bookkeeping and accounting systems.

Don’t waste your time doing manual calculations or combing through financial reports. Several effective solutions can be used to improve your business financial systems. Today, we are sharing a few of these tips to help with the improvements that are needed to maximize your financial systems.

Tip #1: Automate Whenever Possible

One of the greatest advantages of technology is that it opens up possibilities for automation. Implementing the right accounting and bookkeeping system will allow you to automate transactions as they move through your account. These solutions help to reduce the time that you are spending on accounting tasks throughout the week. What would you do with the extra time if you were able to let go of manual calculations and eliminate stress about the tracking of transactions?

Additionally, automation helps to reduce the risk of error or mistakes. Even if your team is trained to use the system correctly, there is always a risk that a typo or mistake could throw off your financial report. One wrong number can have a domino effect that results in inaccurate reporting and false information. These human errors can be avoided by using an automated system. At the same time, you will have peace of mind knowing that the automation helps to decrease the risk of fraud.

A variety of accounting and bookkeeping software programs can be used for your business. If you are looking for the right program to meet your needs, then our team at Easier Accounting is here to answer your questions. Call us any time to learn about the automated solutions that can improve your financial system.

Tip #2: Choose Effective Software Features

As you start to learn more about the software programs available for business financial systems, you must understand your business goals to identify the right solutions for your company. These are some of the tools, features, and functions that are often included in the best accounting and bookkeeping systems:

  • Report Generation: You need to be able to run financial reports on-demand, which is why it is important to have built-in reporting systems.
  • Data Fetching: Automation is available when the business financial systems have built-in features that fetch data from your bank account. These transactions can be added into your accounting system automatically, without the need for manual data entry.
  • Invoicing: Most accounting systems offer the feature of invoice creation and management. You can view the invoices that are unpaid to know where you need to follow-up to collect payment. It is a huge benefit to automate invoicing so that you can reduce stress and mistakes related to payments and collections.
  • Payroll Processing: It doesn’t matter if you have 2 employees or 200 employees… payroll processing is an essential task that needs to be handled regularly. An automated accounting system makes it easy to track payroll information, including tax withholding, benefits, and more.
  • Expense Management: Set up checks and balances in the system that require management review when certain transactions come through. This process can be valuable to ensure that you are avoiding redundancies or unnecessary costs that are cutting into your profit margins.
  • Tax Forms: When tax season rolls around every year, you are required to provide the right tax forms for your employees and contractors. If you are using the right business financial systems, then it means that these tax forms can be generated automatically.

Tip #3: Avoid Paperwork

While business paperwork is sometimes unavoidable, there are ways that you can improve your systems to reduce the number of pages that are coming across your desk. The problem with physical paperwork is that you not only have to review the information, but it also needs to be filed and managed after you are done with those pages.

Good business financial systems are designed to minimize the dependence on printed paperwork. If you need to look at a report on paper, then you have the option to print out the pages that are needed. But most of the time, the information is stored in the cloud, helping to reduce the clutter and stacks on your desk. It feels good to get out from under the piles of paperwork that tend to stack up in an office. All paperwork can be stored and managed in a digital format: contracts, invoices, receipts, and more.

Decreasing the paperwork that is used is essential if you are looking for ways to improve productivity among employees and managers. There’s no reason to have people sorting through loose pages when everything can be categorized and accessed quickly online. Filing cabinets can be burdensome and frustrating to work with, which is why many businesses are moving away from paper filing and using cloud-based accounting systems instead. Plus, you will be glad to know that you are doing your part to protect the environment.

What are your options for paperless financial tracking? Talk to our accounting team about cloud-based financial systems that can be used for your small business. These solutions give you access to the reporting and all of the accounting numbers with the touch of a button. For example, you don’t need to print invoices or reports when you can access all of the information through a smartphone or laptop computer.

Tip #4: Make a Plan and Stick to It

You need to have a clear picture of where your business is in the current moment, and where you are heading in the future. The right business financial systems will allow you to use the insights and data to create an actionable plan that will be beneficial for moving your company forward.

As you are setting goals, you should have clarity about your intentions for expansion, business development, inventory management, and more. Focus on your financial goals, then be sure that your systems are designed to move you towards those goals.

Planning can be done on both macro and micro levels. For example, not only do you need to think about the annual goals, but you also need to have plans in place regarding quarterly and monthly budgets. Implementing this level of planning will help you make meaningful progress forward because you will have the resources that can be reinvested into marketing and business development.

Tip #5: Hire Outsourced Accounting Services

Finally, don’t overlook one of the most effective ways to improve business financial systems: hire an outsourced accounting team. These professional services can be used to leverage your financial results and improve your business finances in many ways. Hiring an outsourced accountant or bookkeeper means that you can hand off the responsibility to a team that understands the most effective way to track financial information.

It is incredible to see the productivity improvements that can come by letting the pros take care of these financial services. For example, your accounting team can handle a variety of services, such as payroll processing, tax strategy, account reconciliation, and more. As you are looking for options to improve business financial systems, talk to our team about the personalized services that can be used based on the needs of your company.

Hiring a trusted team to oversee your business finances can be one of the most effective ways to amp up your results. You must have a clear picture of the financial health of your company at all times. We can help with the implementation of the right bookkeeping and accounting system. Then, our team will offer ongoing support to ensure that you are keeping up as things change throughout the year.

Are you looking for support with your business financial systems? Our team is here to help! At Easier Accounting, we provide a variety of small business accounting solutions designed to support your goals. We invite you to contact us for information about the available services. Call our experienced team any time to find answers to your questions and proven solutions that are the right fit for your business needs: (888) 620-0770.

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