9 Tips to Create a Modern Bookkeeping and Accounting System

Is your company keeping up with the trends in the bookkeeping and accounting industry? Or, are you stuck in the past with outdated financial systems? If you haven’t stepped into the current business trends with online accounting and financial software systems, then right now is the best time to talk to an experienced team for personalized advice.

Yes, the transition to a new bookkeeping and accounting system can be painful in the beginning. Anytime you are making major changes to your business systems; you will experience growing pains and other adjustments that need to be addressed. But, these changes are worth the effort because of the long-term benefits that are available for your company.

Benefits of Modern Bookkeeping Systems

Why does it matter if you update your financial systems? Here are a few benefits that you can expect when you implement some of the latest advances in the industry:

  • Easy financial tracking
  • Reducing busy work
  • Automated reports
  • Digital access from any location
  • User-friendly solutions
  • Security for financial records
  • Simplified payroll processing

These are just a few benefits of implementing a modern bookkeeping and accounting system. As you adjust to the new processes, you will find that there are countless benefits that can support your business goals.

Strategies to Improve Your Bookkeeping and Accounting Processes

So, what are the changes that need to be made to improve your bookkeeping and accounting system? Here are a few things that should be considered for your small business:

  1. Eliminate the Paper: The digital world allows you to keep online records for everything in your company. Eliminating the paperwork can reduce the clutter in your office. Not only will you save time on filing, but you don’t have to stress about shredding all of the documents after you are finished. Going paperless means that you have an online, cloud-based accounting program that can be used to manage all of the transactions that move through your account. You have the freedom to access the accounting information from any location, making it simple to keep up with the day-to-day bookkeeping tasks that need to be addressed.
  2. Simple Invoicing and Tracking: How often do you delay payments received from customers because you don’t keep up with invoicing and payment tracking? It is easy to be distracted by other responsibilities in your business. But, invoicing is an important thing that shouldn’t be delayed or overlooked. Implementing a new, digital bookkeeping and accounting system is the best solution so that you always send invoices and payment requests on time.
  3. Separating Financial Accounts: One of the problems that small business owners encounter is the overlap that happens with personal and business finances. Even if you run a home-based business, you need to be careful about creating a distinction between money that is spent for business purposes and money that is used for personal transactions. A digital accounting and bookkeeping system can help you reduce the complications that occur when these expenses are comingled. This step is essential if you want to help your business grow in the future.
  4. Tax Calculations and Preparations: A poor financial tracking system can make it difficult to set funds aside to cover upcoming tax payments. There is no way to avoid tax burden, and you could be facing big issues if you aren’t prepared to make the payments when the deadlines approach. An automated system helps with these tax calculations. At the same time, you can implement a transfer into a savings account to ensure that the funds are available when the tax payments are due.
  5. Easy Bank Reconciliation: Keeping up with the daily and weekly transactions is good. But, it is essential that you are consistent to schedule monthly reconciliations as well. Not only will these reconciliation efforts help you identify potential errors in the transactions and processing. But, you can also find patterns that could indicate possible fraud or theft in the industry. Mistakes will be made at times, but these issues are easy to fix when you have a good reconciliation system in place.
  6. Improve Cash Flow: Is the money always available when it is time to pay for overhead expenses or business costs that are necessary to keep the company running? Cashflow is the lifeblood of your company. If you are struggling with cash flow, then you might be headed to a path that goes nowhere in the future. The best thing that you can do is implement the right system that helps you keep track of cash flow. Then, you can sleep easy at night knowing that the money will be there when it is needed for upcoming payments.
  7. Reduce Cash Transactions: While it might be convenient to have cash in your pocket for small expenses, the use of cash can increase the risk of errors and mistakes with the financial system. It’s hard to know how much you are spending if all of the transactions are managed with cash. Instead, implement a digital system so that you have a paper trail that shows the transactions and categories for your spending.
  8. Boost Tax Write-Offs: If transactions are overlooked during the year, then there is a risk that you might miss out on potential tax write-offs that are available for your company. A digital bookkeeping and accounting system is a good way to ensure that you don’t oversee some of the important payments that can be used as tax deductions.
  9. Integrated Systems: Not only do you need a good way to track the bookkeeping information, but you need to be sure that your new system can integrate with the other tools that are used in your business. For example, make sure that the software can sync with your point of sale system, website sales, and payroll processing. These integrations might seem small, but they can have a significant impact on the simplicity of your future business processes. Put together the right program now so that you can save the stress and headaches in the future.

The Right Services to Implement a Good Accounting System

Paying for an accounting software might seem like a success for your company. But, you won’t reap all of the benefits unless you have a good accounting team to offer recommendations and advice on how the system will be best used for your needs. The right setup and implementation are essential to ensure that you are starting on a good foot.

It is helpful to have ongoing accounting and bookkeeping services to make sure that you are staying on-track going forward. Your accounting team will keep up with the transactions that are moving through the computer program. Any time you need additional information about the financial success of your company, you will find it easy to run a report and see the overview and cash balances.

There are many opportunities available to improve your bookkeeping and accounting systems. But, it is hard to know the best solutions for your company if you don’t have a lot of experience in the industry. Instead of assuming that a specific software program is right for your needs, it is important that you talk to industry professionals for personal recommendations.

Choosing the Right Software Program and Accounting Team

In most cases, you will be making a premature decision by choosing a software program before discussing your options with a professional accounting team. Instead of navigating the financial industry by yourself, consider the advantages of talking to an experienced accounting professional who can offer personalized recommendations.

Not only can you tap into the hands-on experience of someone who has been working in the business for many years. But, you can also benefit from selecting an accounting service that specializes in businesses that are similar to yours. For example, if you are an entrepreneur or small business owner, then it is best to find an accounting team that works with other small businesses. Don’t make the mistake of hiring an accounting firm that specializes in big corporate bookkeeping.

Easier Accounting is Here to Help

We understand the challenges that you face when you are working on business financial systems. If you are ready to upgrade your bookkeeping and accounting systems, then we are here to assist with anything that you need.

Our team has many years of experience helping small business owners with some of the most challenging aspects of running a company. By creating a strong financial foundation, you can rest assured to know that your business is set up to succeed in the future. We can help with these plans so that you don’t have to worry about the transaction management and other bookkeeping details that need to be addressed on a regular basis.

For more information, it is time to talk to our team of experts at Easier Accounting. Not only do we offer general bookkeeping and accounting services, but we are here to assist with customized financial services based on the needs of your company. Contact us right away to see how we can help: (888) 620-0770