Don’t wait until tax time to sort out your business financials. There are a range of ways and software to assist you in making your business financial life simpler. By investing in the right technology and services, you can make rapid and beneficial improvements to the financial health of your business. Follow these 7 tips in order to simplify your business’ financial systems.
1. Use Online Accounting Software
Bookkeeping software is essential in order to fine tune your financial processes. Time is money, and it is common for small and large businesses to spend considerable amounts of both on accounting practices. Inputting data into this kind of software is fast, straightforward and only needs to be carried out once.
Most calculations can be automated so that they are updated on a frequent and continual basis. Accounting software also includes tools and information for tax and audit preparations, reducing the headache involved in your tax time preparations!
2. Embrace technology
Running a business is time consuming, and with multiple tasks on the go it can be difficult to remember to set aside time for financial administration. Fortunately, there are innovative mobile and digital applications you can utilize to schedule your time, manage employees and keep track of your business expenses.
If you are on the go, certain applications will allow you to take photographs and records of your receipts for taxation purposes. Simple calendar reminders and regular alerts are other simple, yet effective ways of embracing technology, to make your financial administration processes easier.
3. Online file sharing
Forget about piles of paperwork and opt for online file sharing systems. Online filing allows you to streamline your financial records for easy access. It is also a convenient way of easily sharing your records with your trusted financial advisor.
4. Automate Bill Pay
Automating your regular bill payments is a simple process that saves you considerable time, and money (so you don’t get charged late fees). If you run a subscription based business, offering your customers an easy and automated payment system is one of the simplest ways to improve your cash flow. Through automated payment software, you can spend less time on financial administration, and more time on growing your business.
5. Hire an accountant
Having a single source of financial advice will save you significant time, money and headaches. Your accountant can help you analyse and interpret your facts and figures correctly, to develop concise insights into the current and projected financial position of the company. This includes being able to conduct predictive analysis based on your financial records, to help you with your decision making processes.
6. Separate your business and personal accounts
By keeping separate bank accounts for business and personal, you’ll save yourself hours of work and make it easy to keep track of your deductible business expenses. Handling your business and personal finances as independently as possibly ensures you don’t make any costly mistakes during tax time, and dramatically simplifies your financial administration.
Regularly setting aside time for financial review and analysis is key to creating good habits and simplifying your financial systems. Undertaking bank reconciliation monthly and consulting with your financial advisor to assess the financial health of your business, is an important component of any business financial program.
No business owner looks forward to bookkeeping. However, with these simple changes, you will find an increase in efficiency and more time to spend doing the things you love. Investing in the right people and software will help make your financial processes simpler and support you in making better business decisions for you and your team.
Bio: Laura Costello is in her final year of a Bachelor of Law/International Relations at Latrobe University. She is passionate about the law, the power of social media, and the ability to translate her knowledge of both common and complex topics to readers across a variety of mediums, in a way that is easy to understand.