Keeping track of all your business expenses on a daily, weekly, monthly, and annual basis can be confusing, especially if you are besieged with dozens of things to do. In addition to being in sync with your company’s expenditures and income, you may also have to handle document piles consisting of marketing expenses, collections, debts, bills, and receivables.
Accounting can be performed proficiently by a well-versed accountant, but anyone can still succeed with these tasks. With suitable software and a couple of valuable tips, you’ll have no issues with accounting at all.
Does Your Business Need An Accountant?
Being able to manage your finances effectively is one of the critical elements of a successful business. A new or small business may have limited funds which cause them to handle more of the task, especially accounting procedures. As your business grows, you may decide to outsource bookkeeping or accounting functions to an accountant or a bookkeeper.
Bookkeepers are responsible for organizing and recording financial transactions about your business. Accountants, in contrast, prepare statutory returns, give general advice for your business, and advise on legal entities.
Several tasks include:
- Cash flow monitoring
- Preparation of books for accounting
- Handling the business accounts payable
- Sending invoices out
- Monitors business transactions
The cost and skills of hiring bookkeepers and accountants are drastically different. With a limited budget to hire a bookkeeper or accountant, you may decide to use cloud-based accounting software like Freshbooks. With the cost of freshbooks over hiring a freelancer or expert, you’ll be confident that your accounting activities are appropriately done.
Cloud-based tools allow you to do all these activities online, from sending invoices, tracking time, pulling reports, recording expenses, and calculating taxes. Cloud accounting software handles all of these tasks efficiently. Even if you aren’t an accountant, you can manage your finances effectively via powerful software and these proven tips.
Managing your business is more than just checking your balance. You must be equally competent when making decisions about your finances. Cloud-based accounting tools get the job done for non-accountants as well.
Here’s a curated list of the best tips and techniques for non-accountants to effectively perform accounting jobs:
Confirm your bank account balance
Ensure that the closing balance is consistent with the summarized accounting details of the bank statement. Regardless of its slight discrepancy, it can still trigger additional errors, which can be tedious to resolve. Cloud-based software and tools have features that help you reconcile balances regularly.
Learn your company account code
To allocate transactions correctly, you’ll need to learn your company’s correct codes. When you used an incorrect code, this can result in multiple errors or can result in a false asset balance. In various cases, payments and receipts need dissection to different codes. To prevent re-work, it’s vital to use the correct code.
Keep everything organized
To be a practical accountant, you’ll need to be excellently organized. While errors are inevitable, you can prevent them by keeping all debt, ledgers, and receipt documents will keep your tasks minimal and with complete ease.
Learn to segments various transactions
Keeping all various transactions filed in one place can lead to an accounting error. Proper segmentation of multiple transactions under several heads can prevent complications while working on them from multiple stages.
You may use several codes to properly the transaction’s nature. An excellent example of this one is when you deal with insurance premiums. One payment or invoice may reflect various policies which need different codes. This may require you to carefully check invoice documents to use the proper codes or treatments effectively required.
Never hesitate to ask for help
In case there is a discrepancy, the first thing you’ll need to do is breathe and practice patience. Numbers require focus, and if they don’t match, it’s best to recheck to make sure you’ll identify the issue. Accounting requires your 100% attention and patience.
At some point, you’ll encounter a complex transaction that requires the input of a well-versed accountant—never hesitate to ask for help. Some examples of complicated transactions are property and business purchases from a solicitor and equipment and automotive purchases.
In case you’ll need to manage these transactions, identify which treatment works best and what practices effectively work. Furthermore, you may want to ask for support and leave the complex procedure to well-versed personnel. This will prevent complex issues and additional works for you and the accountant.
Train and learn with an accountant
While doing accounting tasks daily, there is still a lot of room for improvement, requiring you to seek extra assistance. You may appreciate attending an accountant’s training program to give you practical knowledge to leverage your accounting skills.
The tips mentioned earlier may not suffice with the knowledge and experience required to perform accounting tasks like an expert effectively. While nothing surely can, they can help every non-accountants to properly manage accounting tasks with convenience and confidence.