4 Accounting Projects to Tackle Over Summer
Is there not much going on at the office? Summer is a great time to finish things that weren't possible in the year's first half. Use the time off to address your to-do lists and pay attention to tasks that have been overlooked to help get organized before going into the rush of the holiday season.
Lose The Paper!
Although it may seem obvious, we are often amazed at how many businesses still use paper to do things such as billing, proposals, and checks. It is more expensive, takes more time, and presents more risk.
1. Are you buried in paperwork in your office?
Make a clean sweep of your office and think about going paperless. Going paperless in your company is a great way to get your finances in order. You'll immediately notice the benefits of lower expenses, increased efficiency, and greater security. You can also access your data anytime, anywhere with cloud-based services.
2. Check Duplicates Your Bank Statements
You likely have already used online banking or downloaded your credit card statements. However, you can opt-out of paper by getting electronic bank statements, check copies, and credit card statements.
Many services offered by major banks and credit card companies can be managed online. First, create logins for select members of your company and choose from the available notification and delivery options. Integrate your bookkeeping with your bank or credit card account to get the best out of this service.
3. Invoices, Bills, and Pay Checks
It can be time-consuming to bill customers, mainly if you include detailed invoices and return addresses. In addition, remitting payment to vendors will typically cost you a paper check and maybe a stamp. We’ve eliminated the need to print invoices, checks, and mailing envelopes by using Bill.com to manage all our payables.
Bill.com's online payment options allow you to save time and make future payments automatically. In addition, these systems can be made paperless to help your business go green. This will enable you to reduce the time it takes for payment to be received, which can help you manage your cash flow.
Payroll is another area where you can go paperless to save money. Encourage employees to submit work electronically to receive direct deposit payments. We’ve eliminated the need to send paper time sheets, paychecks, and corresponding mail envelopes.
We use Gusto for employee payroll and benefit administration services. Our employees have the option to review pay slips and change deductions. With a single click, we can drastically reduce our paper costs.
4. Ditch The Spreadsheet
If you are serious about going paperless and want to impact the environment significantly, switch to a cloud-hosted account system. You can use the cloud-based tools offered by Xero or QuickBooks for businesses.
You can manage your entire bookkeeping operation remotely with web-based accounting systems. This allows you to access financial reports and dashboard KPIs from anywhere, including your smartphone or laptop. So your entire team will be on the same electronic page, and your briefcase can stay at home.
Examine all outstanding invoices
Your company's financial health is dependent on your ability to manage your credit and collection. Therefore, while it is essential to review your outstanding invoices on an ongoing basis, it is also important to take the time and do a "deep cleaning" of your receivables. Although it is a good idea for you to review your outstanding invoices monthly, doing a deep clean of your accounts receivable is also a good idea.
Rethink your Service Agreements
Although it may seem strange, this is an essential point many overlooks. It is easy to forget to review service agreements with suppliers and vendors, especially when you have automated bill-pay and credit card payments. Yet, this seems trivial, especially since most bills are being paid on time.
You may be surprised later if you don't read the fine print of these agreements.
You might find that discounts have an expiration date. This means you may still be paying the promotional rate for a service, even though the price will rise significantly over the next few months. For example, a vendor might have removed deliverables from their services but continue to charge the same fees.
Be aware of any expiration dates and charges that aren't fixed. You should take the time to review your existing service agreements. If you see terms that may change shortly, make a note and contact the service provider for a better deal.
Check on your data
Many small- and medium-sized companies use Xero or QuickBooks as their digital accounting software. Although they do an excellent job of backing up your financial data, it is not perfect. human error, a system bug, a power surge, etc.) This could cause data corruption in your accounting files.
Bottom line your accounting team should thoroughly review your Xero or QBO files and ensure they are regularly backed up.
Cleaning up and decluttering your business doesn't need to be complicated. Take some time to look at the things that will help you streamline your business.
