Wondering How To Minimize The Time You Spend Bookkeeping? 3 Hacks With Guaranteed Success

Bookkeeping is crucial for the growth of your business. However, it is also tedious, and most people put it aside until they have no option but to do it. That said, if your business is small, you might be the only person to handle the books. However, it is not always wise to handle bookkeeping on your own. Sometimes, expert opinion from a trained and experienced accountant helps with business expansion. Here are three other hacks to consider for success with your business bookkeeping. 

Regular Accounts Reconciliations

You can uncover bookkeeping mistakes and omissions by routinely comparing two sets of financial data to ensure they match. Accounts-receivable reconciliation involves comparing client payments to open invoices, whereas bank reconciliation involves comparing cash balances and bank statement data with the transactions recorded in your accounting system. Note that reconciling reduces the volume of transactions that must be reviewed at any given moment, making the process more manageable. Further, reconciling your finances regularly also aids in seeing and fixing any issues. So try to balance your critical accounts probably once a week.

Reconcile Accounting Records

Integrating your company's financial resources, like checking, savings, and credit cards, with your accounting software streamlines your bookkeeping processes. This is because it eliminates the need for human intervention and allows transactions to get automatically processed into the books. To take this tip one step further, you should configure your accounting software with rules that instantly update your accounting records with any new bank or credit card transactions. This way, you save time and boost productivity by reducing the need to enter each transaction manually.

Create Categories for Your Expenses

A company's ability to produce income, make investments and make payments to its debtors can all be better understood by categorizing and coding transactions to the appropriate general ledger account. Note that for auditing and tax purposes, precise categorization is also crucial. When a business deal is fresh in your mind, you will find it easy to assign the proper code. As a bonus, if you enter and sort your transactions regularly, you can save a mountain of paperwork. In a perfect world, most financial dealings would follow some pre-determined rules if you were to code them manually.

These three simple hacks will go a long way in transforming your bookkeeping. If you cannot handle any part of the process, consider getting expert help from an accountant for the best outcome. It will boost your sales and maximize business expansion.

Contact a local bookkeeping service, such as Peggy's Tax & Accounting, LLC, to learn more.