How to spend less time on bookkeeping
Overwhelmed by the never ending bookkeeping tasks on your to-do list? Thats not surprising. In fact, according to recent studies, more than 40% of entrepreneurs and small business owners say bookkeeping and taxes are the worst part of owning a business.
Bookkeeping and accounting is truly a never ending job and it can be a bit overwhelming to think that you can never really check this item off of your to-do list. When you finally sit down and realize that this exhaustingly mundane task is never complete, it can sometimes drain the passion right out of growing your business.
Luckily, it doesn't have to be this way. Everyday entrepreneurs just like you and me are working to make this process less painful by creating time and cost saving tools. These tools and resources will assist you in taking back time to focus on growing your business.
So lets review some of the ways to do jus that;
Opt for a Credit/Debit Card
It may be common knowledge that a credit or debit card is the best options for convenience but did you know that they play an insurmountable role in back office accounting? It's true, using a credit or debit card is a far more efficient means to account for business spending than cash or check. Checks take time to be processed by the bank and there is no way to guarantee when a check will actually be deposited. This can leave a gap in your cash flow reporting and potentially cause problems if accidentally overlooked or forgotten. And while cash is money leaving your hands instantly, it can be just as difficult to track. Cash in business is tricky because there is only one record of the transaction – the receipt. And if you don’t get a receipt, or misplace it, you are completely out of luck when it comes to recording, to the penny, your business spending. A card transaction, in most instances, will show up in your banking records immediately or at least within in 24 hours and will spell out the who, what, and where of each transaction so that you may record the information quickly.
Integrate Bank Statements with Accounting Software
One of the more tedious and time consuming tasks in accounting is recording receivables and payables into your accounting software. Lucky for you, most accounting software today has the ability to integrate directly with your bank and credit card accounts. Save yourself some time and potential data entry errors by importing bank or credit card account information directly. We recommend QuickBooks Online as it is an excellent cloud based accounting system that connects easily with almost any bank or credit card you may be using. The accounting system has the ability to automatically categorize transactions so that you can easily review them and correct any errors. However, you will still need to manually record any checks or payments that have not cleared the bank yet.
Automate Invoices and Bills
Do you have a client who has the same recurring transactions? Make the most of your accounting software by utilizing memorized transactions. Most accounting software allows for you to mark invoices as recurring so that you aren't having to continually input the same data over and over week after week or month after month. Select your date, like the 15th or 30th, and the system will automatically record the revenue, add the invoice details to your invoice template, and prompt you to print or email that month's invoices. Have recurring bills, like rent or another set expense, use the same process for outgoing payments.
Utilize Your Banks Bill Pay
Let's face it, sometimes utilizing a bank or credit card just isn't an option. Instead of writing checks yourself or printing them through your accounting software, take advantage of your bank’s automatic bill pay service. Input the recipient, the address, and the check amount and the bank will generate and mail the check on your behalf. You can send out one-time checks or create a recurring check payments. If your bank doesn't offer this service or your just not fond of the service they do offer, we also recommend Bill.com. Bill.com works with any bank, has a great workflow approval process, can send both paper checks and electronic transactions, and integrates directly with QuickBooks Online.
Use Zen Bookkeeping
Ok so we're obviously pugging our own solution here but relieving entrepreneurs of their bookkeeping headache is exactly why Zen Bookkeeping was created in the first place. While there are many more tips and tricks to reduce your bookkeeping headache, they most certainly won't remove it all together. When just starting out it definitely can make more sense to tackle it on your own but with growth and success, there will come a point when handing it over to a professional makes more sense so that you can focus on more valuable activities.
When that time comes, Zen Bookkeeping can help you live beyond the numbers!