As your business grows, you might hear people suggesting you to look into automated bookkeeping. People claim that the service will make it more efficient to run your business, and even a possibility to increase your revenue. The claim is indeed true. We will highly recommend it for any business in an industry, regardless of the size of the company itself. However, it may take a little bit of attention in the process to get such a satisfying outcome.
Why Is Automated Bookkeeping So Important?
The importance of bookkeeping is inarguable because the resilience of your small business depends a lot on it. However, many business people just can’t help it. With so many tasks already on their tables, noting down transactions seem like too much of a hassle. There is just no time for it.
If your business has reached this point, then you need automated bookkeeping. This service is your best option to keep track of every money in and out. To get even more beneficial results, choose a bookkeeping system with a cloud or internet base instead of the offline one. Hence, you will get to access your ledger anytime and anywhere without any difficulties.
Having bookkeeping automation is still even better than hiring a full-time employee to handle bookkeeping. You can save money from the payroll because bookkeeping automation is much cheaper. Moreover, there is barely room for honest mistakes, which are very likely with human works.
By having your ledger updated and accurate all the time, it will be much easier for you to review how healthy and efficient your business system is. You will be able to spot which expenses you can decrease, as well as which profits you can boost. At the end of the month, the whole data will help you develop a more efficient business strategy.
How to Automate Bookkeeping
There are many things you can automate on your bookkeeping. The more you adjust at the beginning, the more helpful your system will be. Indeed, setting automatic bookkeeping will require effort and time. But once you get everything settled, the whole automation program will be much satisfying. You can then get more focused on your business management without having to worry about every transaction and help you with your taxes as well.
Here are the things you need to set up on your automatic bookkeeping:
1. Extracting Information from Receipts
Manually reading each receipt and then typing them all into a spreadsheet will be much time-consuming. Fortunately, digital tools can help you scan all hard-copy receipts and extract essential information from them. All the data will get summarized in one book via cloud computing technology. The financial reports will be much more accurate than if you input the data manually. Even better, you don’t need to spend much money and time on it.
2. Linking Your Accounts
Connecting your bookkeeping system with your bank accounts will help the automation system because most of the transactions happen through banks. The linking will eliminate your need to download the reports from each account to copy them into your financial ledger. We highly suggest creating integration on all of your banking accounts, either the debit and the credit ones. With full integration, your bookkeeping reports will stay updated in real-time so that you can keep track of your company’s money anytime. This will help you stay on track with the tax season and stick to all tax deadlines every year.
3. Automating Payrolls
Although you already have a clear agreement with your employees about their payroll, this process can take quite an effort. Besides summarizing work hours, dealing with bonuses and deductions, and calculating taxes, you also need to issue the transfer on time. With automatic payrolls, none of these steps require your energy. All of your employees will receive what they deserve right at the scheduled time. There are many outsourced payroll services to help you with this instant service. Your employees can even access their payroll details online to review their income.
4. Administering Invoices
Receiving payments from other parties can be too much of a hassle, especially if you have to keep reminding them over and over again. Fortunately, automatic bookkeeping also allows you to automate this task. From issuing invoices, sending out the bills to reminding the payment if the due date is coming near, you can just leave it on the system. Not only will it be more practical for you, but you can also give yourself peace. We all know how stressful this process can be.
5. Categorizing Transactions
In bookkeeping, there must be categories for every type of expense and income. Categorization will help you review the whole company’s cash flow and see if your business has a healthy financial status. In automatic bookkeeping, you can even adjust the system to memorize recurring transactions. Your automated bookkeeping will sort everything in order in real-time and provide you with a reliable report anytime.
6. Setting Details
Effective bookkeeping doesn’t necessarily have to be the most detailed one. If your business is still small and has not many transactions going on per month, too many details will make it difficult to understand instead. For example, if you purchase an inventory for $100 and pay an extra fee of 1%, you can note that the price is $101 instead of making two inputs of price and additional fee. The more your business grows, the more details you can add if you feel the need for it.
To make the whole process even much more manageable, you can contact NumberSquad. We are more than just a tool for bookkeeping, but we also have professionals ready to assist each client. Our team will help you customize a bookkeeping system that works best for your business because we believe that every business is unique.
Just sit back and relax, and you will receive regular reports of your financial balance through automated bookkeeping. Even better, we can also help you with taxes and other accounting management services. Kindly contact us, and our representative will get back in touch with you shortly. There is no way you will regret this small yet significant investment.