Hello! my name is Harry and this is my accountancy blog. It is my mission to use this blog to educate others about the benefits of hiring an accountant. I hired an accountant last year and doing so has brought many positives to my life. I now find it much easier to run my business and to manage my tax returns at the end of each financial year. I hope that by reading the articles I have posted here, you will gain a good understanding of how an accountant can help you. Thank you for stopping by and checking out my blog.
Managing financial records is an important responsibility for any business. These records are what you will use for many different accounting practices—such as keeping track of expenses, calculating your margins and preparing your taxes.
Interestingly, many businesses struggle with managing their financial records. This is partly because the process requires attention to detail and also because business data is growing on a daily basis. Data has become the fuel that drives your operations and makes your company more efficient. But as your business collects more data, managing financial records can easily become messy.
Here is how you can keep up with your financial records and remain organised during daily accounting processes.
1. Use a standard online platform for all financial documents
Gone are the days when pen and paper would help you remain efficient and organised. Whether you're running a small coffee shop or a multi-national corporation, all your financial record management should be done online.
There are many different tools that you can use to make data entries, adjustments and calculations with regards to your financial records. These tools make your work easier, and they can be standardised across the entire organisation. Whether you're keeping track of sales or inventory costs, using accounting software will be your best friend.
2. Use deferred payments for all your expenses
If you strive for efficiency in your business, you may be tempted to pay all your bills as soon as these expenses are incurred. However, paying your bills immediately doesn't give you a good perspective of your overall expenditures.
A better approach is to set specific dates for bill payment so you can determine whether or not your expenses are within budget. Use software (and the advice of an accountant) to prepare expense accounts that you can use for budgeting purposes.
You should aim to pay your bills on specific intervals (such as once a month) so you can use these insights to save on costs.
3. Limit your account receivables
As much as you should wait to pay your bills, don't wait too long to collect what is owed to you. Make sure all your account receivables (from business customers and other parties) are settled within a fixed amount of time. Ideally, you shouldn't let outstanding bills remain unpaid for more than 30 days.
Remaining current with your account receivables will help you to keep your financial records current and well organised.
Share27 December 2019
