You do not have to be an accounting expert to get a good grasp of basic accounting practices that you will encounter as part of your business operations. Some bookkeeping tasks must be done daily, while others require weekly or monthly attention. Over time, a lot of these procedures feel like second nature and business owners do not put any further thought into the needs of their accounting department. Below we cover the top ignored accounting best practices.
Top Ignored Accounting Best Practices
Just because a franchise operator is aware of best accounting practices does not mean they are done the right way, or that there are never any other accounting needs. From incorrect data reporting to a lack of outsourced accounting solutions, these are the top ignored accounting best practices that you should know about when making financial decisions for your company.
Expense Reconciliation
Everyone knows how important it is to track financial transactions, both incoming and outgoing, on a daily basis. But keeping track of things the wrong way can lead to some serious errors and financial setbacks that will prevent your company from growing in the way you want. You should be getting into the practice of regularly reconciling your bank accounts so you are always on top of your financial health. Depending on your accounting system as well as the accounting experts you are working with, you can choose to reconcile your account once every month or once every quarter.
General Bookkeeping Cleanliness
It is absolutely essential to keep your books clean so that it becomes easier to track expenses – and find records of previous transactions – without having to dig through a mountain of indecipherable data. Companies that have fallen behind find it harder and harder to clean up their books as time goes on, making it impossible to sort through the mess on their own. Relying on third-party accounting services like our monthly bookkeeping programs can help companies of all sizes get back on a good financial track.
Keeping All Parties in the Know
As a business operator, you are likely struggling to balance all of your work tasks at once. Staying apprised of the ins and outs of your accounting department is probably not the first thing on your mind. However, a company is more financially stable, organized, and profitable when all of the team’s players know exactly what is happening with the books. If you aren’t sure whether or not you are hands-on enough, see if any of these signs of messy books apply to you:
- You have no idea how much money goes in and out of your account on a daily, weekly, or monthly basis.
- You have delayed upgrading to much-needed accounting systems because you don’t know how to navigate the new software.
- You don’t know the standings of your company’s bank accounts, which are necessary for determining the stability and stability of your business.
- It is not known whether or not your company is turning a decent profit.
No matter where you or your company stands, it is important that you gain a more in-depth understanding of its financial health. It can be overwhelming to tackle the mountain of accounting needs alone, so it is a good idea to reach out to trusted online accounting experts for feasible next steps.
Using Automated Accounting Software
It is difficult enough to play catch-up when your accounting team is an army of one. Whether or not you have in-house accountants or part-time bookkeepers on your staff, you likely are in need of additional help. This is the perfect time to browse your outsourcing options and discover the benefits of a third-party accounting software built to support any and all bookkeeping tasks.
At the very least, a company should be using an accounting tracking program like Excel or Quickbooks, which is a good way to lay out basic financial information in one place. Automated programs like our Indevia accounting solutions offer advanced and highly-customizable methods of bookkeeping that can keep your accounts in good shape while you have more time to spend on other business tasks. Automation can help you improve your ROI by up to 70% when compared to companies that stick with more traditional methods of accounting.
Utilize Best Practices More Easily with Indevia’s Automated Systems
While some accounting tasks are pretty straightforward, it can be easy to fall behind and let days or even weeks go by without reconciling past transactions. When this happens, it gets harder and harder to play catch-up on your own. Our automated software is built around the individual needs of your company, offering unique ways to help you sort through your company’s financial disorganization.
If you need help with overdue accounting to catch up with any delayed bookkeeping needs, don’t hesitate to reach out to one of our experts right away. We can curate a tailored accounting experience that will get you quickly caught up so you can avoid future financial devastation. Get in touch with us today to learn more!
