It doesn’t take a full-scale audit to find out whether or not a company’s books are in good working order. Accounting departments are often overlooked and under-organized until tax season arrives and it’s too late to sort through an entire fiscal year’s worth of transactions. Or perhaps there is a basic level of accounting happening, but only to the extent of spreadsheets and saved bank statements. Without any form of account reconciliation, managing future books becomes a nearly impossible task.
Why Accounting Books Become a Mess
There is no wonder why accounting books become a mess in such a short period of time, especially when small businesses don’t start out with the right accounting tools under their belt. Early accounting errors can be avoided through outsourced accounting solutions like the automated systems we offer at Indevia. Take a look at these common causes of messy books and see what you can do to avoid the pitfall that many small business owners fail to dodge.
Books Do Not Mean Profit
One big reason why many business owners and account executives will let their bookkeeping needs fall by the wayside is due to the simple fact that the books don’t bring in a profit. Dealing with the company’s finances is often mundane, time-consuming, and seemingly insignificant compared to the exciting day-to-day sales activities you enjoy in your industry.
But unfortunately, the books need to get done. And in the long run, having messed-up books can actually cause you to lose significant portions of your profit. Keeping your books tidy can help you recognize mistakes early and get on track with the right goals before your end up with some costly errors on your plate.
Lack of Reconciliation
As mentioned at the top of the article, it’s important not just to have a way to track expenses, but to reconcile them at the end of a fiscal period. It is critical to reconcile your bank accounts regularly. Some experts will recommend reconciling at least once every six months, while others urge you to reconcile more often (such as once a month). It’s a good idea to stay on top of all business transactions in case something goes awry. That way, you can catch it early and be on top of it before it gets flagged for fraud or taxed incorrectly.
No Software Solutions
Accounting is already daunting enough to those who don’t have a background in bookkeeping, let alone some of the advanced software programs that are being offered to franchises nowadays. With advanced technology offering ways to automate and precisely track all of your company’s financial activity, it is easier than ever to get your books back in shape, no matter how messy they’ve become.
While most companies are familiar with programs like Quickbooks and Excel, a more customized setup is often required to help companies make the most of their unique accounting situation. Research by the CCMA showed that 70% of businesses have a stronger ROI when switching to automation in their accounting processes. Even if this avenue seems new and overwhelming, you aren’t alone. Our team of experts can help you with a customized solution that will allow you to get your books back in working order in no time.
Signs Your Books Might Be Messy
Are you worried that you may be dealing with messy books? You can reach out to our experts at any time to figure out what kind of automated accounting solution would work best for your industry. If you aren’t sure whether your books are in a good or a bad place, go down this checklist of common signs that your books might be messy and see what applies to you:
- You don’t like logging into your banking system online because you know you are behind or you don’t like having to rely on technology.
- You don’t know whether or not your company is currently profitable due to not having a good grasp on reconciled transactions.
- You’ve lost track of how much money you spend through your business each month.
- You don’t have enough receipts to back up your tax claims; alternatively, you have too many receipts and you can’t figure out what transactions they should be attached to.
- You have no idea whether your company’s bank accounts are in good or bad standing.
It can’t be comfortable feeling so uncertain about where your business stands and what the health of its finances are. A better accounting system will give you better peace of mind, helping you form more positive habits around accounting to keep you from falling back into that ditch.
Find the Right Solution with Indevia Today
Tired of playing catch-up? Does it seem like you’ll never sort through the messy pile of accounting tasks that you’ve fallen behind on? Our pros have got you covered. We offer catch-up and cleanup bookkeeping services to small businesses, franchises, and other independent companies who may be facing dire straits in their accounting departments.
Get in touch with us today and we will work with you to come up with an individualized and automated accounting solution that works for you. You shouldn’t be afraid to open up your bank accounts or reconcile statements. Get your accounting needs in tip-top shape and watch the health of your entire company flourish because of it. Contact us today to get started!