Top Time-Saving Strategies to Streamline Your Small Business Accounting

We don’t have to tell you that entrepreneurship is time and resource-intensive. Between managing employees, staying on top of a growing to-do list, and figuring out how to keep up with industry trends, your time is precious.

So when it comes to handling your small business’s accounting, why spend hours poring over spreadsheets and fixing errors? Instead, use these tactics to improve your small business time management, modernize your accounting processes, and build a more efficient business.

Embrace Cloud-Based Accounting Solutions

There’s a time and a place for analog technologies, but your small business accounting system isn’t one of them.

Cloud-based accounting is the way to go if you want to cut down on wasted time. Its flexibility, affordability, and reliability offer significant benefits over locally hosted accounting software and traditional pen-and-paper methods.

Start using cloud-based accounting solutions and you’ll be able to enjoy:

• Accessibility and real-time data: Cloud-based accounting allows users to access their financial data and software from anywhere with an internet connection. Since it enables collaboration and real-time updates, this is especially beneficial for businesses with remote or distributed teams. By contrast, traditional accounting methods often require physical presence or remote access setups that might not be as efficient or cost-effective.
• Automation and integration: Cloud accounting platforms frequently come with automation features that streamline processes like invoicing, expense management, and reconciliation. They can also integrate with other business tools and systems, reducing manual data entry and the risk of errors.
• Robust, hands-off security: When you use cloud-based accounting software, security is already taken care of by the company you purchase it from. That means you don’t have to worry about security on your end (just remember to set strong passwords).

Implement Efficient Invoicing and Payment Systems

If you’re creating each invoice from scratch or only accepting payments via check, you stand to save a whole lot of time by updating your methods.

• Use online invoicing tools: With the help of customizable templates, convenient contact lists, automated calculations, and even late payment reminders for clients, digital invoicing software is designed to make your life easier.
• Accept digital payments: Using digital payment methods can significantly boost cash flow and reduce payment processing time. Unlike cash- or check-based payments, they can often be processed in minutes, are more convenient for customers, and come with built-in cybersecurity features.
• Automated reminders: You already have a lot of things to keep track of, and reminding your clients to pay you on time shouldn’t be one of them. But with the help of automated payment reminders, your invoicing software can do it for you (and you can get paid faster).

Simplify Expense Tracking and Receipt Management

Manual expense reports are time-consuming, tedious, and highly prone to errors. The same goes for physically saving, storing, and recording the details from receipts.

The answer? Embrace digital solutions you can count on.

• Mobile expense tracking: Apps built for easy expense tracking make it possible to record expenses on the go, all while maintaining accuracy and saving time. With a mobile app, employees can typically quickly create and send expense reports from just about anywhere, and admins can approve reports in a single tap.
• Crystal-clear processes: Keep everyone on the same page and reduce confusion by implementing clear expense tracking processes across the board. Instead of letting employees choose their own expense tracking methods, for instance, make sure they all use the same app.
• Paperless receipt management: Ready to save time, say goodbye to piles of paper receipts, and make receipt management easier for everyone involved? Use a receipt scanning app like Expensify’s. All employees have to do is scan their receipt using their smartphone camera and the app will handle the rest.

Outsource Payroll and Tax Filing

Outsourcing payroll processing and tax filing to professional service providers can benefit businesses of all sizes, especially small businesses.

Here’s why:

• Improved compliance: It’s no secret that payroll and tax regulations are complex and ever-changing. Professional service providers specialize in staying up-to-date with these regulations, which can help your business avoid costly penalties and legal issues.
• Better accuracy: Mistakes in payroll processing and tax filing can lead to financial discrepancies, upset employees, and even legal consequences. Professional service providers have dedicated teams and advanced systems to minimize errors, both of which can help keep your payroll and tax forms more accurate.
• Saved time and resources: Running payroll, sifting through records, and filling out tax information is time-consuming and confusing for anyone who’s not a professional. So if you delegate those tasks to the pros, you can save your time and resources for other aspects of your business that you’re better equipped to handle.

Set Up Regular Financial Reviews

Dedicating time to going over your past financial documents might not sound like a blast, but doing so can save you countless headaches and errors down the road.

To make sure your small business accounting systems are always working for you rather than against you, take a few proactive measures:

• Schedule periodic financial reviews: Just like people need regular physical exams to ensure everything’s running as it should, your business should get regular check-ins to assess its financial health. Such check-ins will help prevent any issues from falling through the cracks and keep you better informed of your business’s current status.
• Identify areas for improvement: Don’t just perform regular financial reviews and call it a day. To reap the benefits of doing so, you’ll need to use those reviews to identify inefficiencies, zero in on what’s working, and make data-driven decisions for the future.
• Seek professional guidance: As an entrepreneur, you’re no stranger to the DIY approach. But when it comes to our business’s finances, professional guidance is worth its weight in gold. By consulting with a financial advisor or certified accountant, you can gain expert insights and find out how to improve your financial management practices.

Lean, Mean Small Business Accounting Is Possible

Your business may be small, but it can still have streamlined processes powered by state-of-the-art tech. With the right techniques, tools, and practices in your arsenal, you can transform your business’s accounting methods for the better.