Operating a small business can be quite overwhelming as there are multiple tasks to be managed with limited human resource. In the increasingly competitive business landscape, dealing with external factors isn’t the only challenge faced by SMEs on their path to success. Seamless management of internal operations is also crucial for achieving maximum efficiency in operations.
In addition to sales, human resource and marketing, small businesses also need to precisely manage their accounting function as it’s directly related with the thing most important to the company: money.
Efficient bookkeeping has always been one of the toughest obstacles faced by small businesses. Small business owners are rarely experts in bookkeeping themselves, and limited resources generally means that hiring an accounting team is out of the question. Therefore, SMEs have to explore other ways of staying productive while keeping things simple.
Over the course of this blog post, we’ll provide some useful tips on how small business can make accounts management a productive part of their operations.
Being Accurate with Your Records
Although small business owners are aware that online banking solutions can easily manage and track the majority of their daily business accounting operations. However, it’s still important to keep everything organized so you can avoid a chaotic situation in case there’s a request, or just for the sake of convenience and simplicity.
While online banking solutions can provide the information of credit and debits to your company’s accounts, you need to implement your own separate bookkeeping processes to keep track of where the money is coming from and where it’s being spent. This will keep everything organized and enable you to keep track of your firm’s income and expenses.
Therefore, it’s essential for SMEs to not become too reliant on just their online business solutions and have their own bookkeeping practices in place.
Utilize Cloud Accounting
Utilizing a robust and advanced cloud hosting solutions is one of the most convenient ways to simplify and enhance your firm’s accounting operations. An increasing number of SMEs are now starting to use online accounting software such as the QuickBooks cloud hosting solution in order to maximize efficiency and gain an edge over their competitors.
A cutting edge solution, cloud accounting involves a third-party provider hosting your accounting software on remote servers. Being similar in nature to the SaaS business model, cloud accounting solutions provide a variety of benefits to users. These include enhanced security, high uptime, anytime anywhere access, 24/7 customer support, a pay-as-you-go feature, and a lot more.
Furthermore, as cloud accounting solutions are so affordable, even businesses that have the tightest of budget restrictions can afford them.
Implement a Regular Payment Policy
While large amounts in your account receivables’ column are a desirable situation, you should know that it means nothing until the money is actually deposited to your account. Implement a regular payment policy to discourage your clients from delaying their payments. This’ll ensure that your business’s cash flow remains stable.
If clients are asking for purchases without clearing their old accounts, make your policy clear to them and ask to them to clear their older debts in order to make further purchases. A strict regular payments policy will bring efficiency and stability to your accounting operations, and will make sure that there’s actually money in your account instead of large amounts in your receivables column.
Re-evaluate Your Accounting Methods Periodically
Your business isn’t static or rigid and it’ll continue to change and evolve as it grows. In order to ensure that your accounting practices are in sync with the needs of your growing business, it’s important to re-assess and re-evaluate your chosen accounting solutions periodically.
When your firm is still in its infancy, it makes sense to opt for simple solutions such as a spreadsheet for the management of your accounts. However, as your business grows, your accounting operations will become increasingly complicated and you’ll surely need a more advanced accounting solution such as QuickBooks.
Business accounting software like a QuickBooks cloud hosting solution will bring simplicity to your accounting operations which will inevitably get more complicated as your business grows.
Proper accounting operations are pivotal to business growth and success. Therefore, it’s essential to invest the time it takes to find the right accounting solution for your firm. gotomyerp is an award-winning QuickBooks hosting provider. We can provide you with IT solutions that’ll help you manage your small business accounts seamlessly. Get in touch with us today.