4 Essential Tips For Efficient Accounts Management
Updated: Dec 12, 2019
Closing a client, being paid, gaining success, taking the industry by storm.
These are just a few of the most common answers that young entrepreneurs mention when asked about their favourite part of running a business of their own. No matter how many entrepreneurs you speak to, chances are that no one will mention anything about “accounts management.”
Let’s face it: most entrepreneurs dread accounts management because of how time-consuming and stressful it can be; yet, there’s no denying the fact that it’s a vital process for success. Most young entrepreneurs rely on administrative employees to file documents and generate information that they can then use to make better business decisions. The truth, however, is that not all employees are reliable or honest.
Young entrepreneurs looking to bootstrap their startup or exercise more control over their business tend to handle their own accounting tasks as doing so gives them greater control over their numbers. The reality of running a business as a young entrepreneur, however, is that there aren’t enough hours in a day to do everything that must be done. This is particularly true when it comes to accounting.
Accounts management can be incredibly time-consuming as it involves a tremendous amount of detail. As a result, entrepreneurs often end up either spending way too much time keeping up or neglecting it completely. Fortunately, it is possible to avoid this problem with the help of a few simple, yet effective tips.
Tips to keep in mind for efficient accounts management
If you’ve been wishing for more hours in a day to dedicate to accounts management, there’s no need to wait on the impossible. Here are a few tips to help you optimize your accounting today:
Efficiency tip #1: Automate your invoicing
Accounts management is often considered to be one of the most time-consuming administrative tasks. One reason is that manual recording of invoice amounts can result in errors. Getting the numbers to all match up can be incredibly tedious. Aside from taking up a significant amount of time, manual end-of-month invoicing means that it’s easy to overlook one or two unpaid invoices, leading to wasted time and money. With the help of automated invoicing, however, business owners and tired accountants will no longer have to go through the exhausting week-long process of invoicing at the end of the month.
Automated invoicing can be achieved with the help of various accounting software options on the market, all of which automatically generate invoices that can be printed and emailed. Every accounting software is designed and developed to take the end-of-month invoicing load off your back, as they automatically feed invoice data into detailed accounting reports. There’s no doubt that this simple feature will save you hours of time each week!
Efficiency tip #2: Automate your expenses
While we’re on the topic of automation, did you know that automated expense reporting has saved businesses 30 to 40 hours of time per employee? Although a handful of business expenses may seem menial enough to record and track with ease, problems can arise when they add up. Automating your expense reporting process can significantly reduce the time you spend going over incurred costs. Certain processes, such as tracking down reports, coding receipts, and signing checks will no longer need to be completed manually when automated expense reporting is implemented.
Efficiency tip #3: Simplify your payments collection processes
Truth be told, most start-up businesses end up closing shop simply because of poor cash flow. Late payments and unpaid accounts receivables can severely disrupt operations and prevent growth. Although it may seem complicated at first thought, improving your payment and payment collection processes can be easy with a few tweaks. For instance, providing flexible payment options can lower the rates of late payments by making it easier for customers to pay their dues—a small change that can yield a major improvement in your accounts management processes.
Efficiency tip #4: Avoid cash as much as possible
Most young entrepreneurs make the mistake of prioritizing cash during transactions as a means to maintain accountability and keep an eye on the liquidity of their business. Unfortunately, dealing with cash means a repetitive counting process, which can take away one to two hours per day that could have been dedicated to another task. Additionally, cash payments have to be manually verified, generating various opportunities to commit costly examples of human error. To make things easier when managing your accounts, prioritize card payments over cash payments so every expense procedure is kept in check and automatically recorded.
In spite of the fact that accounts management is the most tedious process to work with, implementing the right steps to optimize your operations can go a long way. Once the previously mentioned steps in this guide have been put into place, you’ll find that it is much easier to balance accounts management with your other business tasks! Good luck!
If you’re looking for a business accountant on the Gold Coast, get in touch with us today! We’re happy to help.