Although considered a low-level accounting function, bookkeeping provides a snapshot of a company's financial condition. So when there's a lack of processes in place, things can get muddy – from outdated technology and undocumented knowledge to a lack of professional talent. Read on to see the top four ways to improve your bookkeeping process and get back to focusing on what matters, and look out for an easy-to-reference infographic at the bottom of this page.
Ensure You're Using the Right Technology to Improve Bookkeeping
There's nothing more frustrating than working with outdated technology. And if you're job requires to you look at numbers all day — like bookkeeping does — this could be a hindrance. Fortunately, it's an easy fix that involves moving from basic spreadsheets to software that handles all the calculations for you. In fact, Excel formulas are prone to errors and in finance and accounting, an error could cost your business. The solution? Get your data into a cloud-based platform such as SAP. Cloud-based platforms protect your data and allow for increased efficiency.
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Document Your Process
People leave companies for a variety of reasons — turnover is inevitable. But what happens when a team member leaves, and they take that knowledge with them? It's a sticky situation that leaves managers scrambling to pick up the pieces (on top of their current job responsibilities). Tribal knowledge, although great for a moment, can be detrimental to a company if it's left in the hands of one person. Don't rely on tribal knowledge. Have your employees take the time to document what they do and how they do it.
Automate What You Can to Improve Bookkeeping
We live in a world where automating tasks becomes second nature. It's no different in the finance and accounting sphere. Automating bookkeeping processes means freeing up your team for other tasks they wouldn't have otherwise had the time to accomplish. And while you can't automate everything – data entry, transaction support, and general accounting - you can automate low-impact tasks that allow your team to focus on strategy.
Get The Bookkeeping Help You Need
Let this year be the year you offload your accounting processes – like bookkeeping – and focus more on big picture items like strategy. So how can companies get more bang for their buck while alleviating the pain points they're experiencing in their day-to-day operations? Partnering with a Virtual Accounting Talent provider. Outsourcing doesn't have to be a dirty word. In fact, all you need is the right partner like Personiv.
Still need help refining your bookkeeping process?
At Personiv, we've been working with clients for over 35 years to help streamline their accounting functions - and we can help you too. Get in touch with one of our experts to see how we can help you take the step in the right direction and improve your bookkeeping processes.
Need to keep this information handy? Make sure to download our top ways to improve your bookkeeping process infographic below.