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Best practices to streamline your accounting process

By Sharad Acharya, technical content writer at Ace Cloud Hosting

The accounting department is the heart and soul of every business. The accountants handle critical information about the company that decides its growth and productivity. Suffice to say that the accounting process should be the most efficient one.

Improving the workflow of your accounting also leads to fewer discrepancies in financial records. It enables a smooth flow of information among the business pipeline, which helps in optimizing time management.

Here are some ways that you can adopt in your business process to streamline your accounting.

  • Automate accounting tasks

The accounting department already has a lot on their plate and deserve all the help they need to improve the workflow.This can be achieved with the latest accounting software solutions available nowadays. These solutions can automate the day-to-day accounting tasks saving a lot of time and effort.

Moreover, with the advancements in technology, a majority of professionals are moving towards more advisory roles. Accounting software like QuickBooks automate processes like payments and invoicing, helping accountants do more in less time. Hence, it is imperative for you to purchase the best accounting solution according to your business type among a plethora of options.

  • Adopt a collaborative solution

In order to streamline the accounting process, you need to keep track of the operations at all times. Moreover, you must also be in contact with your accounting team, whenever required. You need to share documents with the accounting team and ask for financial records on a regular basis.

Hence, it calls for a platform that introduces collaboration and mobility into your accounting process. Cloud technology is one such platform that gives you the ability to access the accounting applications and data from remote locations at any time. Moreover, when your accounting process is hosted on the cloud, you can share files directly with the accounting team by giving them access to the cloud portal. It helps in streamlining the data flow between the organizations.

  • Hire professionals

Most often, the entrepreneurs, in order to save a part of their expenses, tend to handle the accounting process in-house. However, with the changing dynamics of their business, it becomes increasingly difficult to track cash flows and maintain balance sheets.

Hence, it is recommended that you hire accounting professionals for your business. This might cost you a part of your budget, but the expertise that these accounting professionals bring can only mean profits in the long-run. Moreover, outsourcing the accounting process also means that you have one less thing to worry about, letting you focus on other core processes

  • Plan the annual budget

Planning is important in every department to anticipate market changes and draft strategies accordingly. However, when it comes to accounting, planning the annual budget is even more imperative.

Try to involve all the departments before planning an annual budget. Also, you should identify all the expenses, both operational and capital, that you anticipate during the fiscal year. However, the budgeting process always needs to be a dynamic one. There will always be unexpected expenses throughout the year that need to be evaluated. Hence, try to analyze and make amendments to your budgets on a quarterly basis.

  • Reconcile your bank accounts

Bank Reconciliation of all your accounts should be done regularly to identify any discrepancies in your finances. When you match your financial records with your bank statements, it tells you if some transactions were carried out without the proper authority. Hence, bank account reconciliation helps you identify frauds.

Moreover, you can also analyze your bank accounts for any transactional error, keeping track of outstanding payments, and managing the funds. However, it is necessary to carry out this process regularly (preferably on a monthly basis) so that the discrepancies can be rectified before it is too late.

  • File taxes early

A grave mistake that the businesses make is procrastinating from filing taxes till the last month.As tax processes keep on changing constantly, the last-minute hurry leads to errors in tax filing. Moreover, you also do not have sufficient time to identify and make all the tax deductions, which could lower your taxable income.

Hence, to file your taxes without a fuss, try to do so two to three weeks prior to the deadline. Tax filing, being a critical process, needs to be carried out with time in hand so that there is no scope of errors.

Final note

Streamlining the accounting process leads to business growth. It helps accounting professionals save time wasted in doing menial tasks, which they can utilize in offering financial advice and drafting strategies for your company. Adopting best practices to streamline your accounting process may demand time and efforts initially but will eventually lead to lucrative results in the long run.

Sharad Acharya is a technical content writer at Ace Cloud Hosting, a renowned application hosting provider to the accounting industry and an Intuit Commerical Host for QuickBooks Software. When not writing about the latest developments in cloud accounting, VDI, and cybersecurity, he loves to watch movies and ride bikes. You can follow him on Twitter and LinkedIn.