What do you think about tracking account books in small business? Is it very easy? Let’s get an answer to these queries and learn how to manage your accounting books in a simple manner.
Manage Accounting Books
If you’ve been running a business for some time now, you must have experienced the ill-effects of not keeping your account books right. If you’ve gone through it, you’re certainly terrorised about how unproductive an unorganised business accounting can look like.
Keeping track of every Invoice, every payment, every single transaction detail is absolutely necessary for any small business. Only then can one know what has been purchased from which vendors, and which of their services or goods are rendered to customers both for the sake of tax filing and the very business growth.
Any businessmen (small or big) no matter to what industry sector he belongs to, he has to:
- Record every single transaction happening in the business.
- Maintain separate sections for paid, unpaid, due, overdue, partially paid transactions.
- Maintain separate account books/ sections for different modes of payment.
- Track total receivables and payables.
- Regularly check who owes him money.
- Follow up on unpaid customers with the right invoice numbers.
- Match late payments with the right invoices.
- Pay taxes and file returns accurately on time to avoid unnecessary penalties.
There’s more to it. But let me stop it here!
If you have ever tried to track and file invoices that have sat around for months, you know what I’m talking about. Well, it is important to realize that, doing all these tedious tasks makes you more an accountant rather than a businessman. It leaves you with very little time to run your business well.
Time is money and there are so many ways to put your time into better use. Right!
On the other hand, these accounting tasks and financial terms aren’t simple enough. It needs a lot of time and effort to keep everything in check. Let’s accept the reality: Won’t you find it hard to hunt through every paper copy in your account books to find out the right bill?
And just imagine having to turn the whole list of all the transactions that happened and then find out the unpaid ones.
Of course, it is definitely time-consuming to determine how much has been paid, when it has been paid, to whom it has been paid and what’s due overtime, etc.
Hence, it‘s of utmost importance to organize your paperwork regularly, but also to digitize our system where possible!
Accounting: What you need to focus on?
Never be old fashioned: Keep the Process current and updated
- When you’re old fashioned, you keep your paperwork in physical form. About once or twice a month, your store turns into paper for sure. Think about how much time, the paper you waste, and, on the other hand, how little time and space it takes for so much stuff to handle electronically.
- When your accounts are on paper, balancing receivables or payables takes a lot of time and can cause a severe headache! Whereas using a digital system can save you a lot of time, especially when you’re in a hurry and need to find something fast. Moreover, you can totally avoid losing thousands of rupees through messy filing and tracking. So, better think of a good accounting software.
- When you maintain your business accounts on books, there’s always a risk of losing business data. Lost information leads to lost money, and lost money equals a badly run business.
- Also, consider the times when you don’t receive instant payments? Is it possible to track which payments have been received and the ones that are pending? Well, you can do it if you deal with just a handful of invoices. But, if you’re replicating this effort for larger number of invoices, you’ll end up being exhausted. This shall further impact your business. Moreover, businesses have enough amount of people power or hours to dedicate to this effort. So, is it really worth it? Why not automate the processes?
Turn your Bookkeeping Digital with Business Accounting Software
What if I tell you that there is a smarter way to bookkeep and this could save a lot of your time? Yes, you heard it right! A business accounting software is a smarter tool to eliminate countless headaches and make your business life much easier. For this reason, it is no longer an option, it’s a necessity!
Business Accounting Software: Features
- You can trust digital systems for its math functionality. Your totals and taxes of the month add ups and yet even the decimal points of it can never go false.
- As the software does accurate processing that takes little time, it needs fewer human resources enabling faster payment to vendors and faster invoicing to customers as well.
- When invoices are digital, it’s easy to search, retrieve and process them further.
- Another advantage is that invoices can be sent to customers instantly through email, WhatsApp and SMS, reducing paper clutter and its costs.
- You can always take backups of your business data in seconds. This will ensure that you’ll never lose any of your important data.
Want to organise your bookkeeping and hence make your business digital? You can try one of the best billing software. What approach do you follow to manage your business accounting? Do you still keep digging into physical books or have you switched over to a modernised accounting platform? Feel free to share your feedback.
1 thought on “Tracking Account Books in Small Business: Is it possibly easy?”
Thanks for sharing this. Choosing accounting software or service is an important task for getting a business off the ground.