It is absolutely fair to consider the accounting department as heart and soul of a company. Anything that goes on in your business from buying monthly stationary to adding a new client reflects in and affects the accounting system; and any minor error in one of the financial records can affect your business contrary to your expectations.
So it is very important for you to not only keep an eye on the functioning of your accounting department but also try and improve the system so that you can maintain the financial health of your business in the most efficient way. Here are a few ways to do that-
1. Leverage technology
Technology has been proving itself as a boon when it comes to simplifying complex work. Online cloud based accounting systems provide the opportunity of getting the work done quickly, accurately, easily, automatically and in a customized way. Most of the main ways of improving your accounting root to an online accounting system. So switching to a reliable accounting software like Giddh is the basic thing you should decide to do in order to improve accounting.
2. Automate tasks
Reduce manual labour as much as you can and opt automation for suitable tasks like generation of ledgers, invoices, financial statements, business reports etc. You can set a date of sending out the invoices to your clients and another date for paying bills to your suppliers. This will not only free you from the worry of missing deadlines but also get your work done in a faster, more accurate and systematic way. Moreover, you can save on your resources because a huge chunk of complex work like keeping a track of pending bills and unpaid invoices can be done in a very less time by just one software. All of this will ultimately help you in saving time, efforts, money and reduce the risk of any losses due to errors or delay in work.
3. Hiring outsourced accounting firms
Leaving the concern of your company’s critical figures in the hands of experts is the best thing to do. They, through their experience and expertise, can guide you well through the thick and thin of your business. They can acquaint you with all the opportunities of reducing cost, saving tax, and forthcoming financial crisis. Experts can help you analyse and interpret your profit-loss statements and determine the financial health of your business. This would in turn help you take proper business decisions.
4. Proper analysis
Only keeping a good record of financial details is not sufficient. You need to analyse it from time to time so as to get an idea of how well your strategies are working according to the plan. All your important business decisions are governed by the inferences drawn from the analysis. So you not only need to be able to get financial statements, business reports etc in time, but also draw conclusions from them. A good accounting software like Giddh can enable you to get inferences in the form of graphs, charts, tables etc.
5. Record everything
This is essentially important for SMEs because even small amount of money can reflect significantly overall. This means that missing the record of any purchase of inventory, raw material, or service, especially that with a recurring cost will create discrepancy in all of the following financial figures and you definitely don’t want that, do you? So if you want your accounting system to be reliable and accurate, you can certainly not afford missing out any data from being recorded. Develop transparency between accounting department and other departments of your business. The more information your accounting department gets of what’s going on in, the more information it can give you on what results you should expect and what actions you should take in near future.
For further assistance on accounting, contact team Giddh.