Running a business is rewarding, but also insanely time-consuming.
According to a 2015 Constant Contact survey, over 40% of small business owners say they don’t take vacations, while another 40% say they don’t have enough time to spend with their friends and family.
Despite this, an overwhelming 84% of the same business owners say given a second chance, they would make the same choices again.
And this begs the question: How do you save time while handling all the accounting and management tasks of your business? In this article, we’ll explore 5 small business accounting tips that will help you save time.
1. Consider Hiring a CPA, Even If It’s Temporary
When it comes to running a business, time management is critical.
According to Oberlo, creating a plan of action is necessary to prioritize your resources, and ensure optimal time management, especially if you run an e-commerce store. As such, you may want to hire a professional to handle your accounting so you can focus more on strategic tasks.
Hiring a CPA can make a huge difference in your business performance and time-saving. Sure, you can hire a bookkeeper at a fraction of the cost of hiring a CPA. But CPAs are more adept in handling tax and complex business accounting tasks.
Besides accounting; CPAs can also help you with strategic planning. This explains why CPAs are in high demand in virtually all industries. In fact, industry statistics project employment for accountants and auditors to increase to 1,475,100 by 2024—an 11% growth from 2014.
Moreover, a CPA can help you take full advantage of tax benefits–something that can give you huge savings in taxation. When you hire a professional, you’ll be able to focus on other tasks that require more time and attention.
2. Automate Invoices
You probably have recurring invoices that you send out every month. Automating this process such that the system will automatically be sending them out on a specified date can save you a considerable amount of time.
You can even set email alerts to remind your clients that their payment is due in X amount of days. This gives them more stability and insights into when to expect your invoices and how long they have until you start chasing them up for payment.
3. Track Every Expense
Track and categorize every expense and keep those receipts in an orderly manner. This will make it easy to access them fast should a need arise.
If possible, avoid cash payments. Using your credit card for business purchases will ensure you don’t end up with a drawer full of cash receipts to sort through. Another advantage of using a credit card is that you can earn rewards and cash backs for your spend.
4. Find the Right Accounting Software
Today, the market is flooded with a ton of accounting software. The trick is to find one that is right for your business.
Cloud-based accounting software like QuickBooks Online and FreshBooks are a great place to start. The best accounting software should help you track your income and expenditure, generate invoices, manage inventory, etc. It should also help you automate most of your processes and stay organized.
5. Use Automated Payroll
Processing all your employees’ paychecks manually can be tiresome and time-consuming. You have to check each employee’s data—pay rates, working hours, total wages, etc. Plus you’ll also have to sign and date the cheques and probably even mail them.
There’s an easier way to handle all of this, and that’s through automated payroll. An automated payroll system can do all the printing, signing, and dating work for you. Once you have approved the payments, checks are sent out right away. This not only saves you time but also facilitates faster payments which can motivate your employees.
We hope this article will give you some accounting ideas to help you save time for your small business. Feel free to comment and share.
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