July 25, 2020
Stamp out all Bookkeeping and Accounting Troubles in a Single Go
Bookkeeping is an important process for any business whether small, medium or large scale enterprise. It is the gateway to understanding how a business is performing in terms of profitability first, and to determine whether stated objectives are being met at defined times. Bookkeeping is the first step in accounting and any mistakes or errors that creep in here can lead to serious consequences later on.
The Trouble Spot
Failure to record transactions immediately as it unfurls is the first reason for most accounting ills. Sometimes businesses are so lethargic that they won’t reduce expenses and money receipts into writing instantly. It is not uncommon for some businesses (especially small businesses) to simply jot down transactions on a piece of paper only to lose it and then guess an amount later. Little we need to tell how a business can lose tons of money or lose reputation when bookkeeping entries are full of errors.
Bookkeeping automation can help businesses from falling into these kinds of self traps. If your daily chores make it difficult to record every transaction, consider hiring a business accounting expert, who can organize a team of bookkeepers at your premises.
Dedicated bookkeepers will record transactions immediately unlike a business manager who might have other functions to perform. Alternatively, you can consider outsourcing bookkeeping functions to a CPA firm. CPA firms employ dozens of bookkeepers and seldom will they miss an entry.
Bookkeeping automation alone is not an end in itself for solving all accounting problems; there are yet other problematic areas that manual accounting lacks. Here are a few:
A/R (Accounts Receivables)
If you are aiming for a streamlined cash flow for your business then you need to ensure that the A/R processing is near perfect in your organization. Though A/R is a difficult area in which grappling with difficult customers cost businesses a lot of money, we should neither forget that poor invoicing practices too play their role.
Preparing an invoice manually even for a few bills will not ensure quality invoices. When you present an invoice that contains just even a single, you will not only not get paid but also lose your reputation. We don’t have to tell how reputation can make or break a business. Ensure that invoicing receives top priority when your accounting goes automatic.
VMS (Vendor Management System) Automation
Just as it is important to receive payment, so is paying your bills on time. Delayed payments, deductions made for no tenable reasons or overcharging taxes are a few critical points that you need to address. When your VMS (manually done) is prone to human errors because a lot of input needs to be obtained from different departments even within a single organization, the chances of human failure increases telescopically. Accounting automation takes the human factor out and ensures that payment is done strictly as per norms.
CONSULT ® is a multi-pronged accounting tool highly preferred by the staffing industry for billing automation. It is packed with features that go beyond even the savviest demands of the industry.