Accountancy Tips To Save You Time

Photo of author

By Richard

As a business owner, time is one of your most valuable resources. Managing finances can be a time-consuming task, but it’s essential to keep your business running smoothly. By following some accountancy tips, you can save time and focus on growing your business. Here are some of the best accountancy tips to save a business owner time.

Watch Out For The ASC 842 Lease Accounting Update

If you’re a business in the USA the likelihood is you use some kind of lease. You might have a lease contract or lease agreement which allows you to use machinery, a building, vehicles, etc. These will help your business work, and without them your business might not function. Due to leases being worth quite a lot it’s important to get the accounting right. The ASC 842 lease accounting update has mandated all businesses, when accounting for their leases, to ensure they’re recorded on the balance sheet. As a business owner you’re going to have to apply the ASC 842 lease accounting update. We’ll touch on software shortly, but that can help, as can hiring an accountant. The point is, keep an eye on this accounting update because if you miss it you’ll end up having to do your lease accounting all over again.

Use accounting software

One of the best ways to save time is to use accounting software. Accounting software can automate many accounting tasks, such as invoicing, payroll, and bookkeeping. By using accounting software, you can save time and avoid errors that can occur when managing finances manually. Some popular accounting software includes QuickBooks, Xero, and FreshBooks. Additionally, you might want to use specific software for certain tasks like the above mentioned lease accounting. If you’re not sure what to use, speak to an accountant.

Keep track of your expenses

Keeping track of your expenses is essential for managing your finances. By tracking your expenses, you can identify areas where you can cut costs and increase your profits. One way to do this is to use expense tracking software, which can automate the process of tracking your expenses. You can also use a business credit card to separate your business expenses from your personal expenses.

Some people like to just use an excel spreadsheet for this, whereas others will use more specialized software depending on what level of bookkeeping you actually need long term. Business owners usually start small and go to larger software later on.

Automate your billing

Automating your billing process can save you a significant amount of time. By automating your billing, you can avoid the tedious task of manually creating invoices and sending them to your clients. You can use invoicing software to automate your billing process and send invoices to your clients automatically. You can also set up recurring invoices for clients who require regular billing.

Keep your receipts organized

Keeping your receipts organized can save you time when it’s time to file your taxes. You can use receipt tracking software to scan and store your receipts electronically. This makes it easy to track your expenses and ensures that you have all the documentation you need for tax purposes.

In the end, you need to invest a little bit of time short term, to ensure you can save time long term. Once your systems and processes are all set up and ready to go you’ll be able to properly watch things flow and dedicate time to your actual business instead of all of the accounting processes.

Images Courtesy of DepositPhotos