One of the things we always see with our clients is the amount of time and money they spend on routine bookkeeping tasks. Imagine what you could do with your business if the person who currently handles your bookkeeping could reduce their time spent on these tasks by 50-70%! This means that you will have at no additional cost for two weeks of the month to get to those things you have been trying to do to drive more business to you. Some suggestions might be:
- Update your website
- Start or increase your social media presence
- Collect past due accounts
- Increase customer service response time
- Accomplish marketing and public relations goals
Want to know how to find all of this time to get a new part-time assistant?
Here are our top five tips to reduce both of these dramatically:
- Eliminate paper – you should begin your process by eliminating ALL paper. This does not mean everything you have, it means everything from the beginning of the next month forward. Scan all of your documents to online services such as DropBox or Box. We have been using a Fujitsu ScanSnap for years with great success. This means the paper is only handled once and you will eliminate the costs of file cabinets, copies, and storage. You will be able to retrieve a digital image much faster than trying to find something in file cabinets.
- Eliminate entering vendor invoices – have your vendors send invoices to you by email so that they are all ready to be filed and the paper is eliminated. If you want to take this a step further, consider something like Bill.Com that receives the invoices and automatically populates your accounting system with the information and attaches the vendor bill.
- Eliminate matching customer payments – use online solutions such as Xero and Paypal to have payments automatically retrieved into your accounting program and matched to the invoice.
- Eliminate bank reconciliations – use accounting programs such as Xero that eliminate the reconciliation entirely, because you are daily reconciling between your books and banks by automatically importing cleared transactions and have them matched to your existing vendors and categorized to the correct account.
- Eliminate time spent with your current accounting program – chose an alternative to QuickBooks desktop. There are a lot of cloud-based solutions. We recommend Xero because it is extremely easy to use for non-accountants and has features that allow you to automate a lot of tasks. IF set up correctly, coding the transactions for the day becomes simply pressing an OK button if the bank transaction is properly coded to the vendor and account.
You will be amazed at how much the office paper work has consumed your company and how simple it becomes after it gets filed immediately and is accessible wherever you are. You will also see if you adopt the above suggestions how much additional time your current bookkeeper will have and be able to help you in other areas of your business to make it grow!