Every Bookkeeping System Needs This

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If you run a business, you need a bookkeeping system. Not only that, but you need a bookkeeping system that works.

As a professional in the industry, I understand what each business needs. So here are the top 5 factors your bookkeeping system doesn’t have.

1.    Chart of Accounts

Keep your chart of accounts simple but informative. Consider what information you need regularly and include it in your chart of accounts. Then, as you get used to bookkeeping and want more specialized reports, you can add to your chart to provide the information you want in real-time.

2.    Electronic Payments

Whether you have a POS or accept online payments through QuickBooks Payment Services, automate as much as possible. For example, with electronic payments, you don’t have to track your income manually and can easily prepare reports.

3.    Automatic Bill Payment and Payroll

Again, automating as much as possible will ensure you have the information you need in real-time. You don’t have to worry about manual errors or forgetting to input information. Everything is done for you, and your reports are ready when you need them.

4.    Regular Reviews

While automation is great, and you should take advantage of it, there should always be someone overseeing the process. If you don’t have the time or ability, hiring a reputable financial professional to handle it for you is essential.

Not only should someone ensure all data is correct, but your automated information must be reconciled with your statements to ensure accuracy.

5.    The Ability to Forecast

The data provided in your reports should help you forecast for the future. So whether you’re thinking about expanding, adding more products, or changing gears, your financial reports should tell you in real time where you stand.

Forecasting helps you understand your company’s possibilities and any issues that might pop up. Then, you can play around with the numbers to see how they might affect your bottom line or turn out in different scenarios.

Final Thoughts

The right bookkeeping system will help you make important decisions about your business. The right plan could help you understand any problems ahead of time and how to problem solve them. It could also motivate you to keep doing what you’re doing because things are going well.

Either way, if you’re not comfortable bookkeeping or need someone to oversee what you’re doing, contact me today and let me help you get things on track.

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