Bookkeeping is an area of your business that doesn’t have to be impossible to handle. In fact, it’s an area that should and could be one of the easiest parts of your administrative and financial work. Why? Because it comes down to using the right tools, the right processes and the right management.
Bookkeeping tools have come a long way in the past few years. While it used to be about wielding clunky software suites that required installations, upgrades, manuals of a thousand pages and miles of menus, the tools available today are cloud based, streamlined and simplified. Tools like Xero for example can make handling the bookkeeping a lot easier, because it’s a beautifully designed package that can connect to your bank feeds, connect to your business software, and automate a lot of the work that you might have had to do manually before, meaning that your bookkeeper doesn’t have to chase you for information, records, data or anything else.
Processes are where bookkeeping can often get hard. Processes are what determine the way you maintain and manage your records, how you save and pass information along between your staff, your bookkeeper and your own filing. The important part is to make sure that these processes are noted and recorded and followed by all staff. What do you do with your receipts? When do you do it? Who handles them? How do you ensure that nothing falls through the cracks? These all come down to your processes.
Management & Communication
Managing bookkeeping comes down to communication. Communication between your team, your bookkeeper and your accountant. This communication ensures that key dates aren’t missed, questions are always answered and there are no misunderstandings. An effective bookkeeper will always keep this on track pro-actively, but as a business owner, you need to keep it on your radar and be aware of your bookkeeping as an ongoing activity!