How to Develop and Improve Accounting Systems

Every business needs a good accounting system, but putting one in place is much easier said than done. Even improving an existing accounting system can be a struggle if you’re not sure what gaps exist in your system, so here are some ways you can identify your needs, and then either develop a new accounting system or improve your existing accounting system to meet those needs.

Identify Your Needs

You can’t make sure all your needs are met until you know what all your needs are. A lot of the basic accounting capabilities are standard across different accounting software operating systems, but there are also many capabilities that set accounting software apart from each other. Knowing what you need will help you determine which software you need, so start by figuring that out before doing anything else.

For example, do you have just one person creating invoices and entering expenses, or will you need a system where multiple people can sign in with their own username and update your account?

Automate as Much as Possible

Bookkeeping involves a lot of tedious, repetitive tasks, especially if you’re entering the same expenses or creating the same invoices month after month. The good news is you can automate a lot of these tasks by creating recurring invoices and recurring expenses in your accounting software.

Again, keep in mind that not all accounting software has every capability, so do your research before you decide on an accounting software to make sure it can do everything you need it to do. 

With some accounting software you can create recurring invoices and expenses, but only with some of the higher payment levels. So, in addition to doing your research into each available accounting software, you should also research each plan they offer to make sure you buy the plan that meets all your needs.

Minimize Paper

One of the great things about accounting software is it eliminates the need for paper. When used properly, just about any accounting software should give you the ability to record expenses, create and send invoices, receive payment, create reports, and more, all without paper. You’ll need an accounting software with cloud storage, as well as the ability to connect to your bank account so it can automatically transfer payments to your bank account once they’ve been received. There is usually a fee associated with the direct deposit, but the time saved from signing checks, making trips to and from the bank, and waiting for the teller to make the deposit for you is well worth the fee.

And, as a bonus, you’re helping out the environment by reducing the amount of paper you use and ultimately throw away.

Just keep in mind that just because your accounting software is connected to your bank account does not mean you don’t have to balance your books. You still need to check your records against your bank statement at least once a month (preferably once a week) to make sure everything is in order.

If that’s something you’d rather hand off to someone else, that’s why The Bookkeeping Doctor is here. I also help with financial planning so you can make better business decisions based on your financial situation. If you’re ready for someone who can help you create a thriving business, just fill out this form to schedule your FREE consultation.