In the world of business, efficiency is the key. One area where efficiency can make a significant difference is in accounting. QuickBooks and other accounting software offer features that can automate many aspects of your accounting processes. This blog post will show some of the areas in which you can automate your accounting.
Why Automate Your Accounting Processes?
You should automate you accounting processes, because the manual accounting processes can be time-consuming and can lead you to errors. Automation not only saves time but also increases accuracy, provides real-time data, and allows for better financial management. This being said, this doesn’t mean you can only rely on your software. The software can make mistakes if not set-up properly. That is why you should always reconcile your books and ensure that you have accurate financial statements. Before preparing your tax return, we recommend that each account on the Balance Sheet is reviewed and reconciled. And each account on your Profit & Loss statement is reviewed and corrected if necessary.
Automating Invoicing
One of the most tedious tasks in accounting is invoicing. Most accounting software have an option to automate invoicing. You can schedule your invoices, if your operation allows it, to be sent out at regular intervals. This can ensure timely billing without the need for manual intervention. For example, QuickBooks allows you to automate this process by setting up recurring invoices.
Automating Expense Tracking
Importing transactions using a bank feed is one of the most common features offered by accounting software. You should fully take advantage of this feature. For example, with QuickBooks, you can connect your bank account or credit card to automatically import and categorize transactions. This eliminates the need for manual data entry and makes expense tracking effortless, provided that you set up the bank rules properly and you review your books on a regular basis.
It takes accounting and tax knowledge to have accurate financial statements on a tax basis of accounting and can be difficult for a business owner to focus on this aspect. We offer monthly and quarterly services to include review and correction of your books, tax planning and tax savings strategies, tax filings and more that can save you time and provide peace of mind that you do not get in trouble with the IRS and that you take advantage of all the tax savings tools avilable to you.
Automating Reports
If your accounting software has the option to automatically generate and email you on a regular basis reports such as Balance Sheet and Profit & Loss statement, we recommend you set this up. This can help you and your accountant make more informed business decisions. It can also bring to light any tax traps that you might not be aware of otherwise, until tax time.
Automating Payroll
There are many payroll software companies that offer automated payroll services. Again, it is really important to have the initial payroll set up correctly and then every time you have a new employee to set up that employee correctly in the payroll module. You should still be aware of the regulations and the paperwork you need to have when you hire. Even with an automated payroll system, you should still reconcile your payroll tax returns, such as 941 or 940 forms, the state unemployment tax returns, W-3 and W-2 forms, etc. with your General Ledger to ensure accurate filings and financials.
Conclusion
Automating your accounting processes with your accounting software, not only saves you valuable time but also can provide accurate, up-to-date financial data, as long as the automation is done properly. Automation allows you to focus more on growing your business and spend less time on manual bookkeeping tasks, but we always recommend having a professional overseeing your accounting processes.
If you want to automate your accounting system and need help with keeping your financials accurate and audit proof, click here to find out more about our services.
This material is for informational purposes only. It does not constitute tax, legal or accounting advice.