Every business needs a bookkeeper, but there may be something that yours isn’t telling you. We’ve compiled a list of the most common secrets your bookkeeper most likely wishes that you knew. They will help you save time and money in your business, and get the most out of the services that you shell out for.
1. Don’t Ignore Audits
Of course, no business owner wants to be audited but that doesn’t mean it won’t happen. Hiring a bookkeeper reduces the chance that this will happen to you, and help you to prepare if you do have to face one.
Don’t slack off and forget about your audit trails until you actually have to face one. Adopt a bill payment solution that creates audit trails for you. It needs to track every action in the system so that your records are as transparent as possible. That way if you do face an audit, you’re far less likely to receive a fine or lose your hair due to stress.
2. Use the Cloud
It amazes me how many business owners won’t adopt cloud-based accounting software. Cloud-based technology centralises your financial information. This makes it accessible from anywhere, at any time. This is a huge time-saver. It puts all your accounting records online. Retrieving old invoices from paper files becomes a thing of the past.
Furthermore, the cloud offers a range of security benefits. Permissions-based access gives you full control over which employees have access to information. Cloud data is encrypted and heavily protected. And your records are secure from physical damage. So fire and flood won’t destroy all your records.
3. Remote Working is the Way Forward
Your bookkeeper no longer needs to do house calls. With cloud technology accountants and bookkeepers can do their work remotely. Cloud-based software means your bookkeeper can handle their duties quickly and efficiently off-site. This increases flexibility and saves time for both parties.
4. Separate Your Duties
As a small business owner, there’s such a thing as being too trusting. No one wants to believe that their employees would steal from them. But internal theft is very common. According to the latest employee theft statistics, 75% of workers have stolen from their employers at least once. And employee theft costs UK businesses around £190m every year.
To prevent this, consider separating duties to limit fraudulent activities within your business. The employee who handles financial transactions should not be in charge of recording them. This makes it easier for them to misappropriate funds and cover up their fraudulent actions.
5. Avoid Double Data Entry
Double data entry means entering data from one system into another. This is a waste of time. And it increases the likelihood that your records will contain inaccuracies. This will compound and create a big problem later on. Instead, integrate your technologies so that your records stay accurate and up-to-date. Ask your bookkeeper to connect your cloud accounting software to your expense management system. This way your records stay accurate and you can put your time to better use.
By implementing these simple bookkeeping secrets, you can save time and money in your business. Take advantage of the power of cloud-based technology so you don’t waste time on tasks that would be better automated. Separate out duties to protect your business against employee theft. And keep your audit trails accurate and up-to-date.