Proper bookkeeping, whether undertaken on accounting software or by hand, is fundamental to the operation of any company. Accurately knowing the ins-and-outs of how money flows in your organisation is crucial for financial analysis, knowing your tax obligations, and tracking payments. Ensuring that your books are reliable is of paramount importance to the future success of your business.
If you have a professional bookkeeper on staff, the reliability of your books will be entirely at the behest of his or her reliability. Using accounting software, on the other hand, can provide a number of checks and balances that can keep your books impeccable. Whichever method you choose, there are a number of points to consider to ensure that your bookkeeping is always up-to-date and accurate. Let’s take a look to see how this can be guaranteed.
Hire The Right Person Or Bookkeeping Firm
It is increasingly common for businesses to outsource their bookkeeping. Naturally, when committing to third-party control of your books, there are a number of things to be aware of to ensure that everything is kept reliable. Look for someone who has demonstrable attention to detail, and who is willing to learn the ins-and-outs of your unique business. Sometimes accountants will have a one-size-fits-all method for handling books, but you should look for a service that can cater specifically to your company.
Ideally you should ask around for referrals for particular accounting firms or software before you make your decision. Often word-of-mouth recommendations from existing clients can serve as the best barometer for gauging a firm’s reliability, it also cannot hurt to look at credentials and training backgrounds.
Finally, make sure that the firm or software handles your books in a clear and transparent manner. For example, you should be able to access and understand the software that your accountant is using in order to notice any mistakes or systematic errors.
Use The Right Accounting Software
If you’re choosing to use accounting software without outsourcing your bookkeeping work, make sure that the software is the right package for your business. Ensure that it’s compatible with the operating system you are using, and make sure that any and all staff that will input data into the system are well-trained in its use and are able to use it consistently. Choose software that has easy to access technical support, just in case you run into any problems down the line. Finally, ensure that the software is secure to prevent any outside access to your sensitive financial data.
To ensure the reliability of your bookkeeping, regardless of how it is handled, there are a number of best practices to follow. Be sure to retain important documents and implement a system to manage these files. This will allow you to verify the information in your system, while also coming in handy if and when you are audited.
Also try to keep your books updated on a day-to-day basis. This will allow you to catch any errors before they become problematic. You will also be ready for tax season without having to do a great deal of extra work. Keeping up-to-date books is a good practise to get into, and can deter potential fraudsters from taking advantage of your company. While this is something business owners would rather not think about, if the unthinkable happens you should be in the best position to deal with it.
Reliable Bookkeeping At Your Fingertips
Ensuring that your bookkeeping is reliable is a matter of planning how to organise your accounting systems and processes, and following these plans with consistency. Don’t become mired in chaotic and disorganised bookkeeping. The negative impact on your financial performance should be reason enough to avoid this and for you to take steps to ensure that your bookkeeping is always reliable, accurate and up-to-date going forward.