Bookkeeping is a critical and often overlooked, part of small business success. The “good enough” bookkeeping tools and processes that many small businesses invest in will not give you the freedom and flexibility you need.
Take advantage of these three best practices to up your bookkeeping game—so you can stay organized and focused on the core of your business.
Best practice #1: Invest in the right accounting software
We cannot emphasize enough that you must invest in a solid accounting software solution. Flexible, high-powered ERP software like Sage Intacct, the best-in-class cloud-based accounting software solution, provides the foundation for every other aspect of your bookkeeping processes.
With a solution like Sage Intacct, you can automate basic accounting tasks, reducing the amount of time you need to spend on them. Plus, features such as customizable dashboards and advanced reporting capabilities will help you make better business decisions.
Remember: It’s not only about what tasks you need to perform right now but also about investing in a solution to meet your needs as your business grows.
Best practice #2: Stay on top of accounts payable and receivable
Small businesses can’t afford to lose track of how much money is coming in and how much is going out, and yet that’s exactly what derails many organizations. Make sure you tighten your accounts payable and accounts receivable policies, train your employees on how to follow them, and update them regularly based on customer and client feedback.
To keep accounts payable and accounts receivable from becoming deeply time-consuming tasks, it also makes sense to look for ways to automate as many steps as possible. With the right software, you should be able to avoid late fees, reduce sales outstanding days, and meet client demands without requiring a lot of tedious and costly hours from your staff.
Best practice #3: Evaluate your insourcing, co-sourcing, and outsourcing options
Some small businesses prefer to insource, employing a bookkeeping and accounting team. Others co-source, with employees performing some functions and others being done by outside consultants. And still others choose to outsource all of their accounting functions, enabling the internal team to focus on more business-critical concerns.
The model you choose will depend on myriad factors. What’s most important is that you recognize the choice and plan for the future of your organization—before you get overwhelmed. If your business keeps growing, which model will help you meet your increasing needs? And if your business goes through ups and downs, which model will give you the flexibility you need?
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Insero & Co. is a public accounting firm with decades of experience working with both small and large businesses. Our experts deliver customized consulting services, including serving as an extension of our clients’ accounting departments and filling specific positions to meet immediate needs.
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About the Author: Kimberly Gangi
