20 Nov Automating The Accounting Process
With the various accounting systems available today, small businesses have the opportunity to eliminate manual tasks by utilizing the features offered by accounting systems. Taking advantage of these features in QuickBooks online (or Xero accounting) can substantially reduce the amount of time spent on the bookkeeping & accounting process. Below are a few tips that can be used to automate processes within your small business.
Move from QuickBooks Desktop to QuickBooks Online.
If you’re still using the desktop version of QuickBooks, it might be worth it to make the switch to QuickBooks online. The online version has several advantages, but most importantly, it will substantially reduce the need for manual data entry. It will also make it easier for various users to update the company file since it’s on the cloud and can be accessed from anywhere.
Link your bank accounts to QuickBooks Online or Xero Accounting.
Once you have migrated to the online version of QuickBooks, you will want to start linking your bank and credit card accounts to the online file. Linking the accounts will allow bank transactions to automatically flow through to your QuickBooks (or Xero) company file, eliminating the need to manually upload transactions. Automating this process not only saves time, but will also reduce errors associated with manual data entry (fat-finger entries, duplicates, etc.). Once the transactions are flowing through to QuickBooks Online, you will still need to categorize and confirm each item, but it will take much less time than adding each individually.
The process of migrating from QuickBooks desktop to QuickBooks online can be tricky, so make sure to hire a professional if you are not familiar with the process. Norton Financials has performed these conversions for many companies, and can help ensure your company has a smooth transition to the online version of QuickBooks.
Enhance the Payables Process.
Many businesses still use physical checks to make payments to vendors. Although it can be useful for certain payments, others can be expedited by making payments online. Routine payments such as utilities, phone bills, and monthly subscriptions can be made online instead of printing physical checks and sending by mail. You not only eliminate the cost of getting physical checks and paying to have them mailed, but you can also get rid of late fees associated with checks that do not arrive to your vendor by the due date.
Instead, you can either have the vendor auto-debit your account on the due date or obtain login details and manually make the payment to your vendor through their online payment portal.
Automate Invoicing and Accounts Receivable.
Automating the invoicing can drastically speed up the time it takes to receive payments from your customers. The easiest way to do this is to send invoices online to your customers through QuickBooks. Sending invoices online will allow your customers to make payments via credit card on the spot (as opposed to sending checks). This also reduces the need to mail invoices to clients, which also speeds up the time it takes for you to get paid.