It happens to most businesses that don’t have modern DMS systems. Things get messy, filing gets put off, and you’re playing catch-up with your bookkeeping procedures. If you find yourself in a situation where you are facing:
- Missed tax deductions or credits
- Inability to find critical records
- Inaccurate picture of financial health
- Trouble getting business loans or investments
- Record inconsistencies
- Penalties for incorrect or late filings
- A wrong view of your company’s financial health
It Takes Time to Unclutter, So Get Started
If you feel that your company can’t seem to stay current with your bookkeeping activities, here are a few tips that will get you back on track.
- Check for data entry errors.
When data is entered manually, duplicate or missing entries are almost always entered. Inaccurate information in your books causes issues – lots of associated problems. Take time to review data entry errors daily or, at the very minimum, weekly.
Suppose you don’t have a solid system for reconciling your internal books with your external accounts (i.e., bank accounts). In that case, you will probably do not have a realistic idea of what is happening with your assets and liabilities. The often forgotten transactions are bank service fees, interest earned, non-sufficient funds, outstanding checks, and deposits in transit.
After you isolate any entry errors and finish reconciling your account, make sure that you have accounted for each category:
Accruals – Revenues or expenses not recorded, received, or paid
Deferrals – Revenues or costs that have been prematurely recorded
Estimates – Allowance for accounts that are non-cash items
Are there duplicates?
Find and remove duplicates by reconciling your accounts. Too much clutter will give you an inaccurate picture of the company’s financial state. Do you have more or less money and assets than you think? That’s not a trick question! You need to know how your business is doing.
Upgrade your system!
You’re not in Kansas anymore! A cluttered financial system is a one-way ticket to business failure. If you haven’t investigated fully digitized financial software, you’re in for a real treat. LedgerDocs is perfect for accountants, bookkeepers, and other business enterprises. You’ll be able to share, store, and manage essential accounting documents in the cloud.
That means having everything in one location that is easy to access and control. It takes away all your reasons to continue running your financial with a backlog of catch-up duties. You will be working with an application that provides:
- Multiple ways to upload. Your documents will always be accessible when you need them
- Easy to view important documents up close in our LedgerDocs Document Viewer
- A bridge between your documents by syncing QuickBooks Online and Dropbox
- The ability to set a schedule to pull statements from banks/credit unions
- Easy search to find documents in thumbnail view or by using advanced search options
- A means to upload documents in seconds using your smartphone, scanner, email, or Dropbox accounts