Does it seem like every time you plan to work on your business’s books you find other ways to distract yourself and put it off? If so you’re not alone. Studies have shown tackling the books is one of a business owner’s biggest headache.
The ever-growing list of regulations and requirements is mind-boggling, not to mention the amount of time it takes to keep the books.
Luckily, there’s technology that can help any business owner make sense of their bookkeeping and make the task less of a chore.
1) Use Online Bookkeeping
Josh Wheeler, COO of SimpleX Payroll, notes technology has changed considerably over the last five years to help small and medium-sized businesses succeed. Access to online tools such as Google Analytics, online bookkeeping, online phone systems, outsourcing software, and administrative software have completely changed what businesses can do.
“Today any business with knowledge of the proper resources has the ability to set up enterprise level business systems at a low cost to provide an air of professionalism and new insights for their customers and their industry,” he says. “The online bookkeeping software (such as Freshbooks, QuickBooks, and Paychex) now allows business owners to update or inspect how their company is doing with only a few clicks on a smart device. This technology also allows them to complete invoicing, accounts payable and much more from anywhere with an Internet connection.”
2) Find the Right Dashboard
Sabrina Parsons, CEO of Palo Alto Software, says since most business owners don’t start their company with a business or financial background, many are often thrown by how much financial know-how is necessary to keep their business afloat.
“Bookkeeping is often very overwhelming,” she says. “It’s important to find a financial planning dashboard that’s integrated with existing accounting and banking software.”
The best financial dashboards manage information on financial performance, financial comparisons, accounts payable, accounts receivable and cash flow.
“When businesses can track this in a dashboard, they gain in efficiency, visibility and overall comfort with handling financial matters,” Parsons says.
3) Integrate Technology with an Accountant
Among U.S. business owners, 89 percent of respondents in an accountant usage study conducted by Sage agreed that working with an accountant was a critical element in their success.
Jennifer Warawa, vice president and general manager of Sage Accountant Solutions at Sage North America, observes that business owners need to spend their time building a business rather than worrying about tracking expenses, updating ledgers, and creating reports, which is why collaborating with an accountant is important to success.
“Using technology to automate your processes and working with an accountant can give your business a competitive edge, and get you back to doing what you love,” she says. “Accountants will take on the heavy lifting of many different aspects of your business. For instance, if all your data is just ‘sitting’ in a database and you’re not interpreting, analyzing or using it to help drive your business direction and decisions, then you’re missing out on a great opportunity.”
4) Use the Right Software
Andrew Wicklander, founder of Tula software, points out that not every software is right for every business, and due diligence is required. Planning ahead will save you time and money in the long run.
“My wife became frustrated while looking for business software to help run her independent yoga studio here in Chicago, and finding nothing that was a good fit, we decided to build something ourselves,” he says. “There are more and more options out there every day—find something that does what you need it to do, at a price you can afford. Don’t settle for inferior software, it will only hurt your business.”
The days of struggling to do the books by yourself are officially over. Now thanks to technology, after a little work setting up the right system for you, large portions of this chore can be automated—and optimized—not only giving you more time to focus on your business, but the ability to find value in areas you never could before.
planning, efficiency, collaboration, small business, productivity