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HOW TO OPTIMIZE YOUR BUSINESS ACCOUNTING SYSTEM AND PROCESS TO BUILD A PROFIT MACHINE

Money brings the world and our business closer together. So, it happens that the welfare of the business depends entirely on the procedures, policies of its bookkeeping and accounting department.

Without a comprehensive accounting system, you run your business in financial darkness and run the risk of running out of cash flow, internal fraud, tax penalties and potential failure.

 Don’t ignore these 13 accounting best practices

 When establishing or overhauling your company's accounting system, processes, policies and procedures, be sure to cover all of your back office bases with the thirteen business bookkeeping and accounting essentials.

1.     Dedicated business accounts

Many companies have taken this step, but it is remarkable. Your business bank accounts and credit cards must be completely separate from personal accounts for the benefit of tracking costs and income.

2.     Expense management

You need to have a system in place to manage staff costs and reimburse them for these costs. Recording of expenses (tracking receipts) in your system, taking into account the purpose of the expenses and when the expenses are reimbursed must be in place for recording.

If your employees do not have access to business credit or debit card, you must also develop a standard procedure for reporting expenses and requesting reimbursement.

In addition to tracking staff reimbursement for expenses, you should also classify expenses for management report and tax filing purposes. To do this, you must establish two separate charts of accounts: one organized for taxes and one to manage management accounts.

3.     Accounts Payable Management

Without a complete system for managing paying accounts, you risk your business's reputation and unnecessary costs of late fees and interest. Pay all your bills on time or early when a discount will be given for timely payment.

4.     Accounts receivable management

To manage accounts receivable, you need system credits, policies and customer credit assessment procedures, educating customers about your payment expectations and procedures, creating receipts, sending invoices to customers accurately and quickly, tracking received payments and tracking past payment accounts.

5.     Training of bookkeeping and accounting staff

All new employees should be properly trained in any type of bookkeeping and accounting process that will affect them. The staff working in the bookkeeping and accounting department should understand any process for which they are responsible or the process for which they will act as a backup. Employees outside the bookkeeping and accounting department should be trained to ensure that they are aware of expectations regarding cost tracking, time tracking and payroll.

6.     Income (profit and loss) statements, balance sheets and annual financial reports

When your bookkeeping and accounting department is working on recording expenses and earnings, there should be a rush to generate these required financial reports. You should review your income statements and balance sheets on a regular basis (monthly or quarterly) and always look at your business's financial year with an annual report.

Implement systems that allow you to measure and track important financial metrics to ensure accurate and timely generation of all financial reports.

7.     Cash flow forecast

You should also keep a timely cash flow statement to assist in the process of forecasting cash flow. Unexpected cash flow shortages can put your business in real bondage, forcing owners to make unplanned financial decisions, such as taking out high-interest loans or selling equities to keep up with the lack of interest.

 The cash flow forecast allows you to tell when a cash flow shortage occurs and is strongly financially prepared to avoid before a problem arises.

8.     Tax planning, tax preparation and Income Tax filing

If you're always "tax-ready", the tax season doesn't have to be a source of panic and stress. If you have organized your previous office to plan and prepare for the tax season throughout the year, you should have all the items you need and it is time to pay all the entries on file.

9.     Sales tax management

Speaking of taxes, quarterly and year-end taxes are not the only taxes that can cause stress in the bookkeeping and accounting departments; Sales tax occurs daily. Businesses dealing with sales taxes need to keep track of changing the set of rules that differ in rates, vacations, exemptions and tax rights. Establish an action plan and system for maintaining account tax and sales tax.

10.  Reducing internal risk

There must be a complete system in your bookkeeping and accounting department to minimize the risk of internal fraud.

Divide up duties, checks and balances are required and establish dual controls to limit one's access to accounts and information.

11.  Bank account reconciliation

It is imperative to restructure bank accounts in a timely fashion. This assures you that any errors and signs of potential fraud have just been detected to correct the errors in the accounting over time.

12.  Data back-up

Back up your data. Cloud provides some protection, but you need to plan for possible restraint. Documents should also be scanned for digital backup in case of an emergency in the office.

13.  Back-office automation

Technology solutions have been developed to overcome almost every challenge in the modern bookkeeping and accounting department. Make sure you do research before choosing one product over another. Look for scalable features and ongoing support, but don't be afraid to use modern bookkeeping and accounting tools.

ORGANIZE, AUTOMATE, AND INTEGRATE YOUR SMART BACK OFFICE WITH TECHNOLOGY.

The responsibilities, requirements, and procedures required to maintain a small or medium-sized business bookkeeping and accounting department can quickly become overwhelming, especially as the business grows.

 Using technology to optimize, automate, streamline, and integrate as many steps as possible into your company's bookkeeping and accounting process will reduce the burden on your previous office and improve your financial data. With Cleaner, up-to-date financial information, you can keep track of your company's key performance indicators to perfect your business plan and operations.

 By helping you make smart business decisions, your bookkeeping and accounting departments can help you strategically reduce costs, optimize pricing and processing, make your marketing dollars, increase profits, and grow your business.

THE ALLIANCE TAX EXPERTS PAIR TRIED AND TRIED AND DID THE REAL PROCESS WITH TRUE TECHNOLOGY

In partnership with Alliance Tax Experts, your company will have access to a team of highly experienced, trained and certified bookkeeping and accounting professionals.

We'll help you create and install smart and efficient bookkeeping and accounting processes that work for your business, saving you time and money by providing the financial data you need to make strategic decisions on behalf of your company.

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