Accounting is one of the most important functions in the business world, and it’s one that no business can do without. Given the importance of business accounting as a whole, it should be apparent that using best practices will increase the value of accounting to your company even more, and will help to identify exactly how your business is doing.
Here are some best practices for business accounting that all companies should be following.
Process in batches
Check requests, invoices, and reimbursement checks should always be processed in batches rather than singly, and these batches should always be processed at the same time each month. It may be necessary to run a set of batches several times a month in order to keep up with transactions, and to avoid emergency runs which consume a great deal of time.
Use accounting software
Regardless of whether or not you like the software your company uses for business accounting, you should always be using that software, rather than doing your number-crunching manually. Manual operations completely defeat the purpose of having software there in the first place, and manual operations are always more subject to error than using the software would be.
Establish firm deadlines
When your fellow employees don’t submit requests and invoices during a specified period, it becomes practically impossible for the accounting team to meet their deadlines. If your current deadlines are not working very well, they may need to be adapted to current company practices. Once you have the best deadlines set up, make these deadlines firm and let the entire company know that they should be adhered to.
Don’t waste time on processes which should be automated
While there are definitely many accounting tasks which require a human touch, there are also a great many which computers can do quite adequately. Review your current accounting processes, and find out which of them might be better handled by software, so that your time can be freed up to focus on the tasks which require human intervention.
Has accounting turned up a shortage in cash flow for your company?
If your business accounting department is telling you that your company has a cash flow issue, we may be able to help relieve the problem.
Contact us at Safe Harbor Commercial Capital, so we can discuss some options for providing you with the financing you need to keep your business running smoothly.