Every successful entrepreneur will tell you that a very significant part of their success depends on the ability to manage their books effectively. But, the primary challenge for an entrepreneur lies in learning how to manage their books and bookkeeping records with minimal effort.
Bookkeeping can be a very tedious and time-consuming task for an entrepreneur. This is because bookkeeping is not just about being organized but, more importantly, about being effective.
We explore in this article the six best ways for entrepreneurs to manage their books and bookkeeping records effectively.
1. Get The Perfect Accounting Software
There is no one “perfect” accounting package or software. A full-function accounting software, which meets your current needs and will expand to meet your future ones, though, is a hidden asset. It allows you to easily handle the accounts help you manage your business proactively.
With the variety of accounting software in the market, however, there are certain questions you need to ask before choosing the one best suited for your business:
● Is it compatible with your other systems?
● Can the software import and edit existing documents?
● What features does it have?
● What is your budget & plan, and what is the price & availability of the software?
Once you have the answers to the above, your choice of accounting software becomes easier.
2. Equip Your System With Additional Software
The next thing that an entrepreneur should do for managing their books properly is to use the right business management software package. Although this may seem like a daunting task and heavy on the pocket it is quite easy and many packages are affordable. A complete business management package will take up all the manual work of your accounting, financial transactions tracking, and back-office tasks. This software package when integrated with the accounting software will bring significant automation to the system. It will allow you to focus on the core business activities instead of worrying about the books and accounts.
3. Integrate Bank Feeds
Bank feeds directly import transactions from your bank or financial institution into your software spreadsheet. This process eliminates the need to import transactions manually. Bank feeds bring the advantage of easy and straightforward automatic data entry, avoiding any manual errors in the process. With integrated bank feeds, you will be able to manage your books and your bookkeeping very effectively in a very short period.
4. Set up invoice schedule
The demands on a solopreneur or an entrepreneur’s time might lead to loopholes in billing their customers. This will affect their cash flow due to delays in receiving client payments and there will be a knock-on effect on the business. Setting up an automatic invoice generating software to raise and send clients’ invoices in line with their billing cycle will prevent this to a large extent. You can also use the software to follow a standard monthly billing cycle for clients.
5. Follow Bookkeeping Rules
Many entrepreneurs may not know how to set up their companies’ accounting systems properly. Ensuring that bookkeeping rules are followed will minimise chaos in managing the books. These rules allow one to track essentials and make it much easier for the entrepreneur to evaluate business progress using up-to-date books.
6. Diarize bookkeeping
Another strategy for managing the books is to create a weekly bookkeeping calendar. This diary should not only list the clients and updates, but also important financial and compliance dates. You might even need to diarize the availability of your bookkeeper! There are several business bookkeeping software packages available that can make the process of managing your books a breeze.
If you are looking for the best Bookkeeping Software for your business, Corient can help you! Corient enables you to keep your accounts up to to date helping you manage and grow your business