Bookkeeping is a necessary evil and there is nothing sexy about it… (well maybe sometimes).
It is a job better left for those of us who do find it sexy. While you do have to pay for the service, it shouldn’t be a budget buster.
Here are a couple of tips to keep the costs down. (at least this is how it works at my firm)
1. Remote vs. Onsite work – Onsite work is more expensive. There is travel time, making appointments, rescheduling appointments, waiting for the next visit to have a discussion or resolve a problem, having workspace and sharing your computer, plus the higher hourly fee that goes with an onsite visit. Remote working is flat rate based on the number of transactions that are processed. Communicating via text and e-mails your questions and problem can be responded to within 24 hours. No need to make appointments so you are free to do your thing. No need for the extra computer or space.
2. Have all your information – clarity of information is key. Have all of your bank and credit card statements (not just some months you found in the pile). Mark your receipts with any project numbers or special treatment. If you still are writing checks, have a check register which included check number, date, payee (who you paid) and what it was for. Nothing is a mood killer like looking at a bank statement with just check numbers and amounts and then having to source the information. All of these steps keep things moving quickly.
3. Use Technology, cloud computing is your friend here, use online project management software, accounting software, CRM systems. It makes communication and transfer of information much smoother.
Leave a comment, let us know what you think.
I am an accountant and am pretty good with receipts, but even I hate filling out expense reports. Along comes Expensify onto my iPhone and I was able to hand in my expense report right after my plane landed (well, ok the next day).
I was on a recent business trip and my usual thing would be to save the receipts in an envelope and after few weeks after I got back, fill out an expense report spreadsheet. Of course when I did finally get to it I would have to remember the details of the trip to get the expenses in the correct categories, (i’m sure you can relate).
I downloaded Expensify and Genius Scan (makes your iPhone a scanner) and I was off. At the end of each day of my trip:
- I would scan my receipts (using Genius Scan), it connects to Expensify and transfers the image into the application
- I would add the charges into the Expensify iPhone app and put them in the correct categories.
- I would attached the scanned receipt to the charge.
When I got back to the office I logged on to the Expensify website and there it was, a spreadsheet with the expenses and the receipts attached that I could print or email to whoever needed/wanted it.
What was the longest time it took you to fill out an expense report? Leave a comment.
Sign up to the blog for our drawing. The winner gets an Expensify setup/tutorial session.
Drawing to be held at the end of this month.
Cash flow management is a test of how well a company operates.
Cash flow is the difference between cash coming into the business and cash going out of the business during a given period.
Here are ten ways to manage cash flow:
- Decrease the amount of money owed to you– get customers to pay their bills
- Cut out excess overhead expenditures
- Keep a close eye on inventory
- Don’t overpay taxes
- Review owner’s compensation – secondary income may be valuable to the success of many small business ventures in the early years
- Consciously structure the payment of bills – pay bills closer to the deadline but do not incur late fees
- Consider biweekly or monthly paychecks
- Update company procedures to make process more efficient and cost-effective
- Plan ahead – using cash saving activities such as renting instead of buying or purchasing used equipment versus new equipment, finding cash paying customers and quick paying customers versus giving credit and late payers.
- Develop a good record keeping system
Did you find this helpful? Leave a comment and let us know. We love to hear feedback.