By Amanda Karen | CrunchSum
As another year ends and a new one begins, this is a perfect time to evaluate your business bookkeeping needs and current bookkeeping processes. Below, some important bookkeeping related items are discussed that you, as a business owner, should consider.
1. Have Your Bookkeeper Review Your QuickBooks Financial Data
Having a bookkeeper review your financial data for completeness, accuracy, and overall organization will help to ensure that your financial documents are at an adequate tax preparation status for your CPA. CPA’s charge much more per hour than most bookkeepers. You do not want to put your CPA in a position where they have to do bookkeeping work before they can even begin their already scheduled work.
2. Review Your Financial Statements
Did your business financially operate as expected for the year? Are there areas where expenses can or should be reduced? Are you charging the most optimal prices for your products and/or services? Do you need to increase your prices to more accurately reflect market rates and remain competitive?
Looking at the past is a good way to help predict the future. Your current financial statements can help you produce a forecast and budget for the upcoming tax year and help you set reasonable expectations for what your financial position will be at the end of this year.
3. Do You Have a Proper Bookkeeping Process in Place?
The end of the year is an optimal time to evaluate your current bookkeeping process and identify areas where inefficiencies lie and where process improvements can be made. This can include the type of accounting software that you are using and how your bookkeeping is completed.
Is your current accounting software meeting your business bookkeeping needs? Do you need to consider an alternative system? Are you getting the most out of your current accounting software? Should you consider moving to an online-based accounting system?
If you are currently completing your own bookkeeping, should you be? Is it a better business strategy to work with an external professional bookkeeper on a monthly, quarterly, or at least semi-annual basis? Are you spending too much time on your bookkeeping each month? Would you like to focus more of your attention on those areas of your business that you are more interested in and passionate about?
4. The Technical Stuff
If you use QuickBooks, this is a good time to evaluate your company file and clean up your data. Consider the following questions:
- Are there accounts that you no longer use?
- Do you have duplicate accounts that should be merged?
- Are there vendors, customers, or employees that are no longer active or shouldn’t be included in QuickBooks at all?
- Do you need to condense your QuickBooks data file?
- Do you need to upgrade to the most current version of QuickBooks or switch to a QuickBooks product that better fits your business bookkeeping needs?
- Are you ready to move your business bookkeeping to the cloud? Do you need to convert your QuickBooks desktop data to QuickBooks Online?
Take some time to consider your current bookkeeping system and process and evaluate the four areas of your bookkeeping as discussed above. There is always room for improvement. Eliminating inefficiencies will result in cost savings.
What areas do you need to change about your business bookkeeping? Tell us below!
CrunchSum provides web-based bookkeeping and QuickBooks support services to web and technology companies.