Introducing Bookkeeping Automations That Save Time and Money
The world has come a long way since the invention of double-entry bookkeeping over 500 years ago. We’ve gone from paper and pencil to bits and bytes—nowadays computers can automate much of the bookkeeping that used to be done by hand (and still is in many small businesses).
With the deadline for Partnership and S-Corporation returns coming up on March 15th, our team has identified TK steps to get your books organized so you can focus on what you do best: running your business.
Step 1: Sync Your Bank Feed
Rather than manually entering transactions into your accounting software, you can sync your company’s bank account. That way an entry is automatically created in your accounting system whenever money goes in or out of your account.
Step 2: Create Rules
Many of the transactions that occur within your business each month are recurring—they happen at the same time each month or they’re with the same vendors.
You can create rules in your accounting software to automatically categorize transactions based on parameters you set. For example, if you know that any purchase from Staples is for office supplies, you can create that rule and never have to manually enter those transactions into your accounting software again!
Step 3: Sync Payroll
If you have employees, accounting for payroll correctly can be one of the most difficult parts of keeping your books up to date and accurate. Each payroll could involve categorizing transactions across over a dozen accounts in your accounting software! If you have remote employees working out of state, things can quickly get even more complicated.
Some payroll providers offer the opportunity to sync their data with your accounting software, so each payroll is automatically accounted for correctly and instantaneously.
Step 4: Review
Not matter how much you automate, there will always be exceptions or new transactions that must be accounted for manually—which means there’s room for error.
We recommend having your books reviewed by a professional at least quarterly. If there’s a mistake, it’s much easier to correct it right after the fact than if it’s been going on for a year.
Hutchinson & Walter Offers Bookkeeping Services
If you’re concerned that your books need a tune-up, we’re here to help! We offer both an ongoing monthly service and an annual consultation to get your books caught up to file your taxes.