Have your bookkeeping processes changed over the last few years? Most organizations agree that new tools and processes have changed how we track and manage finances, and most would agree that things have advanced for the better. It’s easier to invoice clients, accept payments, convert different currencies, pay bills, and have everything tracked instantly, not to mention to the exact penny.
In order to manage your finances as a company should in 2023, we’ve put together this article on the best practices you should take into consideration when managing your company’s bookkeeping.
Are You Using a Modern Bookkeeping/Accounting Tool?
The first step in modernizing your managing of finances is to find a useful tool that can assist you. There are tons of bookkeeping and account tools to use, including:
- Zoho Books
There are plenty of other options available as well that might be a good fit depending on what you’re looking for.
These tools will immediately take your accounting to the next level because of their ability to sync with your bank accounts, send invoices, collect payment, and more.
Put an Expert in Charge
New tools allow inexperienced people to look after their company’s finances, and it can feel easy at times. However, not everyone should be put in charge of your business’s accounting and bookkeeping. In fact, I recommend hiring someone who knows what they are doing to look over your finances and manage your bookkeeping.
An experienced and knowledgeable finance expert armed with the right tool can do a wonderful job of managing your finances and making the best decisions based on what they see from the books.
Keep Everything Simple
While I must recommend an expert and the use of the proper tools, I always mention the benefits of keeping things as simple as possible. Your company’s finances are complex enough without adding in unnecessary and unneeded systems. Keep it as simple as possible.
Does Automation Make Sense?
Most modern tools are introducing automation to their platforms in order to make things as easy and streamlined as possible. For the most part, it can be quite effective to automate elements of your business, but there are also things that require a human touch – and finances might be one of those things.
Don’t automate your bookkeeping, unless it makes sense for you.
Is It Best to Outsource Your Bookkeeping?
The ability to outsource your business’s bookkeeping is another interesting idea to consider.
Dominic James Murray is the CEO of Cameron James Finance and has 10+ years in professional finance: “Outsourcing certain aspects of your business’s needs just seems to make sense in 2023. When you start to consider the things associated with hiring another employee, it doesn’t always make sense. Bookkeeping might be an area where an outsourced agency or professional can manage things effectively based on your needs.”
Create Bookkeeping Goals and Learn From Them
Like every other aspect of your business, you should have goals for your finances. These goals should be trackable and measurable against previous months & years.
Peter Peterka, a business owner we spoke with for this article, phrased it nicely: “Tough decisions are difficult to make when you have nothing to base them off of. If you start making big decisions based on gut feelings and assumptions, there’s a good chance you’ll make bad decisions. We started making better financial decisions when we made goals to track and measure our progress off of.”
Don’t Make Quick Decisions
The most difficult part of this modern world is the challenge we face in making good money decisions when there are so many temptations in front of us at all times. This goes for our personal finances, as well as our company’s finances. We have to keep ourselves from making quick decisions without research. That’s how we get ourselves into bad decisions and selfishly damage our company’s bookkeeping.
Think things through, put a professional in place, and stick to your target goals. That’s a good start when managing your company’s bookkeeping.