4 Useful Tips for Automated Bookkeeping
Whether you love it or you don’t, bookkeeping is an essential task for your business that saves you from unnecessary hassle in the long run with taxes and helps you understand the health of your business. However, if you feel that too much of your time is being spent on bookkeeping, there is a good solution i.e. automation.
1. Keep it Simple
You can make your life and task unnecessarily tiresome by trying to achieve perfection by including every detail in your books. Instead you can keep things simple if your business doesn’t require those details.
For example, you, like many other businesses, may accept payments with the help of a 3rd party service and may be used to divide the fees and earnings from these payments in your books. However, the advice of professional Singapore bookkeeping services is to just report the income net of fees. Thus, in place of two lines for each sale, you’ll have only one – it’s simplified.
2. Set Automation Rules
When you pay a fixed amount every month to a party, do you have to review the transaction every time? If you do, you can set a rule that any time a transaction happens for exactly that amount from that party, your bookkeeping software should identify that it is for that very purpose, and the transaction should be added to your general ledger. If there is a transaction that doesn’t match the rule should be still reviewed manually by you. You can do this for all the transactions that are fixed, and thus save your valuable time.
3. Schedule Recurring and Memorized Transactions
You can automate your recurring transactions hitting your bank account or credit card directly. However, sometimes you have a recurring payment, revenue or expense that doesn’t go straight to the bank. In such situations, recurring transactions can help you.
There is a feature named “repeating/recurring transactions” in Xero or “memorized transactions” in Quickbooks with which you can set a charge to include in the books on a frequent basis. Whether you’ve a weekly, monthly or other schedule, everything can be set up to just show up. You don’t need to memorize it or note it down somewhere.
4. Improved Bookkeeping Habits Helps Your Business Thrive
Automation can keep your books always updated and updated books give you the best, freshest information that help you make the best decisions in business.
So, have you started automatizing your books?