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A quick guide to Simplified Small Business Accounting

If you run a small business,simplify your accounting system and instead and concentrate on actionable metrics. This is especially true if you are the only one managing your business.

Below are some of the ways you can streamline your small business accounting system:

• Track your inventory using dedicated inventory management software.

Online inventory management software and point of sale systems allow you to see your stock levels in real-time, understand your product margins and make better decisions. Choose a system that integrates with your accounting system to save even more admin time.

• Automate your invoicing.

Cloud-based accounting systems (we recommend Xero) allow you to email invoices from your accounting system and can even connect to tools like Stripe and PayPal so your customers can pay online. If you make it easier to pay you, chances are you’ll get paid faster. The system also gives you ready access to unpaid invoices, an option for instant invoice reminders and simple connection to your bank account so you can mark off payments efficiently.

• Pay your bills when they’re due.

Late payment fees can be steep and paying upfront eliminates the need to track your bills in the accounting system. More importantly, if you pay your bills as they come in, you won’t end up with a snowball effect of accumulated bills. Your suppliers will also thank you. Paying accounts on time, improves inter-business relationships.

• Don’t use your business accounts for personal expenses.

Always be diligent about which card you swipe. Your business transactions must be accounted for, so keeping your personal and business affairs separate can save you from hassles in the long run. Plus, your accountant and bookkeeper will thank you!

• Automate your payroll.

Setting up your payroll so it’s automatic, or outsourcing to an experienced team, will save you time and money.

Is your internal accounting and bookkeeping taking up too much of your time? 

Our rapidly growing bookkeeping team can help you with a full range of services, from Xero set up through to full service bookkeeping, paying of accounts and payroll. The service has become so popular with our clients as they see the benefits of freeing up their time to fioocus on business growth and development.

We offer a range of packages to suit your business. See your bookkeeping support options here.