In order to effectively run a business, proper accounting and bookkeeping procedures must be in place. While the advancements in modern technology pave the way for several accounting software solutions, it is still often necessary to consult with the experts to ensure seamless transactions. Nevertheless, here are some small business bookkeeping issues, together with their effective solutions.
Disorganized monthly closing processes
If the monthly closing processes of your business are chaotically done, there is a great chance that this may lead to problems down the road. Apart from unreconciled accounts and missed expenses, you might even be failing to account for the proper taxes. These errors could snowball into bigger issues that may prove to be difficult to mitigate later on.
In this case, it is best to outsource the services of the professionals in the field. Hakim & Co. in particular, have both the online resources, as well as the professional manpower to help ensure that businesses are ready for the tax season. Professional CPAs know what is necessary in every monthly closing process in order to ensure that even the most complicated tax returns are comprehensible.
Inaccurate monthly financial statements
Your monthly financial statements may also not be completed in a timely manner if you have a disorganized monthly closing process. This may be a result of your bookkeeper failing to update the books of your business in a timely manner. This may eventually lead to poor business decisions because the current data is not available.
The best solution for this case is to implement automation in your accounting and bookkeeping processes. There are now several software solutions that will allow you to update your records in a daily, weekly, or monthly manner with just a few clicks. Leverage on the digital world to ensure that your monthly financial statements are always up to date to avoid further problems down the road.
Inability to secure bank funding
If you have attempted to apply for a business loan from a bank and failed one too many times, then take this as a sign that your business has possible bookkeeping issues. It may be that your bookkeepers passed too many applications to several financial institutions without properly filling out application forms or adhering to the application procedures. It can also be that your bookkeepers are unable to present supporting business documents as needed.
In this scenario, the best solution is to implement certain technological innovations in your processes. You may acquire a software that will automatically fill in details on application forms, as well as a database for all your documents. This will ensure that your applications to secure a bank funding are properly delivered.
The accounting and bookkeeping processes of any enterprise are best handled by those proven to be experts in the field. While there may already be advanced solutions that offer accounting automations, it is still imperative that certified accountants verify the books. This is to ensure that business processes in terms or accounting, taxes, and bookkeeping are all well taken care of.