The past years have introduced automation to small businesses. Although there are still a few companies embracing traditional processes, 2016 has been a year of bookkeeping automation. Aside from saving time, you can also reduce stress with automation. You reduce manual processes and keep human errors to a minimum. If you used to spend hundreds of grueling hours for doing tasks such as tax preparation and expense reports generation, these tasks will no longer be such a pain. Babysitting your books to ensure that the information is accurate will be history. However, you need to take note of the essential tasks that should be part of the automation bandwagon.
Small business owners consider payroll taxes as administrative burden. This is because the staff has to spend 10 hours per month managing payroll. That is 120 hours or even more a year. When your system has the ability to calculate payroll taxes, you create paychecks instantly and avoid tax penalties. You can even set Payroll up so you can integrate it with your bookkeeping software.
Taking inventory consumes a large chunk of your time. All of the wasted time can be corrected by automating inventory management. Automating this task can help you generate invoices, pack list, minimise inventory errors, speed up the order process and create sales reports.
Submitting reports on time is essential to every small business owner because missing out on generating expense report can result in creating tax and bookkeeping problems. Automation streamlines the process of expense reporting as employees are given the ability to use mobile devices so receipts are recorded in just a snap. Automation is a time-saver because you can generate reports automatically and even integrate them with your travel booking so you can ensure that your travel expenses comply with your company policy.
If you rely on making a mental note when keeping track of customers who has and has not paid you, oversights can happen. It will result in cash flow problems, which will eventually pose a threat to the company’s financial stability. Keep in mind that cash flow is the lifeblood of your business. If you keep on losing track of your invoices, your company will run the risk of bankruptcy. An automated bookkeeping system enables you to sustain sufficient cash flow. You will also have a detailed record of your invoices so you will know the customers who have already made a payment.
Peter Broberg is a bookkeeping professional with over 20 years experience in the finance sector. With more than 2 decades of experience, Peter provides payroll and bookkeeping services on a professional level. His services cater to small and medium enterprises in Cannington, Kalamunda.