Many new small business owners find themselves wearing several hats, including bookkeeping. It may not be the most exciting aspect of the business, but it’s something that needs to be done. It can be challenging and stressful, especially with so many numbers and deadlines.
Fortunately, there are also ways to make it fun. Good bookkeeping software can streamline the process and make it more interesting and more efficient.
Here are three ways to make bookkeeping more fun:
1) Understand What Bookkeeping Is
As most know, running a successful business is about having positive cash flow. If the “books” are a mess, there’s no way to see cash flow, or the financial position of the business.
Once a bookkeeper understands this, they can begin to focus on it, and even see patterns to make an educated prediction if the business is in a positive or negative position. When they can’t see or understand the business’ cash flow, it’s like managing a business account in the dark.
Online accounting software vendor Xero offers a small business guide on bookkeeping that states:
“The key to staying on top of cash flow is to reconcile as often as possible — ideally every day. A bank reconciliation is when you organize all the payments that have gone through your bank account. You should know exactly what money has or hasn’t been paid or received. When you know what’s coming, you can take action before things get messy.”
One of the top things that can make bookkeeping boring for some is the software that’s being used. There’s little that’s fun about Microsoft Excel.
For starters, Excel isn’t very automatic. It’s also not very attractive looking. And it’s limited when it comes to bookkeeping functionality.
Many small business owners start out on Excel and reach a tipping point. It’s not a long-term solution for doing large tasks and can easily screw up your business’ finances because, surprise, surprise, spreadsheets are easily filled with mistakes.
Having dedicated accounting software is significantly better for business.
It allows your business to have unlimited users tap into your business’ financials, can be accessed from anywhere with an Internet connection — if it’s connected in the cloud — and it’s super protective of data. It’s very rare that accounting software will ever lose important financial updates, because software understands what businesses go through each day and are programed to auto-save.
Accounting software also looks significantly better, making the inputting of numbers and information more fun and enjoyable.
3. Encourage and Stay Positive
This is obvious. As the leader of a small business, if you have a bookkeeper, you need to keep that person enthused about their job and motivated. Give them tasks above balancing the books that are important to the company’s success.
For instance, daily financial reports drawn up in a transparent, but easy-to-consume manner, are great resources for all members of the business. It’s important to keep all relevant parties informed on how the business is doing and a bookkeeper can provide that kind of information.
Keep your bookkeepers educated and up-to-date on what’s going on in that sector of the industry and potentially send them to trade shows to learn more.
Bookkeeping isn’t an easy task, but it can be fun. That, however, rests in the hands of you, the business owner.