Whether you are doing forecasting, you want to apply for a business loan or you simply want to know exactly where your business stands, accurate accounting is the backbone of your business. Setting up your accounting system, entering expenses and receivables and reconciling accounts all take time. Keep your system as simple and carefree as possible by following these three tips.

1. Hire a Bookkeeper

Unless you have some training in accounting there is no accounting software package out there that is truly plug-and-play. Don’t waste your time by acting as your own bookkeeper. Even if you don’t have the budget to hire someone full time there are plenty of freelancers willing to work part-time. Also, consider using an outsourcing service that will find the right candidate for you. You don’t have to worry about any of the HR processes, just pay a monthly fee to the service. 

2. Track Your Daily Expenses Daily

You’ve already established forecasting for your business and created a budget. If you only track your daily expenses every two weeks you can be far over budget and not realize it until it is too late. Either you or your bookkeeper should be entering your daily expenses at the end of the day. Look at them the following morning to see if you’re on track for your budget and areas where you can cut costs. 

This daily entry and review will help you cultivate the habit of financial awareness. You prevent yourself from nickel-and-diming your business accounts and become more mindful of how you are spending the business’s money. 

3. Stay on Top of Accounts Receivable

If you’re running your business on an accrual basis your books can look good while your cash flow is actually poor. Almost three-quarters of businesses admit to delaying payment to keep their own cash flow looking good. Don’t let your business suffer for a customer’s gain. Customers that don’t pay you aren’t customers you want to keep. Don’t be afraid to demand payment.

Have clear policies in place that no new orders will be filled until existing invoices aged over the net payment terms are paid. Regularly run an AR aging report and track down those customers who are overdue. If you don’t have time, this is another job that can easily be outsourced.

With the help of a bookkeeper, you can focus on developing financial awareness. As a team you can make sure that your business is getting paid for the products and services you provide.