How long does it take you to close the books at the end of the month? How about the quarter? For many companies, the process takes days, and it doesn’t have to. Advancements in accounting software have streamlined the process of keeping the books, making it easier to track expenses in real time. When costs are tracked in this way instead of being pulled into a spreadsheet at the end of each month, it is less time-consuming to report and easier to monitor expenses.
While this type of automated system for accounting has already been widely accepted at the largest corporations, small and medium sized businesses are often still doing the books by hand. Even relatively small businesses can benefit from software, as it cuts down on time personnel spend closing the books and their time can be spent evaluating expenditures instead.
No matter how you keep your books, be sure to watch out for things like creating a miscellaneous category or putting one item under multiple categories. Spending a little time now to create clear designations for expenditures can save a lot of time later on. For more bookkeeping tips, both for accounting by hand and using software, visit the Basic Bookkeeping Tips at AllBusiness.com.