People who are passionate about accounting are far and few. This is a task which most people, since usually most accounting is something which most people pay attention to only when it is too late. To avoid such issues, regular maintenance is something essential. Performing small accounting tasks will help you in a greater way to stay safe from lengthy hassles and long-ignored financials since they won’t occur in the first place. And if you are a startup owner or planning to set up your own business, then, likely, you haven’t got over some bad habits till now. Here are some good habits which you can adapt to make accounting simple-
Start a digital paper trail
Each time you decide to buy a business, from meals and entertainment to office fixtures, take a picture of receipt either via your tap with a tablet or smartphone. You can consult some companies which offer business accounting software about any cloud accounting software which comes with in-built features. Then during the weekend, reconcile your business transactions. You will get some guidance from experts which you will be able to rely on.
Once you have documented your week’s expenses, you need to devote 10 minutes of your free time to reconcile your business transactions. These days, that can be done through automatic bank import for whichever type of accounting software you might be using. The long-term value of any short-term ensures hassle-free reconciliation of transactions instead of too many of them at a later stage. This will ensure that transactions don’t get piled up.
Crosscheck your work
Verify the aging accounts receivable and payables in such a way that you get a clear idea of your cash flow. It is important to stay updated on what money ought to become and out what money needs to go out. Spend at least 10 minutes at the start of the week since people tend to think in advance at the start of the week, ensuring that you get a clear perception of what is coming in and coming out.
There can be a no bigger challenge than having to clear a large pile of accounting tasks, which cover months. Therefore, tackle small tasks each week. You will find that handling your company’s finances will be considerably easier for you.
Stay Updated with The Pomodoro Technique
How many times have you met a looming deadline with a disturbed mind? You are not the only person who may have faced such a situation. Some experienced professionals who offer online bookkeeping services are often faced with such a situation. Some of these are discussed below for your reference-
The Pomodoro Technique-Popularly called the ‘’time management philosophy’’, the Pomodoro Technique aims to offer you with a high level of focus and creativity, enabling you to complete projects faster with a high level of concentration. The process is quite simple. You can split your day of work into 30-minute bursts and a 10-minute break in between. After you have cleared four ‘Pomodoro’s’, you can go for a 20-minute break. Follow this routine throughout the day.
The Power Hour-This is a type of catch-up technique is best suited for all those tasks which you have been delaying. It enables you to train your brain to work efficiently for short periods, which can help you to meet HMRC deadlines. Find one hour of the day when you won’t feel distracted and concentrate all your energy on one specific task during that hour. Make this a habit of your day to day habit, and soon you will find that you have made amazing progress in those areas where you were procrastinating earlier.