5 ways to optimize accounting practices
1. Ensure accurate reporting and feedback.
Accounting errors and incorrect updates give you flawed information on your company’s financial state. This also puts your business at stake because it can be easily manipulated and used for fraud or criminal activities. If you can get your invoice and tax accurately calculated, you can be confident that your business is protected and secured.
On the other hand, getting timely and proper feedback from your accountant will be valuable to your financial decision-making. Therefore, your accountant should be responsive to your needs and can provide competent advice.
Luckily, a digital accounting solution such as Kwikdroid can give you a direct line to your accountant so you can have prompt advice regarding your financial decisions. It is also equipped with a machine learning tool that enables data extraction, accurate reporting, and language and currency customization.
2. Submit sufficient and timely monthly reports.
Monthly reports reflect how your business is doing, and help you identify issues with your accounts payables beforehand. It also adds up to transparency in your business. It makes your investors happy if they know what’s going on, and it even opens the door for additional investment.
If your accountant can provide weekly and monthly summaries promptly, it will help monitor and analyze your financial situation. Thus, it will ensure profits for your business as well as minimize any cost.
China’s tax authorities also require every company to submit monthly tax declarations based on financial statements. Thus, they must be accurate and complete. Since you can take advantage of Kwikdroid’s Cloud- and AI-based solution, for instance, you can make sure that your monthly reports will be spotless.
3. Avoid expense oversights.
An oversight occurs when your accountant is not able to present to you a complete picture of your business’s financials. When your business accounts are not properly handled, audit mistakes and unforeseen expenses can occur and threaten your overall liquidity. This can make it troublesome when paying for unnecessary costs.
To avoid these oversights, you should always have a complete overview of your company’s operations. These include your sales, profits and losses, paid and unpaid invoices, account balances, and even your employees’ time-off requests. In this way, you can have full control over your expenses and effectively monitor leaves that you ought to approve or reject.
On Kwikdroid’s instant dashboard, you can get a summary of all these aspects of your business in real-time, wherever you are. With this, you can manage and improve your cashflow. Not only that, but you can also monitor various tasks being undertaken by your employees.
Have a look at our previous article on Financial Visibility with Real-time Dashboards
4. Manage your records carefully.
Poor management of your accounting records can lead to a serious conflict with tax authorities. Especially in China, due to its unique fapiao system, businesses should be able to handle receipts or invoices carefully. Missing fapiaos, for example, can be a big problem for auditing purposes because accurate reporting and authenticity verification will be impossible.
Every business must have proper management of all financial information. If you have a management solution that caters to all your needs, it will keep you safe from unnecessary trouble. This is one huge advantage of using Kwikdroid as a digital accounting solution. Through its OCR and AI technology, it will be possible to import bank statements and expenses or create vendor bills. You can then turn these files into digital and editable contents where they can be kept in one place. If you ever need them, you can view and search for any information in no time. Kwikdroid also allows for a bank reconciliation process to take place with just a click away.
Have you read? Bank Reconciliation Process: An Essential for Businesses
Overall, accounting tasks can be overwhelming because of the huge calculations and document preparations necessary to keep a record of your expenses and track your financial state.
If you have an accountant who does not utilize accounting software or one who does not know how to properly use it, you might get incorrect entries and reports. This is problematic when getting through the annual accounting procedures for all your financial statements.
While most larger companies are already using accounting software, small business owners should also have the chance to gain an advantage from accounting software.