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Accounting and Tax

4 Proven Hacks to Speed Up Your Accounting Processes

02 November 2023
Grof Writer
6 Minutes Read
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Accounting is the heart of any organisation. However, due to numerous accounting processes, most organizations struggle to balance the operations within the accounting department and other business sections. 


Remember, a well-functioning accounting department must identify and record transactions such as fixed costs in a journal before analyzing the worksheet. Additionally, they must prepare the unadjusted trial balance and financial statements, which can be quite burdensome for the team. 


The most challenging aspect is dealing with multiple accounting processes that can consume a significant amount of time to complete. This implies that there won't be enough time to concentrate on other important operations that keep the venture afloat. Consequently, meeting business targets and goals like increasing revenue might become challenging. 


The good news is that we have better ways to expedite the accounting processes and maintain accurate records in this demanding sector. Here are five proven hacks to achieve this. 


1. Automate Repetitive Tasks 


One of the easiest ways to deal with the repetitive tasks that the accounting process entails is to automate the process. Usually, performing the same task repeatedly can become tiresome and monotonous, causing individuals to spend more time on them. 


However, by automating the process, the working speed doubles, which helps in meeting deadlines and goals on time. The most advantageous aspect of automating repetitive tasks is that it reduces human errors and boosts productivity. 


As a business, invest in the latest technology to help automate accounting processes such as payroll, adjustments of categories, and manual reconciliation. 

Automating your accounting processes will become simpler after following the steps below: 


Choose the Right Accounting Tools 

The first step you need to take before automating your system is to identify the repetitive accounting processes. After that, choose the appropriate software that will become a part of your fixed costs to help speed up the process. Don't be swayed by the popular belief that some accounting processes can't be automated, as it will only slow you down! 


Instead, opt for the right application to integrate with other apps and fulfil your accounting needs. Ensure that the accounting software fits within your budget and is compatible with the existing administrative systems. 


Have a Migration Plan 

Afterwards, proceed to migrate the accounting team to the digital system. This step might require the help of an IT expert. During the migration process to the accounting software, ensure the absence of errors and safeguard the data against hacking attempts. Furthermore, provide training to your accountants on how to effectively utilize the new platform. 


Test the Software 

Automating the accounting processes requires testing the effectiveness of the software. We recommend conducting this testing in advance to mitigate potential challenges that could emerge while dealing with repetitive tasks. Subsequently, monitor and report any alterations that occur while using the software. 


2. Use Cloud-Based Solutions 

Integrating technology into your accounting processes involves transitioning from traditional methods of storing and accessing financial records to digital solutions. Utilise cloud-based platforms to efficiently manage financial documents or accounting systems online anywhere, anytime. 


The standout feature of a cloud-based expense management solution like Grof is its ability to enable multiple users to access the system. This fosters collaboration, enhancing the accuracy of your accounting processes while also saving time. 


Moreover, it offers secure remote server storage that safeguards your data privacy. Remember, cloud-based accounting stores your financial reports off the local computer, and encrypted data remains inaccessible without a password. Additionally, anyone accessing the data requires proper access rights. 


Employing cloud-based solutions like Grof spares your business the need to install and maintain software on individual desktops, conserving resources. Furthermore, there's no need for a large IT team to manage or update the cloud accounting system, thereby reducing operational costs.


3. Streamline Your Workflow 

Simplifying your work processes is one way to speed up your accounting tasks. Start by understanding the key numbers you need to make important decisions in your business. These important numbers include profit, fixed costs, and cash flow. 


Next, look at how you're currently doing your accounting. This can help you find any problems or opportunities to improve in your accounting department. Make sure you know exactly what information you need to keep your records accurate and make good decisions. It's important to record all your business transactions, like costs that change, really well. 


Here are some questions to help you track your transactions better: 


  1. Do I need to track various departments to assess profits? 
  2. Should I monitor direct or indirect production costs? 
  3. What are our outstanding liabilities, and who owe us? 


Put your costs into categories to understand your cash flow and see if your business can pay its bills. You can make use of user-friendly tools, including mobile apps, that keep things organised and secure. 


Opt for a business account to automate tasks and keep everything in one place. With just one powerful application, you'll save time, do less juggling between apps, and enjoy the simplicity of sharing information effortlessly. 

 

4. Outsource To The Experts 

Outsourcing non-essential tasks is a good way to reduce your workload and meet deadlines on time. It also helps your business decrease fixed costs like salaries or overheads, which is a money-saving strategy. Especially for low head-count businesses. 


Most businesses outsource non-essential accounting tasks such as preparing financial statements, filing taxes, and bookkeeping. Others also outsource accounts payable and accounts receivable functions to save money and time. 


We advise that, before outsourcing non-essential tasks, you ensure the following: 


  1. Choose the right company to outsource to. The service provider should have good internal control measures and comply with security protocols. Additionally, consider the infrastructure and software used by the service provider. The provider's reputation is also important. 
  2. Understand your business needs, which will affect the type of data you share. Additionally, comprehend the privacy or security measures your business will require for the outsourced data. 
  3. Set a budget to avoid overspending. Your budget will depend on the type of services you outsource to as well as their value to your organisation. 


Remember to outsource the non-essential tasks and leave the critical ones for your team to manage, to reduce your variable costs. 


How Grof can help you 

The accounting department within most organisations undoubtedly face their fair share of challenges. Intricate accounting processes can be undeniably time-consuming and monotonous. However, rest assured, there exists an effective solution. 


Why stress over the nitty-gritty of accounting when a helping hand is right here? We are always ready to take on the tedious parts of accounting and finance for you. With Grof by your side, you can focus solely on steering your business towards success. 


Ready to simplify your finances? Open a business account with us for easy expense management and take charge of your business's present and future. Our expert team is here to help with bookkeeping and tax filing, so you're in safe hands. Let's make your business journey smoother together! 

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Explore crucial dos and don'ts, along with essential tips for a successful company registration when establishing your foothold in Singapore!
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