3 tips to streamline your accounting processes

Whether you're running a for-profit business or a non-profit, solid accounting is the backbone of your financial health. It’s what empowers you to make smart, informed decisions. But even the most efficient systems can become outdated over time.

Are your accounting practices keeping up, or are they holding you back? If you feel like your team is stuck in a cycle of manual entries and endless reconciliations, it’s time for a change.

Here are three straightforward ways to enhance your accounting function and keep your operations running like a well-oiled machine.

1. Review and Reconcile Consistently

Strong internal controls start with management oversight. Think of it as your first line of defense against financial discrepancies.

• Regular Reviews are Non-Negotiable: Ensure your CFO, controller, or bookkeeper regularly reviews monthly bank statements and financial reports. A quick check for errors or unusual activity can stop small issues from snowballing into major problems.
• Establish Clear Cutoffs: Set a firm policy for month-end cutoffs. Require all vendor invoices and expense reports to be submitted within a specific timeframe, like one week after the month ends. This simple rule prevents last-minute scrambles and keeps your financial reporting on schedule.
• Reconcile Monthly, Not Annually: Don't wait until year-end to reconcile balance sheet accounts. Doing it monthly saves a massive amount of time and stress. It’s far easier to fix mistakes when you catch them early. Make sure to reconcile your accounts payable and receivable ledgers with your balance sheet to maintain accuracy.

2. Standardize Your Workflows

Standardization isn't about rigid rules; it's about creating smarter, faster processes that eliminate guesswork.

• Create a Standard Approval Process: A standardized invoice coding sheet or a digital approval workflow can dramatically improve accuracy and speed. Your accounting team needs key details like general ledger codes, cost centers, and approval signatures to process payments efficiently. A simple cover sheet or electronic workflow captures everything in one place. Include a section for a manager’s approval and checkboxes for allocating expenses to different departments or projects.
• Document Everything: Always document payment details for easy reference and to make audits a breeze.
• Batch Your Work: Instead of processing every invoice as it arrives, set aside dedicated time blocks to handle multiple items at once. This "batching" technique saves time and cuts down on the inefficiency of constantly switching tasks.

3. Get the Most Out of Your Accounting Software

Many organizations are sitting on a goldmine of features within their accounting software but don't even know it.

• Unlock Hidden Potential: Consider bringing in a consultant to train your team on your software’s full capabilities. Unlocking automation features, shortcuts, and reporting tools can save hours and reduce manual errors.
• Standardize Your Reports: Customize the financial reports generated by your system to fit your needs without requiring manual tweaks. This not only improves data consistency but also gives you real-time insights, not just a backward glance at the end of the month.
• Automate Recurring Entries: Most accounting systems let you automate regular journal entries for things like payroll allocations, rent, and other recurring expenses. Just remember to periodically review these estimates against actual figures and make adjustments before closing the books.

Small Improvements Lead to Big Wins

The world of accounting is constantly evolving with automation, cloud-based systems, and AI-driven analytics. Regularly reviewing your workflows is no longer optional—it's essential for staying competitive.

Not sure where to begin? That's what we're here for. We can help you review your current systems, brainstorm practical ideas to modernize your accounting function, and partner with you to enhance efficiency and improve your financial oversight.

Ready to move your business forward? Let's talk.