Why is it important to update accounting systems?

As a business leader, you know every business needs an accounting system to track revenue and expenses, plan for taxes and assess how the business performs over time. Much like your own industry, the accounting world is constantly innovating and adapting to changing conditions, so it’s important to match those changes with new accounting strategies and systems.

Making regular adjustments to your company’s accounting system can have many benefits including:

• Improved workflow
• Reduction in excess or unnecessary costs
• Planning and preparation for taxes
• Improved tracking of business performance.

 What updates should businesses consider in 2024?

The following accounting strategies could help your business improve efficiency and increase profits in 2024:

1. Ditch the paper

Paper is an enormous expense for many businesses. Keeping records on paper requires more than just the cost of the paper itself. It also includes the cost of toner, printing equipment, maintenance, repairs and storage space.

Going as paperless as possible can be an effective way to save money, time and space. A paperless accounting system eliminates a substantial part of the need to print, collate and file documents. It might not be possible to go 100% paperless, but explore where paper is not absolutely necessary in your business.

2. Upgrade your accounting software

Just like accounting standards, accounting software is constantly evolving. New products provide new functions and services. Updates to existing products can expand their capabilities. Your business might be missing out on exciting new possibilities.

To assess how well your current accounting software is serving you, compare the features that it offers to the types of accounting and reporting that you must do. Consider factors like remote work and the need to share information across multiple locations.

3. Reconcile daily or weekly, not monthly

Many business metrics operate on a monthly or quarterly basis. This is as much a result of long-term practice as business needs, if not more so. Banks send out statements on a monthly basis, so people tend to think of account reconciliation as a monthly task. It does not have to be.

Speeding up your reconciliation process can provide detailed, real-time data about business performance. It also relieves the pressure on your staff to meet end-of-month or end-of-quarter deadlines.

4. Consider automation

More and more technological solutions are available that allow businesses to automate various tasks. New automation technology is available, for example, to streamline the accounts payable process. An employee scans invoices, which post to the automated system based on an invoice or purchase order number. Once an employee has matched the invoice to the company’s records, the system handles the rest of the process.

There are likely several opportunities for automation in your business. Talk to your staff to take a look at the steps involved in their day-to-day tasks. Any process that involves a repetitive or time-consuming process may be good candidate for automation.

Corrigan Krause Can Help Business Leaders

Keeping up with changing standards and technologies can be time consuming, but the experts at Corrigan Krause are ready to help keep your business up to date and streamlined. Click here to learn more about becoming a client.