The 10 Question Bookkeeping Review: is it time for change?

How to Conduct an Internal Bookkeeping Review

There is a very famous saying “if it ain’t broke, don’t fix it”. True in some cases but absolutely not true when it comes to bookkeeping and the way you run your business.

Sometimes we get so caught up in our business we never get a chance to float above it (metaphorically speaking!) and look at the cogs of the process engine to identify things slowing it down.

Sure, something might not be broken but there may be a few cogs or processes that are cumbersome and groaning under the weight of the growth of your business, any strategy changes you are making or changes in customer expectations and behaviour.

It’s always good to have regular reviews of the different components of the business – online marketing, logistics, business development, sales approaches, safety, repair and maintenance and of course, bookkeeping.

We find with the clients that come to us after they’ve done a review they’ve realised that their traditional desktop approach to bookkeeping has worked but as other parts of the business ramped it up with technology and online communication, desktop bookkeeping got left behind.

It became a cog in the business wheel that slowed the entire engine down.

They identified the issue, researched alternatives such as cloud accounting, made the switch with us at Cornerstone and have never looked back.

SO! How should you review your bookkeeping approach? Here are 5 simple questions you can ask about the current capability of bookkeeping process?

1.      Have you streamlined your finances and internal processes within the last 12 months?

2.      Are you taking less time to complete your payroll every week, fortnight or month?

3.      Are payroll changes to tax and superannuation laws set to automatically update within your accounting software? (hyperlink this to landing page for Payroll book)

4.      Can staff prepare quotes and sales invoices remotely and on the go wherever they may be?

5.      Can you be sitting at the airport with the capability to download the company’s latest profit and loss statement reflected in real time?

Hmmmmm….if you’ve answered NO to at least one of those questions, it may be time for a re-think of your bookkeeping approach.

But we don’t want to be presumptuous! Let’s ask a few more questions and see how you go.

1.      Are you collecting every receipt manually and placing them in a bag or envelope to give to your bookkeeper every month?

2.      Do you reconcile your bank statement manually every month?

3.      Is there delays in distributing employee pay slips?

4.      Are you manually submitting your employee superannuation contributions?

5.      Are you transferring desktop accounting files to your accountant?

 

Okay. If you answered YES to one or more of those questions, it’s time to look at cloud accounting as a bookkeeping alternative and a smart business strategy.

Here’s the thing. Cloud accounting saves time and it saves money. We have seen it firsthand in our own business and also with our clients. Time and money are like the holy grail of small businesses. We all want more of it!

The old style of bookkeeping is costing you money. Money and time that could be invested in other areas such as business development, research and customer connection that could really kick-start your business to a whole other level. We’re talking thousands of dollars a year.

Knowing which systems to introduce to your business and how to implement them is as easy as picking up the phone and speaking with Cornerstone. If you’re anxious about the technology, don’t be. We are experienced with cloud accounting. In fact, it’s the only form of bookkeeping we use with our clients. We can help you identify the best way forward to make financial management easy for you.

It’s time to put your hand on the phone and your head in the cloud.

If you have any questions regarding your current situation please feel free to call us here.  We can show you in 30mins or less how to streamline your business. (Hyperlinked to contact page)