Tips to Keep Your Accounting Organized

Regardless if you’re managing a big or small business, you employ a professional accountant, or have an accountant on staff, keeping your accounting records and systems organized is imperative for success. It’s like trying to drive your car without gas; all businesses must keep good records of the financial side of the business in order to properly function.

In our experience, we've noticed business owners are often afraid of the accounting and bookkeeping side of their business. Fear makes us do funny things including ignoring the issue. However, when we ignore accounting, it inevitably builds up creating a system of chaos and disorganization; making it even more frightening. Use these tips to help you get and keep your accounts organized. It will make the process less painful and easier to manage. 

Over the years, the Tally Services team has developed and honed these simple, but effective tips to help business owners maintain and keep their accounts organized:

• Keep it Separate: It’s tempting to combine and mix personal and business files, especially if you own more than one entity, but keeping them separate – including separate filing systems, credit cards, and bank accounts for each – will make your accounting much smoother. You won’t be constantly trying to remember what is what and you’ll have a much clearer picture of the overall financial health of each when separate.
• Keep Records: One logical fallacy we all run into is thinking that we'll remember every credit card purchase or bill and what it was for. Chances are, by the time you need to reconcile your accounts, you might not remember as well as you thought you would. Add in additional employees and accountants, and you have a recipe for a very disorganized account. Create systems that help you keep record of expenses, mileage, and other key accounting portions to save yourself the headache of trying to remember every detail. 
   
• Create a System: If you haven't already, make sure your company's accounting system is meeting your needs. Think through how you are handling the finances and books of your company and what systems would help you stay organized. Having a system in place takes out the guesswork and ultimately adds a level of organization. 
• Organize Your Files: We all have a tendency to throw all our receipts, bills, and other miscellaneous items on our desk, but things tend to get lost and forgotten about when we do this. Create a file system that neatly organizes everything in a way that works for you and your business. It might be a big chore in the beginning, but once you get in the habit, your business will be much better off. 
   
• Go Paperless: If simply organizing your files isn't enough, employing some kind of online, cloud-based system you may be able to save time and energy by streamlining and improving your accounting processes. Computer-based accounting systems have come a long ways in recent years and we're confident they will help you get organized when used properly.
• Keep it Simple: Oftentimes, in fear of messing up a company's books and accounts, the accounting systems and practices in place are often overkill with duplications and extra work that ends up making it more confusing. Take a long look at your accounting and bookkeeping practices to make sure your systems make sense and help keep the business organized. 
• Ask for Help: If you've done your best to organize your accounting and bookkeeping practices, but still need help, that's okay! The Tally Services team is here to lend a hand, advice, or training to ensure your business's accounting systems and practices effectively meet your needs.

Now that you've gotten a handle on organizing your accounts, head over the to the Tally Services blog to read other helpful accounting and bookkeeping tips.