There is no doubt anyone who owns a business or works as a contractor needs to keep track of all their business documents. Many entrepreneurs often prefer to manage their finances over hiring an accountant. While this may take up a big chunk of time, it allows entrepreneurs to keep track of the financial health of their enterprises. Even if entrepreneurs hire a professional accountant, they will still need to manage their records throughout the year. However, one needs to understand the principles of accounting and bookkeeping to become an accounting clerk. Moreover, an accountant needs to learn to choose accounting software and become meticulous in handling paperwork. Below are four incredible ways entrepreneurs can account for their companies themselves.

Familiarize Yourself with Skills of Accounting Clerks

You can enroll in a lifelong learning course to learn skills that accounting clerks possess. Any entrepreneurs wishing to become an accounting clerk at their firms should hone their computer skills. Accounting clerks have an in-depth understanding of how to use calculators and computers. Being able to use a spreadsheet for managing simple finances is an excellent skill for any aspiring accountant. Moreover, anyone who appreciates numbers and is good at math can become a highly skilled accountant. You can visit a local government tax office or the Internal Revenue Service to study the terms that clerks apply to the field of accounting.

Learn to Use Accounting Software and Systems

You can take a short course to learn to use some of the accounting software such as Quickbooks or, if you don’t want to pay for the top brand, look into something like a NetSuite Alternative. Learning to use these programs helps accountants to do monthly balances and balance their payroll, debits, and credits. In fact, you can use this software to calculate your taxes at the end of the fiscal year. With so many accounting software available, it’s easier for an entrepreneur to use excel spreadsheets or ledger books for bookkeeping. You can use accounting software to double-entry bookkeeping.

Learn to Organize Your Documents

Besides a software-based accounting system, a business owner may need to archive business documents in physical files. It may also be necessary to make copies of invoices or checks that go out to keep everything straight in your accounts receivable process. That way, an entrepreneur can refer to them during auditing. Moreover, an accountant may need to archive all expense receipts for easy retrieval. You can use folders or files to store all critical documents related to a business. Filing systems helps to access a statement easily in case accounts fail to match up. Proper labeling makes it even easier to retrieve files.

Regular Comparison of Your Financial and Monthly Reports

It’s wise to seek the advice of a Certified Public Accountant if you spot significant discrepancies or when your trial balance can’t line up with your other financial statements. Learning to use T-accounts can help business owners to analyze all the recorded transactions. The trial balance could include a single ledger such as the cash disbursement ledgers, accounts receivable, accounts payable, and the cash receipts. You can hire an auditor to help double-check your statements at the end of the year. That way, it will be easier to spot minor errors such as when miscellaneous expenses exceed the budget. Bookkeeping and accounting often prove daunting even for seasoned entrepreneurs. However, the above accounting tips can help a business owner to manage their finances even without the intervention of an accounting clerk.

Entrepreneurs can manage their accounts and file taxes if they stay organized. However, it’s always wise to seek the assistance of a professional accountant to help you handle complicated accounting processes. As an entrepreneur, you also need to learn to print reports from your accounting software and store them in a filing system or binder, just in case. You can also avoid paying a chunk at the end of the year by paying your sales tax regularly and keeping records of all your employment tax.

 

by: Dennis Hung