The Perfect Step-by-Step Accounting Setup System

Managing your finances can be a tricky, stressful and time-consuming process, especially if you are unsure of what you are doing. However, setting up an accounting system doesn’t have to be a pain in the neck.

Simply follow the easy step by step guide as outlined below to a breezy accounting setup. Start with filing, work through payments and wages and end with credit card statements. Then you can return to what’s important and let the accounting system take care of the finances.

After all, that’s what an accounting setup system is there for.

Filling:

1.	Set up a documented administration system. Ensure that nothing gets filed or put away until it has been entered into the computer system.
2.	To make sure you do not accidently file something away, create your own personal system to remind you. Some people opt to write P for Posted or use a stamp that says “Posted” or “Ready to file” or something along these lines.
3.	Get into the habit of doing this on a monthly basis. Set up a certain time or day that is allocated to accounting work and stick to the schedule.

Payments:

1.	Open that dreaded “unpaid bills” folder and grab your cheque book.
2.	Select which bills you are going to pay
3.	Write out the cheque and make the payment on the computerized system
4.	Issue a remittance advice slip with the cheque or write out an envelope
5.	Pass the bills to the right person for signing purposes (or sign them yourself) and post them accordingly.
6.	Grab that handy little stamp that says “Paid” on it and stamp all the paid bills,
7.	File accordingly. Most people choose to file either alphabetically, by supplier’s name, by date order, by cheque number or in another systematic order. It’s entirely up to you.

Wages:

1.	Create an efficient timesheet for your employees to fill in with the correct time and date they arrive, take lun-ch and leave for the day. Ensure your employees fill this out daily, not weekly for accuracy. Leave it by the door to help remind your employees.
2.	Run the payroll program and decide on a payment plan (bi-weekly or weekly).
3.	When payday comes around, print out the pay slips twice. Always keep a copy on file in a folder for each of your employees.
4.	Figure out a system for payment. While many companies use cheques, it is also common to use an online payment system or a direct debit account system. Weigh the options to decide which is best for your company and your employees.

Credit Card Statements:

1.	Make sure that you keep all your credit card statements. Most likely your credit card is your main company card of choice when it comes to purchases.
2.	When the credit card statement arrives, break down the different purchases into codes such as “Supplies,” “Travel”, etc. This way you can know where the money is coming out of and where you need to budget, if need be. Furthermore, you can see which are taxable and which purchases can be written off.
3.	File all credit card statements in a file marked especially for that purpose.

These four processes can be made simple, fast and effective just by following the above accounting set up steps.

In today’s economy, having and maintaining a successful business is a difficult task. Do not make harder than necessary by keeping sloppy records. Good book keeping allows you to have your financial records at you fingertips with a moments notice. In certain circumstances, that could mean the difference between success and failure.

Whether you are doing the book keeping yourself or hiring an outside firm, if the records are kept weekly, or even monthly, it is very easy to access them and be able to keep a check on the finances. You have access to your monthly bills. If a creditor is insisting that a bill is unpaid, you can easily give them the information if the payment was sent; you can see when, and how and if the payment went through your banking account. Likewise, if you are arguing that you want lower fees or you are thinking about switching providers, you have all of your information handy to help to make your case. Having the information you need without having to call back will often make a huge difference to the creditor or provider you are speaking with. If they have made a mistake, they are much more open to giving you a price break or adding a service while you are speaking to them.

If you need to inquire about a loan for your business, good book keeping will help you with the loan officer too. They not only want to know that they are making a good investment; it helps if you can show them exactly what your financial picture is. It never hurts to have good bookkeeping; it helps you to make the case not only that your creditors are paid on time, but that you also have the means to make any payments required. Of course, the loan officer has access to the information they need, but it is much more impressive if you have it with you when you make your presentation.

Good bookkeeping also makes a big difference at tax time. All of those expenditures you had during the year are difficult to put together if you wait until the last minute, you may miss some of the items that can give you a tax break. Keeping up with your bookkeeping weekly or monthly gives you an opportunity to be sure that you get all of your expenditures recorded, and you can add post it notes on items that you want to clarify at tax time. Keeping up with your bookkeeping ensures that you can get to your receipts anytime you need to, that all your information is filed neatly and appropriately so that you can file for tax credits that may apply. It also gives you the necessary back up should your business be audited.

Having your bookkeeping done in a timely manner, saves you time and money. And in some cases it can help you to build a good business reputation.

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