When you start your own business, you quickly realise how much time accounting takes up.  Keeping track of receipts, reconciling bank accounts, and managing taxes can take hours each week.  Even if it isn’t your favourite task, accounting is an essential part of being a business owner.  Accounting is also something that doesn’t get easier as your company grows.  Keeping track of expenses and revenue will always be a challenge for small businesses.  Thankfully, automating your accounting processes can make things much easier for you and your team in the long run.  Moreover, automating these processes can help reduce accounting errors, which is especially beneficial when it comes to taxes.

In this blog post, we cover some of the benefits of automating your accounting cycle.  We will show you how NetSuite can save you time and remove mundane tasks from your busy schedule.

 

Reduce Accounting Errors

Perhaps the most immediate benefit of automating your accounting process is a reduction in accounting errors.  The more hands-on an accounting process is, the more likely it is that errors will creep in.  With NetSuite, you have the option of setting up an automated invoicing process.  This means that you don’t have to manually create new invoices every time you do a job.  Instead, you can set up a template that your team can follow every time they complete a job.  This ensures that everyone is using the same format, which reduces the risk of errors.  You can also set up your bank account to automatically pull funds on a regular basis or transfer funds to your tax account.  This makes it easier to stay on top of your financials but also reduces the possibility of errors.

 

Know What Is Going On At Any Time

Another benefit of automating your accounting is that it allows you to know the status of each transaction at any given time.  If you have your bank account set up to automatically transfer funds to your tax account every quarter, you’ll never have to wonder if you’ve paid your taxes on time.  This applies to invoicing as well.  Instead of manually creating invoices every time you get a job, you can set up NetSuite to automatically create invoices whenever the appropriate conditions are met.  This means that you’ll always know how much money you have coming in and when it will be due.  It also means that you’ll never have to wonder if a client has paid their bill on time or if they’ve even seen the invoice at all.

 

Track Company Growth Over Time

Another benefit of automating your accounting processes is being able to track company growth over time.  Generally, you’ll want to factor in payroll taxes, sales tax, and various other expenses when calculating the cost of doing business.  This can make it difficult to see how much your company is actually making.  With automated accounting, you’ll be able to see exactly how much money you’ve made in a given time period.  This allows you to see how much money each client has generated and how much profit your company has made.  You can also use accounting software to track expenses, which makes it easier to see how much money you’re spending.

 

Be Aware of Tax Requirements

Last but not least, accounting automation will also help you be more aware of tax requirements.  For example, if you are using accounting software like NetSuite and you employ contractors, then you need to keep track of all of the payments you are making to them.  This is important because, unlike employees, contractors don’t pay taxes themselves.  Instead, their clients are responsible for paying their taxes on time.  If you don’t track the money you’re paying contractors, this could lead to issues with HMRC.  Again, this is where automatic accounting comes in handy.  It makes it easier to remember to track your contractor payments and make sure they get to the right place.

 

 

There are many benefits to automating your accounting efforts.  It makes it easier to keep track of expenses, revenues, and tax information.  It reduces the risk of accounting errors.  And, it allows you to better track company growth over time.  If you’be been struggling with accounting as a small business owner, Cofficient can help.  We can tailor a NetSuite package that suits your exact needs.  It can really make a big difference to your business.

 

Start automating your accounting cycle today.