As a small business owner or entrepreneur, you’re no stranger to the complexities of bookkeeping. It’s an essential aspect of running your business, but it can also become a time-consuming and frustrating endeavor. In this article, we’ll delve into the hidden secrets of simplifying bookkeeping for small businesses, as shared by Matt Oliver on Medium.
When Matt embarked on his entrepreneurial journey, he faced the same challenge that many small business owners do: spending countless hours on bookkeeping tasks. He would meticulously go through each transaction, categorize them, and try to create financial statements. However, this approach was draining valuable time that could have been used for more productive endeavors.
Recognizing the importance of maximizing his time for tasks that truly added value to his business, Matt discovered a few key strategies that transformed his bookkeeping process and allowed him to reclaim his time:
Outsource Bookkeeping:
Matt realized that while bookkeeping was crucial, he didn’t have to do it all on his own. He explored outsourcing options and decided to work with an online bookkeeping service called Bench. This platform provided a team of dedicated bookkeepers who automated transaction imports, categorization, and even monthly financial statement preparation. This step eliminated the manual drudgery of entering transactions and allowed Matt to focus on growing his business.
Embrace Digital Tools:
Matt found that leveraging digital tools was a game-changer. The Bench app automatically connected to his bank account, making data retrieval seamless and eliminating the need to manually download statements. Additionally, Matt integrated Shoeboxed into his workflow. This tool enabled him to easily digitize and organize receipts by simply taking photos with his smartphone. The app streamlined expense tracking and synchronized with his bookkeeping service, making record-keeping efficient and paperless.
Automate Your Business:
Recognizing the importance of efficient invoicing and payment tracking, Matt automated these processes using Keap (formerly Infusionsoft). He also leveraged AI in accounting to transition from the cash basis to the accrual basis of accounting, allowing him to automate invoicing, payment tracking, and reminders.. By using automation tools, Matt not only reduced friction with clients but also freed up time that was previously spent chasing late payments.
In conclusion, Matt Oliver’s journey from laborious manual bookkeeping to efficient and automated processes holds valuable insights for small business owners and entrepreneurs alike. The key takeaways from his experience are:
- Choose Wisely: Entrepreneurs have several bookkeeping options, including software, traditional bookkeepers, and online bookkeeping services. Each option has its pros and cons, so it’s important to choose the one that aligns with your business needs and goals.
- Outsourcing for Efficiency: Outsourcing bookkeeping can be a strategic move, especially for those looking to focus on high-value tasks. Online bookkeeping services, like Bench, can offer dedicated teams to handle the time-consuming aspects of bookkeeping.
- Embrace Digital Tools: Leveraging digital tools such as receipt-scanning apps can significantly streamline the process of tracking expenses and ensuring accurate records.
- Automation for Growth: Automating tasks like invoicing, payment tracking, and reminders not only reduces administrative burdens but also allows entrepreneurs to dedicate more time to business growth and strategic initiatives.
If you’re seeking to streamline your bookkeeping processes and free up valuable time, taking a page from Matt Oliver’s playbook could be the key to achieving more efficient and effective financial management for your small business or entrepreneurial venture.