As a small business owner, you’re pulled in many directions and have your hands in almost every aspect of your business. But one area to which you should pay particular attention is keeping close tabs on routine financial tasks. Small business owners who lack the time or resources to keep track of their money are more susceptible to fraud and crime. Automating your finances is a practical way to overcome these resource constraints and more effectively protect your business.
Here are three ways you can automate routine financial tasks to protect your business quickly and easily.
If you had the time to reconcile your cash daily, spotting fraud early and stopping it would be much easier. But manually entering expense data makes reconciling a time-intensive task for many owners. However, it is possible to automatically reconcile and track your money daily and conveniently with online tools. Many banks offer cash management solutions for small businesses that make tracking cash easier by automating daily reconciliations, as needed.
Most businesses have accounting software packages that automatically generate detailed financial reports that help track and audit for theft and fraud. Unfortunately, because you need to input financial information manually, you are unlikely to have this information at your fingertips when you need it.
Downloading your financial information from online accounts into your accounting software package enables you to more easily and quickly get the information you need to track and monitor your money. Your online banking account should allow you to download your financial information into your accounting software automatically, avoiding manual data entry.
If you make most of your payments online, tracking your expenses will be much easier. Doing business electronically gives you convenient access to all of your financial information online, quickly and in real time.
For example, certain online tools allow you to export your payroll expense information directly into a spreadsheet software or QuickBooks®. That way, your accountant or bookkeeper can easily generate reports that help you track, manage and allocate labor costs.
If you pay electronically, your financial institution should allow you to track all of these transactions online at any time, from anywhere with a secure connection. Banks make it easy to set, compare and analyze monthly budgets by storing information about all of your personal and business credit and cash accounts.
This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.