Accounting plays a vital role in businesses of all sizes, but often becomes a source of frustration and embarrassment especially when trying to maintain it while juggling other day-to-day business responsibilities. However, accounting should never be treated as an afterthought.
Maintaining a balanced book can help financially plan months into the future and alert you to possible financial discrepancies. The right accounting data could even help you save your business in case you run into any obstacles.
One of the reasons accounting is often put on the back burner, especially for SMEs and freelancers, is that it is tedious and intimidating. Indeed, 40% of business leaders believe that financial management is the most difficult part of running a business. When accounting errors occur, it could stop the growth of a business and put you on shaky ground.
In this article, we’ll try to put together some accounting tips and advice to help you avoid common mistakes that could have a bad impact on your business.
The use of invoicing software in Tunisia
Trying to keep accurate records is quite a complex process. As your business grows, this process becomes even more stressful. A single transaction completed can involve several time-consuming and tedious steps. Keeping records for many types of transactions then becomes overwhelming.
This is where the help of technology comes in. Online invoicing software can speed up and even improve your cash flow. After all, the whole point of invoicing is to get paid and when you’re an entrepreneur, your time is money.
Traditionally, invoices were created at the end of each month, printed and mailed. The time this process takes is, by today’s standards, a bit ridiculous especially when there are options to get your factors out to your customers in seconds.
Invoicing software allows you to automatically assign sequential invoice numbers. No more searching for the previous invoice number. Access invoices from anywhere, from your tablet, smartphone and pc. Even invoice your customers on the spot!
Personalize your invoice template, not only with different layouts, but also with colors, fonts, images and of course your Logo.
All in one place, with invoicing software in Tunisia, scattered papers, accumulated binders, manila paper folders are a thing of the past. Stay organized easily with one account.
Choosing to work with online invoicing software can improve the speed of communication and interaction, which goes hand in hand with building a professional image with your customers.
Billing software in Tunisia should provide you with the following for easy accounting management: graphics that give you an overview of the state of your business. Easily see which months were the most active or which customers are the most loyal. Numbers can help you provide more personalized service.
Create invoice designs that express the soul of your business. Promote your brand and express your creativity to your customers. Easily manage invoice status by instantly seeing which invoices are viewed, unpaid, or overdue. And send a reminder to customers who forgot to pay their bill with one click.
With the use of invoicing software in Tunisia, your customers will see a business under 100% control. They will benefit from an efficient, communicative and professional experience that will enhance your business.
We have all, at some point in life, lost a very important document. In a business, the loss of a document like an invoice, a receipt, a quote can upset the whole bookkeeping and create major problems. Having a duplicate of all your paper or digital documents can save you a day in case of need.
Use cloud storage
Backing up your documents to a cloud system is the most efficient way to preserve your archives. Even in the event of a computer failure or disaster, your data is kept securely in a remote storage system accessible anytime, anywhere. Keep in mind that the invoice must be able to be kept ten years after the date of issue.
Invoicing software in Tunisia automatically saves you all your documents in a cloud system to avoid losing your accounting documents.
Classify invoices correctly
For effective accounting management, a well-defined document classification system must be set up, for example, consider listing your invoices and quotes by monthly file, chronological order or even color codes.
Analyze Cash Flow
When performing weekly and monthly financial reviews, consider producing a Cash Flow statement. These statements give you a broader understanding of the cash flow movements of your business. A cash flow statement basically monitors the direction of income. It also includes the time element, allowing you to view payment cycles and seasonal expenses.
Cash flow statements can give you the knowledge you need to anticipate expenses and allocate income more appropriately.
On the other hand, you no longer need to generate a cash flow statement to understand the financial movement of your business. Just using the right invoicing software in Tunisia can help you get a holistic view of how cash works in your business model. This way you can easily view metrics and cash flow data.
Record cash expenses
When you are an entrepreneur, it is essential that you keep track of your business expenses. That way, these costs can be subtracted from your total income amount when it comes time to do taxes.
This will give you a better idea of your overall profitability for the year. It’s easy to look at past expenses paid in cash. Request a receipt from your supplier or immediately record the expense to ensure it is on the books.
Know the difference between invoices and receipts
Mixing up invoices and receipts is a common way for entrepreneurs to mess up their books. A simple accounting tip to follow is to know the difference between the two.
An invoice is sent to customers once they have received your services or products. Think of invoices as a detailed document that describes everything the customer has received from your business. An invoice reminds customers that they owe you money. They are useful for keeping financial records and making sure you get paid.
A receipt is proof that a transaction has taken place. Once a transaction is complete, you send your customers a receipt.
Mixing up receipts and invoices can make your bookkeeping a nightmare. You are going to have a lot of obstacles when trying to balance the pounds.
However, if your documents are filed in invoicing software, you no longer fear this mess.
Looking to the future
Finally, when you do a monthly financial report, use it to help you anticipate the financial trajectory of your business. It might simply involve identifying future costs, such as tax payments or legal fees. Still, he could incorporate more nuanced plans for business expansion, including budgeting for new hires and more expensive rents.
Forecasting in this way can allow you to effectively use existing assets. It can also help you confidently plan other important milestones in your business development. Plan efficiently by analyzing your financial data on a monthly basis. Data-driven analysis can ensure smart investment movements.