By Holly DeVito
People outsource certain financial controls of their business for different reasons. It can be a good way to safeguard against employee or even executive level power abuses. Outsourcing also allows checks and balances without placing excess strain on the time of the business owner.
1. Strategic Assignment of Fiduciary Controls
A crucial step in setting up proper accounting procedures is to split up the responsibilities required for issuing payments. The check request should be assigned to someone without check signing authority. Assign the printing of the checks separate from the final signer of the payments. Take everything a step further and have the person requesting the checks be internal, the person writing the checks be external, and have the person approving and signing the checks be the business owner. This saves the owner time, reduces the risk of check writing errors, and allows for timely cash flow reviews.
2. Separation of Bookkeeping & Tax Filing
Independent service providers will inform the business owner if they ever find errors in the work of another service provider. Your bookkeeping is reviewed by tax professionals each year when reporting tax liability. Consider having your books reviewed by a bookkeeper on a monthly or quarterly basis, it can save time and money at the end of the year. Additionally outsourcing with double checks built in provides peace of mind that both companies will be looking out for your best interests and report discrepancies. Consider having your books reviewed by a bookkeeper on a monthly or quarterly basis, it can save time and money at the end of the year.
3. Regular reporting of expenses (weekly, monthly)
Set up a structure that requires regular reporting of expenses from employees allowed reimbursements. This allows for a tighter hold on cash flow management as the business owner can better anticipate expenses and decrease surprises. This system allows for timely forecasting when reviewing annual activity. As an added benefit employees will enjoy a quicker reimbursement turnaround.
4. Reliable Time Sheets
Reliable time sheet software is essential for busy business owners to streamline the payroll process. The time sheet software industry is competitive right now as an industry leader is trying to emerge. We suggest compiling a list of “must haves” when navigating this space to avoid getting distracted by bells and whistles. Some of the software allows employees to enter and track hours from their mobile devices. This provides the manager freedom to approve time on the go, taking out potential bottlenecks in the payroll process.
Instating these tips will help keep business operations running smoothly and allow you time to get back to doing what you love, growing your business.
Holly DeVito is the CEO of Sum of All Numbers. The primary focus of Sum of All Numbers is to provide small business owners with the tools they need to effectively manage their business financials. Holly and her team provide simple solutions for gathering financial data to guide business owners to sound financial business decisions. Her passion for assisting small businesses led to the establishment of Sum of All Numbers in 2006. For more information, please visit: www.SumOfAllNumbers.com