When you’re managing a business independently, there’s bound to be some trial and error that takes place as you figure out what works and what doesn’t. Unfortunately, along with the learning experience, there will inevitably be a few accounting mistakes that could set you back with overdraft fees, cash flow disruptions, and delays in paying for critical inventory and services. The good news is that such oversights can easily be prevented with a bit of preparation and the proper protocols and procedures in place.
Safeguarding against debit and credit errors will help your company avoid problems related to insufficient funds, while also making it easier to keep more up-to-date records on expenditure and revenue. While all of this might sound complicated on the surface, in reality, there are actually several ways you can reduce the prevalence of such errors using approximately two mouse clicks:
Two-Click Method #1 – Using a Faster Payments Service
The delays caused by conventional ACH bank transfers can cause accounting confusion and oversights that lead to rejected payments, overdraft fees, and even in a best-case scenario, delayed progress. Fortunately, there’s an increasingly popular alternative method of transferring funds called BACS payments. Bankers’ Automated Clearing Services (BACS) is the organization responsible for setting the standards for automated payment methods via Direct Debit and Direct Credit in the UK. To utilize BACS payments, a business must go through a payment processor that is capable of managing BACS direct credits and direct debit transactions.
Once you have an account with a provider that connects you to the faster payments network, as AccessPay do, it’s literally just a matter of using one click to login to your account and then another to initiate the process of sending same-day direct payments. Furthermore, starting the process of signing up for BACS payments also only takes two clicks. If you want to get it easily set up, you can visit this website and then request a quote in a matter of minutes. Being able to send payments faster will greatly reduce or eliminate the occurrence of debit and credit errors because you’ll have an always up-to-date ledger that isn’t skewed by two or three-day bank transfers and posted balance delays.
Two-Click Method #2 – Installing an Accounting Software
Another way to start reducing debit and credit errors within a couple of clicks is by installing a comprehensive accounting software – one click to download, and one click to install. Once you’ve installed your program of choice, which should be easy because there are only a handful of household names in this department, with Quicken, FreshBooks, and Sage being the most popular options in the UK – the next step is to learn how to use it. Regardless of which accounting software you choose, you can be sure that learning to use it proficiently will not only reduce the frequency accounting errors but also enhance your company’s financial efficiency and record-keeping capabilities.
Two-Click Method #3 – Taking Frequent Screenshots
Yet another method that only takes a couple of mouse clicks is the screenshot record-keeping technique. Click your way through installing a screenshot app on your device, and then every time you want to take a screenshot of daily revenue, expenditure, and other important stats, all you have to do is trigger a keyboard command (i.e. – pressing the Print Screen button) and then perform a couple of clicks to select a preferred file location/name the image file and save it. If you’re going to use this method, it’s very important that you have organized folders lined up for all of your screenshots, and it’s also wise to accurately name each screenshot so that you’re not stuck with a massive disorganized mess of numbered screenshots. Proper naming and cataloging will ensure that you’ll be able to easily refer back to specific dates and transactions, even after you’ve stored thousands of screenshots in your accounting folder.
Other Simple Changes That Can Improve Accuracy
Of course, not all revolutionary business changes can be completed within a few mouse clicks. Some will take a bit of time and effort to implement. For example, here’s a handful of more challenging tips you can use to complement the above methods:
- Train employees to practice proper accounting
- Research data redundancy to ensure your accounting files are routinely backed up
- Use mobile banking and payment processing apps to keep track of things on the go
- Adhere to custom checklists for business processes related to financial transactions
- Create daily and weekly overviews and summaries with detailed itemisation
With those five general tips and the two-click methods explained before, any business should be able to start on the path towards fully accurate accounting and complete prevention of debit and credit transaction errors.