3 Ways You’re Wasting Money on Accounting For Your Business

coins and banknotes

Every business needs a rock-solid accounting system in order to make strategic decisions. Without one, there’s no way to ensure the accuracy of your processes or to analyze your data meaningfully.

You might even land in hot water with federal agencies for misreporting transactions—resulting in fines.

Are bad accounting processes affecting your bottom line? Let’s find out:

You’re carrying out manual accounting

Accountants and bookkeepers no longer record entries in pencil-scrawled general ledgers, sitting behind a heap of documents! Thankfully, accounting software has taken over, and companies have started automating their bookkeeping functions. If you’re still in the former category, you’re wasting both time and money.

Not only do you need to invest in reliable accounting software, but you also need software that’s updated to the latest version. Good accounting software will make sure that all your accounting processes are compliant with the latest account regulations. Other than that, you can also generate all sorts of accounting reports, tax reports, and financial ratio analyses using such software.

Data inaccuracies

Most data inaccuracies occur when the data you’re processing has been entered incorrectly. This is one of the most prevalent issues that businesses deal with on a daily basis, since they have a ton of data to process.

Manual data entry is highly cost-ineffective. The process takes too much time and is highly susceptible to human errors. Plus, you might even need to hire more personnel to carry out the task.

A better option is to outsource the data entry process. Most data entry services have experts that cater to all sorts of data entry processes, like catalog data entry, logistics data entry, and e-commerce data entry.

The service will also process the data to help you reach your organizational goals. This leads to expedited project completion and effective data processing.

You’re putting in too much effort into payroll generation

Generating the payroll is one of the most taxing chores in any company. As a result, many companies fail to generate their payroll on time if they have a lot of employees on board. There are vacations to be considered, bonuses to be taken into account, and tax regulations to be adhered to. As an employer, you also have to file taxes on behalf of your employees.

We recommend getting in touch with a payroll management service and outsourcing the task. They’ll process the payroll in due time and will also make direct deposits in employees’ accounts. This will result in overall cost reduction and compliance with legal obligations. It will also take some administrative burden off your workforce.  

3Alpha is a database management service provider that provides all three of these services to businesses! Whether you’re looking to streamline your accounting or payroll processes, get in touch with us!