Case Study: Taking Bookkeeping From Stitched To Seamless

What’s the real cost of inefficient management of your businesses bookkeeping? 

Occasionally we’re approached by businesses that are yet to implement an efficient bookkeeping process in their business. This is usually because they’re lacking the guidance and knowledge of how to do this, making the process of establishing their accounting software quite overwhelming.

When a business operates without this process in place there are typically a number of issues that an experienced accountant or bookkeeper will notice right off the bat. 

Firstly, a number of expenses may be missed/not recorded, or in some cases are double charged. Their accounts receivable might have a number of overdue invoices that may or may not have been noticed. Managing staff wages is incredibly difficult and sometimes a number of payments are made incorrectly. And lastly, the pile of receipts that are stuffed into a drawer or shoebox are faded/illegible and come tax time, the client will usually be missing a number of important ones.

This can potentially cost them thousands of dollars each month.

Recently, we undertook the task of revamping the bookkeeping and accounting process for a new client that was initially trying to manage everything themselves. Requiring setup of their accounting software and a new process to make their bookkeeping seamless. 

Our Solution

We started by setting up a dedicated accounts email that we manage, which allows us to liaise directly with their suppliers (request missing invoices) and follow up debtors. 

This ensures that supplier invoices aren't paid twice as we reconcile with monthly statements, and enter bills into Xero. Where they can then approve bills for payment and upload a payment file to their bank to pay multiple suppliers, saving them from individually entering each payment into their bank’s online platform.

Next, we set them up with Dext, a receipt capturing software that allows them to snap a photo of their receipts on the go. Which prevents the dreaded pile of receipts laying around and bringing them to us in a shoebox every quarter.

For their payroll, we process wages and send them a payment file to upload to their banking platform for payment. Again, saving them time (and ensuring accuracy) in wage payments.

The implementation of this set up was a game changer for our client, allowing them to have significantly greater visibility over their finances. Which was simply impossible with their previous processes. This improved visibility allows them to make smarter, data-driven decisions, as well as efficiently maintaining accurate records.

Showing that the effective implementation of accounting software and efficient processes can transform the way your business operates.

If you’d like assistance with implementing a similar approach to your businesses’ bookkeeping, get in touch with the Growth iQ team on (08) 8126 4100 or by clicking here.