Why is it important to clean up and reconcile transactions on a monthly basis?
All businesses, whether it is an enterprise or a small business, make numerous transactions every day which leads to many entries being made in the entry book. As a result of the various transactions, the chances of error can be drastically increased. There are multiple issues that business owners face in their day to day operations – from back room inventory overflows, journal entires errors, scheduling problems, and invoicing errors, just to name a few.
One of the best ways to avoid such hardships is through a “clean-up” of the accounting book every month. If the accounting book is not cleaned up regularly, it will continue to be disorganized which can be bad for any business.
How much time should a businesses invest in cleaning up the accounting records?
We suggest to invest a few hours each month to review the company’s finances. It is extremely important to keep all financial/accounting records up to date and to have a clear understanding of your company’s financials at all times.
Although, cleaning up the accounting book regularly is time-consuming and requires a lot of focus, businesses can save time by outsourcing their work or by using a SaaS product like G-Accon. G-Accon will save you time and effort which can instead be used to improve business productivity and efficiency.
What is the outcome?
Accurate data plays a huge role in making educated decisions. Thus, cleaning up the accounting records of the company is one of the most important a company can do. Cleaning up your financials is more than just desirable. In some cases, they are specifically required. For example, acquiring investors or partners is one scenario where clean financials are essential. Providing flawed financial data can botch a pending deal or result in penalties later down the road. Furthermore, these records are always required in the event of an audit. Therefore, not having such records can delay the audit process. Similarly, providing muddled or incomplete records can result in penalties and other undesirable consequences.
How to clean up “Line Item Description” in Invoices.
One of the examples of a “cleaning up” scenario is when a user wants to update the invoice descriptions in more than 200 invoices. In order to update descriptions in 200 invoices, you would first need to download these invoices into google sheets by using the Design Accounting Reports option from G-Accon. Then, you need to edit the invoice descriptions and create “the upload template” or use a template from our cloud template library. Finally, you have to execute “the upload template” with your selected data. In order to verify any or all changes, you can download your invoices into google sheets. With these same steps, you can also clean up any accounting data such as bank transactions, invoices, quotes, bills, purchase orders, and ect.