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5 Tips to Keep your Clients’ Bookkeeping Up-to-Date

Cloud-based accounting tools have eased the job of accounting and bookkeeping service providers. More businesses are adopting online or cloud-based accounting systems. These systems help you collaborate with the clients efficiently.

Keeping the client’s bookkeeping records consistent shouldn’t take a toll on you if you have the right plan in place. One of the best bookkeeping tips is to use the right tools and communication with the clients properly so that it can help you streamline the bookkeeping process.

At Pransform, we help our clients to utilize the right tools such as QuickBooks, Xero, and FreshBooks to name a few. We also guide our clients for effective management of their workload. 

5 Bookkeeping Tips to Keep your Clients’ Bookkeeping Records Up-to-Date

Understanding the bookkeeping needs of your client should be your priority. For instance, whether your client already has a cloud-based accounting solution and is looking for advanced data analysis. On the other hand, a business looking for essential bookkeeping services would require a different servicing plan.

Here are our top 5 bookkeeping tips to keep your clients’ bookkeeping records up-to-date.

1 Switch to Cloud-Based Accounting

Suggest your clients shift towards cloud-based accounting and bookkeeping solutions if they haven’t already. Cloud-based accounting will bring automation and consistency to the bookkeeping system for your clients. In return, it will help you maintain the bookkeeping records of your clients efficiently.

Once you integrate a cloud accounting software such as Xero, you’ll save more time on bookkeeping tasks. It will give you more time for planning and servicing more clients with bookkeeping needs. Cloud accounting software will also help you maintain the bookkeeping records with reduced errors. Hence, maintaining up-to-date bookkeeping records will become easier for you.

Pro Tip: Help your client choose the right accounting solutions that integrate useful third-party apps as well.

2 Track Every Transaction Daily

Cloud-based accounting will bring automation into your client’s bookkeeping system. Once your client links the bank account with the cloud accounting software, transaction tracking becomes easier.

Make sure your client has a segregated business bank account. Also, ensure that your client records all transactions that take place in cash or on credit terms. This way, your client will not face any unrecorded transactions. Eventually, it will help you maintain the bookkeeping records for your client.

Businesses have a number of transactions in the payables and receivables categories. Often, they have deferred entries such as cash-in-transit as well. Tracking such transactions for each accounting period is pivotal in maintaining accurate bookkeeping records.

3 Maintain Financial Records with Segments

Once your clients have accounting software in place, you can easily categorize financial records. You’ll start by categorizing transactions into different categories. These ledger accounts can be easily created with automated accounting solutions.

Segregated ledger accounts are an essential part of any bookkeeping system. These accounts will lead you to categorize financial records into segments. For instance, maintain and follow-up the client’s financial records with the following broader categories:

  1. Assets – Current Assets and long-term assets

  2. Liabilities – Current liabilities and long-term liabilities

  3. Revenue sources including sales, interest, investment profits, etc.

  4. Expenses

  5. Owner’s Equity or net profits after deduction of all expenses

4 Communicate and Collaborate with Clients Regularly

Cloud accounting solutions will make collaboration with clients easier for you. However, if your client does not use any online software or cloud-based accounting, you’ll need to keep in touch regularly.

Regular communication with the clients will help you maintain the bookkeeping records timely. It will also ensure that both sides remain on track with the desired accounting goals. Use the communication to convey any regulatory changes in taxation or accounting standards to your clients.

5 Set a Reconciliation Schedule with your Clients

Despite automation and regular communication with the clients, you’ll need reconciliation of records. Set a reconciliation schedule with your clients and consistently follow it.

You can choose the reconciliation schedule as per the client’s needs. For instance, for a business with a large number of transactions, you’ll need a weekly schedule. For small businesses with a low number of transactions, a monthly reconciliation schedule will suffice.

With cloud accounting, most of the reconciliation tasks are performed with automation. However, you’ll still need to perform a physical check with your clients. You can start with the bank reconciliation and move on with other segments such as invoices, payables, cash-in-transit, and expense tracking.

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