{"id":23551,"date":"2023-04-26T10:33:20","date_gmt":"2023-04-26T10:33:20","guid":{"rendered":"https:\/\/envoice.eu\/?p=23551"},"modified":"2024-01-31T11:24:25","modified_gmt":"2024-01-31T11:24:25","slug":"bookkeeping-workflow","status":"publish","type":"post","link":"https:\/\/envoice.eu\/en\/blog\/bookkeeping-workflow\/","title":{"rendered":"Bookkeeping Workflow &#8211; How to Create an Efficient and Automated Workflow"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Is your bookkeeping workflow getting harder to manage?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Are you spending hours entering client information invoices into your accounting software and you\u2019re drowning in paperwork?\u00a0<\/span><\/p>\n<p><b>Your inefficient process could be the culprit!<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Addressing problems with workflow management could be the key to making accounting firms, finance departments, and other bookkeeping-related service providers increase productivity. We will talk about improving bookkeeping workflows in this guide to help you:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Free up your time by designing an efficient workflow<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Stay on top of your accounting projects<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Utilize technology to increase productivity while maintaining excellent work quality<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Before we dive into the details, here\u2019s a brief overview of what workflows are and why you need them.<\/span><\/p>\n<h2 style=\"text-align: center;\"><b>Why Does Your Business Need a Bookkeeping Workflow?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Accounting and all other services and business processes require an efficient workflow.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Workflows refer to the series of actions you have to do to complete projects. The to-do list where you enumerate all the steps your team needs to do for each client or at the end of each month is an example of a workflow.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whether you have a large company or a small business, you need an effective workflow that allows you to monitor all projects, delegate work to all team members to maximize productivity, and track down all financial information quickly.<\/span><\/p>\n<h2 style=\"text-align: center;\"><b>Designing A More Efficient Workflow for Your Bookkeeping Project<\/b><\/h2>\n<figure id=\"attachment_23560\" aria-describedby=\"caption-attachment-23560\" style=\"width: 800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-23560 size-full\" src=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-1.jpg\" alt=\"manual bookeeping\" width=\"800\" height=\"533\" srcset=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-1.jpg 800w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-1-300x200.jpg 300w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-1-768x512.jpg 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-23560\" class=\"wp-caption-text\">Getty Images by Canva<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">All bookkeeping workflows look similar, but you may have additional steps depending on the reporting requirements of your organization.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you already have a bookkeeping workflow, you\u2019re ahead of the game. If not, it\u2019s time to create a repeatable process that will reduce the time and effort it takes to manage projects<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Creating a repeatable process reduces the time spent by each team member on regular tasks in the bookkeeping process. Increasing productivity while improving efficiency reduces costs and frees up time for more strategic activities.\u00a0<\/span><\/p>\n<h3><b>How to Perform Your Main Bookkeeping Tasks Faster<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Each organization may follow slightly different steps when processing payroll or performing specific accounting functions. However, many processes follow these steps:<\/span><\/p>\n<h4><b>Task #1: Information Request and Data Collection<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Without numerical data, the bookkeeping process can\u2019t begin. So, it all starts with requesting information from your clients, if you\u2019re running an accounting firm or other departments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let clients or other departments know that they have responsibilities and deadlines. If they can\u2019t send the data you requested, you can\u2019t finish the financial reports on time. Accountability is a big part of this first step.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sometimes, you may have to send multiple information requests and send follow-ups to receive the information you need. Always document all communication related to the data request along with the dates so you have the most updated information on the status of each project.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you receive the information and verify that you have everything you need, don\u2019t forget to mark it off your checklist.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Pro Tip:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Give your clients or coworkers a checklist of what you need, deadlines for submitting information, clear guidelines, and templates. Send automated reminders, if possible, so they receive a nudge when it\u2019s time to comply with your data request.<\/span><\/p>\n<h4><b>Task #2: Data Processing and Supplementary Data Request<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Once you have the information you need, it\u2019s time for the most time-consuming part &#8211; processing data. Many accountants struggle with this part of the workflow, especially when the step requires keying data manually. For 63% of accountants, manual data entry is a pain point.<\/span><span style=\"font-weight: 400;\">[1]\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You need to enter all information into the system before you work on categorizing and reconciling accounts. Aside from that, you need to cross-reference information to verify the accuracy of the information received.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">During this step, you may also encounter transactions that make it necessary to request more information.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, the business may have purchased equipment. In this case, you need more information to know if there are other expenses like installation fees and freight that should be part of the equipment cost.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-23558 aligncenter\" src=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-2.jpg\" alt=\"uploading documents to envoice\" width=\"800\" height=\"533\" srcset=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-2.jpg 800w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-2-300x200.jpg 300w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-2-768x512.jpg 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/span><i><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Pro Tip:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Invest in technology to perform automatable processes like data entry. 50% of organizations use OCR and you can too.<\/span><span style=\"font-weight: 400;\">[3]<\/span><span style=\"font-weight: 400;\"> Tools like Envoice help you<\/span><a href=\"https:\/\/envoice.eu\/en\/features\/automation\/\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">capture data from invoices instantly<\/span><\/a><span style=\"font-weight: 400;\"> and perform other tasks to speed up pre-accounting processes.<\/span><\/p>\n<h4><b>Task #3: Report Creation<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">After the number crunching part comes report creation. All information gathered from various resources should be in a format that the end users \u2013 top management and other stakeholders \u2013 can understand and interpret.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Mistakes in financial reports could affect decision making, so it\u2019s critical to do a final check before sharing information.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Specify steps required for the internal review and approval process. Delegate responsibilities to your team and identify who will perform the final review and approve the report for sharing with other parties. It also makes sense to enumerate the types of reports you need to prepare.<\/span><\/p>\n<h4><b>Task #4: Update and Communicate Results to Clients\/Stakeholders<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Once you get the green light to send the final report, you have to share information with your client or other stakeholders who need the information. Create and maintain an updated checklist of individuals authorized to receive the report.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If some reports can only be shared with specific individuals, find a way to alert your team about it. Don&#8217;t forget to create a process for tracking updates or revisions made after sharing the report.<\/span><\/p>\n<h4><b>Task #5: Filing and Archiving\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">After creating the final version of your report and you\u2019re done with all requirements for the period, you have to archive and file information. You also have to create backup data for future reference.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Label all reports and information properly whether you\u2019re storing them in file cabinets or as a digital copy. Convenient access to this information makes it easier to provide data when needed for an audit or management\u00a0 review.<\/span><\/p>\n<h5><b><i>Additional Tip For Designing Your Bookkeeping Workflow<\/i><\/b><\/h5>\n<p><span style=\"font-weight: 400;\">In the list above, we described what each major task includes. In your workflow, break down all actions involved in the process. Be as specific as possible. For instance:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enter invoices received for January 2023<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Check invoices paid as of January 31, 2023\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: center;\"><b>Is There a Better Way to Manage Bookkeeping Projects?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Running an accounting practice or an entire department can be challenging. But if you\u2019re missing key deadlines and it\u2019s getting harder to meet your targets, re-examine your existing workflow.\u00a0<\/span><\/p>\n<h3><b>Workflow Management for Bookkeepers: Best Practices<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Every successful business needs a workflow for its accounting process. Create your workflow first and make it better with these tips.<\/span><\/p>\n<h4><b>#1. Find a Way to Manage and Track Where You Are in Your Workflow\u00a0<\/b><\/h4>\n<figure id=\"attachment_23556\" aria-describedby=\"caption-attachment-23556\" style=\"width: 800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-23556 size-full\" src=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-3.jpg\" alt=\"teamwork\" width=\"800\" height=\"533\" srcset=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-3.jpg 800w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-3-300x200.jpg 300w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-3-768x512.jpg 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-23556\" class=\"wp-caption-text\">Source: teamwork<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Whether you\u2019re running a small or large business, you need a way to track all your projects and the status of each. You can make &#8220;to dos&#8221; with sticky notes and actual checklists or use a spreadsheet program like Google Sheets if you only have a few projects to manage. However, you can do more with workflow management software.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using practice management software is more effective in helping you stay on top of things especially if you\u2019re juggling multiple clients and responsibilities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Asana, Teamwork, Quickbooks Online Accountant, and Xero Practice Management are some practice management apps that provide you with free workflow templates.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Find a workflow management tool you&#8217;re comfortable with so you and your team can stay on the same page.\u00a0\u00a0<\/span><\/p>\n<h4><b>#2. Introduce Automation to Your Accounting Workflow<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">When the problem lies with how you do your accounting work, technology could be the solution your team needs to stay on deadline without sacrificing rest.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">About 45% of accountants plan to automate time-consuming and repetitive tasks like keying information and organizing numerical data.<\/span><span style=\"font-weight: 400;\">[2]<\/span><\/p>\n<figure id=\"attachment_23554\" aria-describedby=\"caption-attachment-23554\" style=\"width: 800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-23554 size-full\" src=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-4.jpg\" alt=\"man looking at an automated workflow in the office\" width=\"800\" height=\"533\" srcset=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-4.jpg 800w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-4-300x200.jpg 300w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/bookkeeping-workflow-4-768x512.jpg 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-23554\" class=\"wp-caption-text\">Getty Images by Canva<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">PRO TIP<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Use automated workflows where applicable and<\/span><a href=\"https:\/\/envoice.eu\/en\/integrations\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> integrate business apps<\/span><\/a><span style=\"font-weight: 400;\"> you&#8217;re using every day to reduce duplicative work. For instance, if you have expense management software integrated into your accounting software, you can transfer information from one tool to another with the push of a button.<\/span><\/p>\n<h4><b>#3. REVIEW AND IMPROVE EXISTING WORKFLOWS<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Your organization will change over time, and so should your workflow. Evaluate how successful existing workflows are. Modify or replace tasks as your processes change. Business workflows are always a work in progress. An efficient process now could become inefficient in the future.<\/span><\/p>\n<h3><b>Manage Bookkeeping Workflows the Smart Way<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Effective workflows allow organizations to increase productivity, reduce micromanagement, create more consistent rules, and speed up financial report creation. Investing time and effort in designing a workflow that fits the needs of your organization is crucial for business success. Most importantly, don&#8217;t forget to make technology part of the process.<\/span><\/p>\n<p><b>Test the<\/b><a href=\"https:\/\/envoice.eu\/en\/for-accountants-bookkeepers\/\" target=\"_blank\" rel=\"noopener\"><b> Envoice automation tool for accountants and bookkeepers<\/b><\/a><b> to find more ways to design an intelligent workflow.<\/b><\/p>\n<p><a href=\"https:\/\/app.envoice.eu\/desktop\/user\/register\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Sign up<\/span><\/a><span style=\"font-weight: 400;\"> for the demo version today.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[1]<\/span><a href=\"https:\/\/www.sage.com\/en-ca\/blog\/how-accountants-can-use-automation-data-entry-challenge\/\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Sage<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">[2]<\/span><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2020\/07\/The-Practice-Of-Now-2020.pdf\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Sage: The Practice of Now 2020<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">[3]<\/span><a href=\"https:\/\/www2.deloitte.com\/us\/en\/insights\/focus\/technology-and-the-future-of-work\/intelligent-automation-2022-survey-results.html\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Deloitte<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is your bookkeeping workflow getting harder to manage? Are you spending hours entering client information invoices into your accounting software and you\u2019re drowning in paperwork?\u00a0 Your inefficient process could be the culprit!\u00a0 Addressing problems with workflow management could be the key to making accounting firms, finance departments, and other bookkeeping-related service providers increase productivity. We [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":23552,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[117],"tags":[],"class_list":["post-23551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-resources-tips"],"acf":[],"_links":{"self":[{"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/posts\/23551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/comments?post=23551"}],"version-history":[{"count":5,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/posts\/23551\/revisions"}],"predecessor-version":[{"id":24550,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/posts\/23551\/revisions\/24550"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/media\/23552"}],"wp:attachment":[{"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/media?parent=23551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/categories?post=23551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/tags?post=23551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}