There’s no time for downtime in the accounting world. Business financials move faster than ever thanks to digital payments and automation. While these tools help increase the reach and impact of your organization, they can also make financials more complex. Ease the hustle and reduce your error rate by adopting time-blocking techniques. These techniques can help establish a schedule and natural cadence for key tasks, ensuring well-managed finances and on-time reporting.
1. Start the Day With a Morning Kick-Off
Banish the morning warm-up and instead start the day with a set of check-ins. Before the day gets away from you and your team, gather the group to align their goals. Schedule a quick 15-minute huddle, either digitally or in person, that represents a baseline expectation with your team. Kick off your huddle with the daily deliverables and goals for the group and encourage teammates to announce shared expectations. For example, your controller may need certain reports by the end of the day or two analysts need to meet. This 15-minute session is short and sweet for a reason; team members must be prepared for time to share. Announce daily tasks and who will be responsible for them. Teams often prioritize transaction reviews, payment processing, and receipt logs for daily work. Use your accounting software to centralize this daily check and reduce the need for manual reports. Modern software can present this information in a dashboard format, making this a 30-minute or less task.
2. Complete a Weekly Financial Review
End each week with a clear picture of your organization’s financial standings by standardizing a weekly financial review. Block time at the end of the week to reconcile accounts and follow up on any outstanding items. Set this weekly review in alignment with your standard operations, especially if work hours differ. Many organizations have adopted a four-day workweek, while others work autonomously. While these practices may work great for your organization, they may not align with others. Standard baking hours and payment processing or posting may impact your schedule. Additionally, vendors you may need to collaborate with may not be accessible when your team is working. Use your best judgment when setting this cadence, allowing for a cushion if work hours and habits differ. Establish invoice automations and reminders to help reduce manual work and improve on-time payments. Utilize your software to provide reports to your team when invoice due dates are approaching. This can provide visibility for potential issues and allow sales representatives to follow up with clients. Use an approaching due date reminder to notify clients of potential fees or penalties. If an invoice becomes past due, automate penalties in alignment with contract agreements and schedule automatic reports weekly.
3. Run Bi-Weekly Payroll and Payments
Payroll processing can be a time-intensive task, but establishing standardized steps and routines can help. Bi-weekly payroll processing is largely accepted and can be more easily managed than weekly payroll. Use your accounting system to automatically calculate wages and deductions for your team. Allow employees to edit their preferences to reduce manual work and potential errors. Generally, employees can update their W-4, address, and beneficiary data year-round. While open enrollment season determines benefit preferences, employee retirement allocations generally can be done at any time. Set aside time during bi-weekly payroll to allocate funds for payroll taxes and analyze your obligations. Review labor costs for direct hires and contract work. A third-party contractor may be billing more than expected or missing deadlines. Compare your costs with your budget and expectations for the quarter before they become detrimental to your cash flow.
4. Close Out Each Month
Schedule profit and loss reports after the month closes to analyze revenue, expenses, and profitability. Depending on where the last day of the month falls, you may decide to run this report a few days after the last day of the month. This can allow for any pending charges or payments to be posted, reducing the possibility of accounting errors. Assess accounts receivable and payable to determine what escalation level is necessary. If a client has become a chronic late pair, it may be time to cut ties. Identify upcoming due dates for the company, bills, and what funds need to be available. Schedule a sweep or deposit to ensure you meet your obligations on time. Collaborate with your vendor management team to identify upcoming contract renewals, which often come with price increases. User accounting software to analyze financial trends over time. This can help identify materials and labor cost changes and forecast when price increases may be necessary and how much. This information will be essential when reporting data to your leadership team and any approver. The sooner you elevate these changes, the sooner your team can identify efficiency measures or plan for a price increase rollout.
Align Your Financial Year with Your Organization and Industry
The calendar may be a natural starting point for establishing your time-blocking methodology. However, use your industry standards, company culture, and schedule to develop a highly functional routine. Your executive sessions and board meetings may necessitate updated reporting before quarterly taxes are due. Additionally, if you receive federal or state funding, you may need to accelerate standard reporting times. Be empowered to do what will work best for your organization. Solidify your company wide expectations for everything from invoicing to reimbursement requests. Automate reminders, provide training, and ingrain good financial management into your company culture. When you do, you can achieve the best results on your balance sheet and beyond.