Streamlining Small Business Accounting in the UK: Tips and Tools for Efficiency

Streamlining Small Business Accounting in the UK: Tips and Tools for Efficiency

Learn how to effectively manage finances and improve your company’s profitability with this guide to accounting best practices. To ensure accounting best practices, the team performs most accounting in-house with software that streamlines the accounting process, enabling efficiency and cost savings. To achieve some financial goals, it is recommended to plan and access the external global accounting services market as well.

The global accounting services market is large in size, as defined and presented in the following statistics from The Business Research Company’s accounting services global market report.

“The global accounting services market grew from USD 640.7 billion in 2022 to USD 675.14 billion in 2023, at a compound annual growth rate (CAGR) of 5.4%. It is expected to grow at a CAGR of 4.2% from USD 90 million. Accounting services include the aggregation, analysis, auditing and reporting of financial transactions to tax authorities and legal entities. This also includes auditing and preparing annual accounts, designing accounting systems, preparing budgets and providing accounting advice. ”

1 – Outsource Payroll

Accounting best practices for small businesses include outsourcing payroll processing. Outsourcing payroll processing to a payroll service company may also provide benefits outsourcing. Payroll regulations are extensive and require strict adherence. Small businesses often lack the in-house expertise to ensure payroll accuracy and regulatory compliance. If Payroll is not done on time and payroll taxes are not filed on time, employees will be dissatisfied, and penalties can be an issue. Reputable payroll outsourcing companies such as ADP and Paychex charge a reasonable fee for processing Payroll and benefits. Another advantage is that you can set up direct deposits for your employees using online payroll services.

2 – Use accounting software

Businesses can start with small business accounting software such as QuickBooks Online and QuickBooks Desktop with limited users. Alternatively, you can consider starting with Sage Intacct, which scales from small businesses to midsize businesses to large enterprises. Sage Intact is targeted at companies with 2-2000 employees.

Sage Intacct software is AICPA approved to help organizations implement and comply with GAAP (Generally Accepted Accounting Principles). As your budget, needs, and company size grow, you can continue to use Sage Intacct with its multi-dimensional reporting views and simplified chart of accounts or other mid-market accounting software such as NetSuite and Microsoft Dynamics. You can also move to

Reconcile your bank statements to your general ledger accounts on a timely basis each month using the bank reconciliation capabilities of your accounting software.

3 – Add-on AP automation software

Once you have your ERP system or accounting software in place, you should definitely consider integrating it with add-on AP automation and payment software from our global partners. Tipalti’s automation software streamlines the end-to-end accounts payable process and reduces manual invoice processing time by up to 80%. Tipalti’s AP automation software is an excellent answer when choosing the best accounts payable software. The customer agrees to this and continues to use Tipalti software to help Tipalti achieve an excellent customer retention rate of 98%. Tipalti’s customer base will exceed 3,000 in March 2023.

Tipalti collects W-9 or W-8 forms from suppliers worldwide through a white-branded self-service supplier portal. Automatically provide businesses with reports that track supplier payments and generate 1099 or 1042-S forms. Alternatively, purchase and use Tax1099 partner software to automatically fill out your tax returns using his eFile for 1099-NEC and 1099-MISC forms containing his payment data for 12 calendar months imported. You can also complete it.


It manages your invoice flow and reduces the risk of fraud and errors with over 26,000 automated rules for payments. And performs database checks, verifies her TIN number for suppliers, and checks blacklists, including OFAC sanctions lists. Such software allows selected approvers to approve matching invoices wherever and whenever they want to, online or via mobile app or email.

For efficiency reasons, payments can be planned and made in bulk. It is a Money Services Business (MSB) licensed to issue MTLs in all US states. Is also regulated in the UK. Partnered with many banks, including the Big 4 of JP Morgan Chase, Citibank, Bank of America, and Wells Fargo, to find the best way to process your payments when it comes to paying on time and processing payments through your bank. Find a way. This feature makes a reliable payment solution. It performs real-time payment reconciliation for batches across multiple payment methods and currencies. It may also remit payment processing fees to the payee if desired and permitted by the contract. This automatic adjustment feature can reduce month-end closes by up to 25% during the accounting cycle.

4 – Focus on cash flow

Companies with the right priorities master cash flow management. They forecast short- and long-term business plans and budget cash flows. These companies keep track of cash, overdue receivables from the receivables cycle, vendor balances, and supplier invoice due dates to facilitate collections and pay on time to get early payment discounts when possible. I’m here. They know when they need financing to increase their financial flexibility and pay their bills. We also use discounted cash flow analysis and project rankings to analyze potential projects to determine if the benefits are justified.

5 – Has strong internal controls

Organizations must implement and maintain a strong internal control system. One of the best practices for accounting department structure is the separation of duties. Separation of duties means that at least two different employees handle cash and keep transactions off the books.

In very small companies, it can be difficult to achieve the necessary separation of duties to prevent fraud. In this case, small business owners control the approval of invoices and the receipt and payment of money. As companies grow and employ more employees, they can strengthen their internal control procedures. COSO, the Treadway Commission’s Board of Sponsoring Organizations, updated the Internal Controls – Integration Framework in May 2013.

In the COSO framework, the internal control system includes five built-in components:

  1. controlled environment
  2. risk assessment
  3. surveillance activities
  4. Telecommunications
  5. surveillance activities
From the About COSO page:

“COSO was established in 1985 to support the National Fraudulent Financial Reporting Commission, an independent private sector effort to investigate causes that may lead to fraudulent financial reporting. Recommendations are also made for people, the SEC and other regulators, and educational institutions.

The National Commission was co-sponsored by five major US-based professional organizations:

American Institute of Certified Public Accountants (AAA), American Institute of Certified Public Accountants (AICPA), Financial Executives Institute (FEI), Institute of Internal Auditors (IIA), American Institute of Accountants (now the Institute of Management Accountants [IMA]). Fully independent from individual sponsoring organizations

Implementing internal controls is part of Enterprise Risk Management (ERM) and is also featured in COSO’s 2017 update, Enterprise Risk Management – ​​Integrating Strategy and Performance.

In public companies, Section 302 of the Sarbanes-Oxley Act requires the CEO and CFO to submit quarterly attestations of the adequacy of internal controls and the fairness of financial statement presentation and disclosure. These business leaders are also responsible for implementing SOX Clause 404 annually through internal control assessment and testing. Note the difference between Sections 302 and 404 of the Sarbanes-Oxley Act.

Best practices in accounting policies and procedures include appropriate internal controls. This includes establishing internal guidelines for business travel, mandatory vehicle subsidies and company vehicles, and reimbursement of employee expenses. Company policy also establishes internal control procedures for specific approval levels, invoice approvers, and other critical business issues.

6 – Hire a CPA firm

Startups can choose between a cash basis and an accrual basis. While it may make sense to start with accrual accounting under GAAP accounting standards, cash accounting may be more appropriate for tax purposes. Please contact a certified public accountant’s office. At some point, you’ll want an accounting firm to prepare your business tax returns and (albeit to a lesser extent and fee) review or audit your company’s financial statements.

Accounting firms not only help companies (individuals and foundations alike) prepare for income tax, but they also advise on tax strategies.

In an external audit, a CPA firm tests a sample of the underlying accounting records, makes inquiries, submits balance confirmation requests, recalculates, reviews the adequacy of tracking and analysis, and analyzes GAAP compliance. Run

7 – Consider hiring a cum CFO

If your company is starting to grow with high growth potential, but you can’t afford to hire her CFO advisor full-time with the controller, consider hiring her CFO part-time, please. The Part CFO will work for a limited number of weeks or months to help develop strategic and business plans with a cash flow model, support decision-making, raise funds, and conduct her diligence on M&A transactions. You may work hours. The non-executive CFO can prepare financial reports and financial highlights for the board of directors, subject to review and approval by the CEO.

Part CFOs can also view underlying transactions such as financial statements, general ledger, journal entries, and account reconciliations for greater accuracy. (This is not considered an independent external review or audit.)

The part-time CFO trains and mentors other employees in the accounting department to assist in their future professional development. The non-executive CFO can direct and guide other finance staff in developing metrics analysis to better understand the company’s financial health.

A fractional CFO’s salary is structured as a commission or hourly rate, and typically he ranges from $250 to $500 per hour. The company can determine the number and scope of the part CFO’s work to stay within budget.

Final Thoughts

Establishing the best accounting practices to properly structure your accounting and business finances is key to solving potential accounting problems. To prepare for current bank loans, future M&A acquisitions, or IPOs (with appropriate market conditions, valuation, and qualifications), establish good internal controls and effective accounting practices. Results according to GAAP.

You do not want to be delayed in correcting accounting errors. In the income statement, balance sheet, and cash flow statement. Due to inadequate software systems for accounting and corporate finance.  Consider outsourcing payroll, accounting, and financial services as they add value at a reasonable price.

When you use  AP automation and global partner billing software with your ERP or accounting software, your business:
  1. Dramatically increase efficiency by eliminating time-consuming manual labor
  2. Cut costs in the process of finding your business profit
  3. Reduce the risk of fraud and errors
  4. Global tax and regulatory compliance
  5. Have a financial software solution to suit the size of your growing business
  6. More time to analyze financial data and make a valuable contribution to the business.

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