Average Hours Spent on Bookkeeping Tasks: Tips to Streamline Your Workflow

As a small business owner or a freelancer, you may have to wear many hats, including that of a bookkeeper. Bookkeeping is essential to running a business, but it can be time-consuming and overwhelming, especially if you're not a numbers person. In this article, we'll explore the average hours spent on bookkeeping tasks and provide tips to streamline your workflow.

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Introduction

Bookkeeping is the process of recording and organizing financial transactions, including sales, expenses, and payments. It's a critical part of running a business and keeping track of your finances. However, bookkeeping can be time-consuming, especially if you're doing it manually. According to a study by TD Bank, small business owners spend an average of 5 hours per week on bookkeeping tasks.

Average Hours Spent on Bookkeeping Tasks

Bookkeeping tasks can be divided into two categories: daily/weekly tasks and monthly/yearly tasks. Here's a breakdown of the average time spent on each task:

Daily/Weekly Tasks

1. Recording transactions: Small business owners spend an average of 1.3 hours weekly recording transactions.
2. Invoicing: Small business owners spend an average of 1.2 hours weekly on invoicing.
3. Bank reconciliations: Small business owners spend an average of 1.1 hours weekly on bank reconciliations.
4. Payroll: Small business owners spend an average of 0.9 hours weekly on the payroll.

Monthly/Yearly Tasks

1. Monthly financial statements: Small business owners spend an average of 1.4 hours monthly on monthly financial statements.
2. Annual tax preparation: Small business owners spend an average of 6.8 hours yearly on yearly tax preparation.

Tips to Streamline Your Workflow

Bookkeeping is an essential part of running a business, but it doesn't have to be a time-consuming and overwhelming task. Here are some tips to streamline your workflow and reduce the time you spend on bookkeeping tasks:

Use Accounting Software

Accounting software can automate many bookkeeping tasks, such as invoicing, bank reconciliations, and payroll. This can save you a significant amount of time and reduce the risk of errors. Popular accounting software options include NeuBookKeeping, QuickBooks, Xero, and FreshBooks.

Organize Your Financial Records

Keeping your financial records organized can save you time and reduce the risk of errors. Use a filing system to store receipts, invoices, and other financial documents. Create separate folders for different categories, such as sales, expenses, and taxes.

Automate Invoicing

Automating your invoicing process can save you time and ensure that your invoices are sent out on time. Many accounting software options offer invoicing features, allowing you to create and send invoices with just a few clicks.

Outsource Bookkeeping Tasks

Outsourcing bookkeeping tasks can save you time and reduce the risk of errors. Consider hiring a bookkeeper or outsourcing bookkeeping tasks to a third-party service provider. This can free up your time to focus on other aspects of your business.

Schedule Regular Bookkeeping Time

Set aside regular time for bookkeeping tasks, such as recording transactions and reconciling bank accounts. This can help you stay on top of your finances and reduce the risk of errors.

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Summary

Bookkeeping is an essential part of running a business, but it can be time-consuming and overwhelming. Small business owners spend an average of 5 hours per week on bookkeeping tasks. By using accounting software, organizing your financial records, automating invoicing, outsourcing bookkeeping tasks, and scheduling regular bookkeeping time, you can streamline your workflow and reduce the time you spend.

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