Accounting routines is something you’ve probably heard about. The reason we talk about routines in accounting is apparent – it’s something you’ve got to do on daily basis, something you got to do with some form of discipline and routine in itself. I would say that there’s very little creativity in accounting itself, as it’s something that has strict rules and basic fundamental structure that needs to be followed. As such there are routines that you’re strongly advised to take a habit and applying to your everyday business life. 

Some routines I find useful to have in my everyday accounting (note that there may be other procedures you may find useful in your practice – nothing is set in stone sort of say when it comes to finding your own):

• Making entries should first off be an everyday thing and more importantly a regular thing you do as soon as the transaction has taken place. The reason for it should be obvious – what’s done is done and not forgotten whilst something you consider doing later on may get neglected all together. I strongly suggest having this time dedicated on daily basis or as often as you need. Also, collect some place safe and still visible all your documents you need to make accounting entries based upon.
• I cannot stress this enough – have documents for all your accounting entries! It’s very often forgotten or simply overlooked so that people just see the accounting entry. It’s like they’re saying, “I’ve got the entry done so the accounts are accurate and up-to-date.” Whilst that’s obviously also important one must never overlook one simple question – “What was this entry based upon? Why was it done?” – and yet it’s often done so because one entry with it’s debits and credits does not say on which grounds the entry was done, who authorized it, what was received or given for this etc.
• Reconciling certain statements to accounts on your balance sheet or income statement is quite pointless as per some people. They ask why something like this should be done if I’m making all entries into my accounts on regular basis. What I’m always saying as a response is that with reconciliations you always ought to have some sense and reasonability. Obviously reconciling all the detailed listings for the accounts isn’t what’s meant here, but more making sure that the accounts you’re making most entries into or accounts including numerous items which every now and then could be checked like prepaid expenses (i.e. making sure that all the amounts recognized shouldn’t have been expensed already for an example).
• One of the things I’ve found extremely useful is keeping a list somewhere of all your expenses made and to tick down those you’ve received an invoice for. This way you know which expenses should be recognized in your accounts and whether you’ve got the document for it or not. Point being in case you don’t have the document (invoice) yet you should accrue for the expense anyhow because this expense relates to this period at hand, however on your balance sheet it’s not under payables to suppliers, but accrued expenses.

Routines are something you ought to have and do on regular basis for a reason – to ensure consistency and compliance, to ensure accuracy of the financial information being presented and to avoid any inefficiencies or simply wasting time. Accounting routines listed above are the most common ones and almost always there, however, keep in mind that you’re more than expected to come up with your very own procedures that help you in keeping all things on track. There’s no right or wrong answer in how you make sure you’ve got your business’ accounting sorted as long as it’s done on time, in compliance with regulations and it’s giving a true and fair view of your company’s financial performance. Everything else is entirely up to you on how you ensure this. In that sense I guess you could say that accounting is creative a bit at least.