Introducing Lean Bookkeeping for Small Businesses

So I have a Diploma in Lean (Kaizen from Japan) and am a Bookkeeper. Put them together and I am 'The Lean Bookkeeper'. 

"Lean Bookkeeping is an approach to bookkeeping that focuses on efficiency, waste reduction and continuous improvement. It supports 'Lean Accounting' which is becoming popular.

In the context of bookkeeping, Lean principles can be applied to streamline processes, increase accuracy, and reduce the time and effort required for bookkeeping tasks. 

Here are some key principles and practices associated with Lean Bookkeeping:

Value identification: Lean Bookkeepers identify the activities that add value to the bookkeeping process and focus their efforts on these.

Waste elimination: Waste, in lean, is defined as any activity that consumes resources but does not add value. Examples of waste in bookkeeping include unnecessary data entry, excessive documentation and inefficient workflows. 

Standardisation: Standardising bookkeeping processes helps minimise errors, reduce variability and improve consistency. Standardised processes create clear guidelines for bookkeeping tasks, making them more efficient and less prone to mistakes. In summary, it's a no brainer to standardise where possible. Think bank rules, GL coding clarity, proper setup on accounts such as finance and year end report preparation.

Continuous improvement: Lean Bookkeeping is a continuous improvement approach, which means it encourages ongoing evaluation and enhancement of bookkeeping processes. There is a growth mindset aspect to continuous improvement, where one is always on the look out for opportunities to improve and thus help the client.

Technology utilisation: This goes without saying but I will add that lean bookkeeping is technology smart. This means using the right level of tech in the right way and knowing how to train and engage staff to use the technology correctly. Using key apps such as Xero, Next Minute, iPayroll etc helps this. 

Visual management (Kanban): Visual management techniques, such as using visual cues, charts, and dashboards enhance bookkeeping. They are great in client emails with screen shots and process documents. Perhaps I should have used visuals in this post!

Cross-functional collaboration: This is a fancy word for not being siloed. Lean bookkeepers collaborate with accountants, business owners and staff. They work in the middle space and align the admin details with the company vision and strategy. Utilising this middle space is essential for small business success in an info heavy world.

Implementing Lean Bookkeeping principles can help businesses streamline their financial processes, improve data accuracy and enhance decision-making capabilities. By eliminating waste and continuously improving processes, small businesses can achieve leaner and more effective bookkeeping practices.

Get in touch today to hire me as your Xero Lean Bookkeeper.  Free 45 min coffee.