When I trained as a Chartered Accountant, there were no computers on the desks, in fact the only things left out were the telephones and the ash trays. We prepared accounts using pen and paper, cut and paste meant literally getting out a pair of scissors and some sellotape. Times have changed, but all too often I see antiquated accounting.
If you are still using manual records or an old version of Sage; there is a better way, a way that could reduce the time you spend bookkeeping, and improve the information you get from your accounts.
How is this possible?
By automating your accounting so that computers do as much of the heavy lifting as possible. Specifically you can do this:
- Get your bank to download all your transactions into your accounts each day.
- Because your bank and your accounts are linked you should not have to tick across reconciling your bank looking for input errors.
- The software should automatically match money you have received to your invoices raised.
- Invoices raised should be emailed by your system to your customers, and your ledgers be automatically updated.
- A cloud based system has the advantages that you are not responsible for making updates or backing data up but you can access your accounts when ever you are connected to the internet.
- Your system should be intuitive and easy to use.
- You should be able to see well formatted management accounts and drill down by clicking on the data to find out what’s going on in detail.
We use the cloud based system Xero (www.xero.com) to help deliver this to our clients (other systems are available!). If you want to save time for yourself, save money by making your staff more efficient, or just want better information have a look at updating your accounting system. If you want to talk it through with me (no obligation) you know where I am.