Have you ever wondered how bookkeeping done well can help your small business? Well bookkeeping and financial data are crucial to managing your business. So here’s some great bookkeeping tips.
As a small business when things are tight (and even when they are not), it’s important that you keep on top of what comes in and what is going out. Think about the time you are spending keeping your records on spreadsheets, what else could you be doing with your time? Even then the spreadsheet may not give you the information you want and need.
As a small business, bookkeeping is something you need to be keeping on top of. This is because without accurate bookkeeping you are either going to:
- Use something else that may be even more time-consuming.
- Make business decisions blindly or listen to your gut which is not fact-based
- Or not make a decision at all which could put your business in jeopardy.
Any of these options are not the best!
Having a cloud-based bookkeeping solution whereby you have up-to-date information will serve you much better. Bookkeeping is the process of keeping good quality financial records of your business performance which gives you high-quality data.
Many businesses are still using desktop software such as SAGE50 but the benefits of cloud software are now too many to simply ignore.
Why regular bookkeeping is important.
Bookkeeping software can really help your small business if it is done regularly. As a business owner the minimum you deserve is accurate data to help you make the best decisions.
That’s where cloud software comes in.
It takes a bit of learning when you are starting. You may need some training. But done correctly and frequently it will give you the information you need to make your business decisions. It will also allow your accountant to serve you best and help you and in the long run it will save you time.
Once you have the tools doing your bookkeeping regularly will certainly become easier and will mean you can get relevant information. You will be able to :
- Keep on top of your cash flow
- Keep track of overall profitability
- Understand which parts of your business is performing the best
- Plan and budget for tax and VAT liabilities
- Complete VAT Returns quarterly without fuss
- See what money is in the bank
- Keep tabs on who owes you money
You could of course choose not to do the bookkeeping yourself and instead outsource this function. We are helping many clients with their bookkeeping and so allowing them to concentrate on doing what they are best at within their business.
You can find more information here
What software to choose
There are many software solutions out there to help your small business and getting the correct one will be important for you.
However, these are the key features that you should look out for:
- Secure cloud storage
Cloud-based software automatically updates and backs up data across multiple cloud servers.
- Direct Bank integration
The software will automatically connect to your bank if you use online banking which saves you time entering bank data.
- Digital record capture
You can use a scanner or the camera on your phone to take pictures of receipts to keep track of your expenses
- Multi-gadget functionality
You should be able to access your software and records from any gadget and from anywhere so long as you have good internet access.
You can connect with other software such as your EPOS till in the shop or Apps to chase debtors like Chaser
- Tax compliant
The software you choose must be compliant with HMRC regulations such as MTD
Once you have put budgets in the software, you should be able to run reports comparing Actual against Budget. This will help you keep tabs on your business performance.
Here’s a basic comparison of the different software from Business Accounting Basics to help you decide.
If you are still not sure if book-keeping software is for you, have a look at our cloud accounting page which gives you more information. If you would like to talk to a human to help you decide, there’s a diagnostic form you should complete. We’d love to hear from you.
Having a bookkeeping software will change the way you look at your business information so don’t delay.