Top 3 Dos And Don’ts When Choosing And Using Accounting Software:
Most business owners set up
their business for the love of the
business, product or service they
provide. Accounting is not top of
mind when setting up a business
but having and maintaining
accurate accounts is vital.
It’s vital to understand your
cashflow. It’s vital to know if you’re
making a profit or loss.
Good accounting practices take
time. Using accounting software can help business
owners get a handle on their finances simply and with
minimum effort.
Here Are My Top 3 Dos And Don’ts When
Choosing And Using Accounting Software:
Dos
1. Do Review Your Financial Needs
Before you undertake a purchase of an accounting
software package, it’s important to understand what
your financial needs are. Do you need stock control,
payroll, multi-user access, estimator or web access?
Determining your needs will help you choose the right
system for your company.
2. Do Get Your Team Involved
One of the main reasons for using accounting software
is that it is a great way to maintain accurate records.
So you should plan an effective transition period from
a manual system to a software system. For example,
perhaps you can assign one staff member to upload
your bank statements and cash payment records. These
will complement the hard copies that are kept in the
traditional way. Over time, your staff will become familiar
with the new system and will use it before using the old,
manual method.
3. Do Think About Your Growing Business
No-one starts a business to keep it at the same level
as when it’s started. As you grow your business, your
accounting needs change. When you’re choosing
accounting software, look at the big picture of how you’re
growing and what you might need. Your software should
be scalable so take a look at the additional modules that
the software has to offer. You may not need it now but
it’s good to know that the provider has it ready when you
are.
Don’ts
1. Don’t Go For The Cheapest Option
Getting a good price on your accounting software is
not a determinant that it is right for you. After you’ve
done your review, you’ll know what works for you and
what doesn’t. Only then should you decide on software.
Remember accounting software is meant to make your
life painless. Think affordable rather than cheapest.
2. Don’t Do It Alone
Choosing an accounting software system should be
a decision made for the long-term. It will involve a
transition period aswell as training, both of which are
resource intensive.
Involve your accountant and ask for their advice. They
won’t be offended if you decide to use accounting
software. Quite the opposite. It will make sharing
documents and figures with your accountant more
accessible.
Here at AG Associates, we recommend Sage Software.
We help train our clients on the best use of the software
for each individual’s use. Talking to your accountant and
getting them involved will save you money in the long
term.
3. Don’t Leave It All On The Computer
Accounting software is one of the best business
investments you’ll make. However, you should make the
best use of the data for determining KPIs, monitoring
cash-flow and debtor days. While the information is
readily available, you should make sure to look and
analyse it on a regular basis.
If you would like further information on any of the above,
we would be delighted to speak with you.