Still keeping manual bookkeeping records? Consider the alternatives...

Are you a start up or a small business keeping manual bookkeeping records?  Here's why you should consider the alternatives.

There are three reasons why you should consider using a software package or a cloud based solution to maintain your accounting records from the very beginning of the life of your business.  A very simple example, payment of a supplier invoice from the company bank account, will help illustrate the first two reasons.

Double entry which is the basis of bookkeeping means there are two entries for every transaction.  In this example payment of a supplier invoice from the company bank account needs an entry in both the bank record and in the supplier account.   With software you only need to enter the details of the transaction once and both bank and supplier records will automatically be updated.  If you are keeping handwritten ledgers or records on excel the transaction will need to be entered twice, once in your bank ledger and once in your supplier ledger.  So the first reason to use software is that it is quicker!  The second reason is that there is no danger of entering the transaction in only one ledger and forgetting the other so overall the records are more likely to be accurate with a “clean” trial balance for your accountant to produce your accounts at the year end.   Incidentally this “cleaner” result should be reflected in your annual accountancy fee!

The third and most important reason however for using a software package or a cloud based solution to maintain your accounting records is that to run your business you need information on how it is performing.  Even with well-kept manual records, it is not possible to produce reports such as Aged Debtors, Aged Creditors, Profit and Loss and Balance Sheet quickly. Software will deliver these reports at a click of a mouse.  With these in place it is possible from the outset to produce monthly reports which will enable you to monitor your business performance and develop your strategy for growth.

Having finance systems in place will help give your business the best possible start. 

-----------------------------------------------------------------------------------------------------------------------

For advice and assistance in this and other accountancy related matters please contact Jane Beresford on 07847319120 or jane@j-baccsolutions.co.uk