You probably started your own business because you wanted to pursue your passion, be your own boss, work your own hours, call the shots and of course make lots of money. Money makes the world go around as the saying goes, and it is most definitely at the heart of businesses, large or small. Cash is king is another well known saying. More to the point cashflow is king to a small business. Without cash flowing through your company, you can’t survive let alone grow. So if you were asked at this moment in time, exactly where your company stood with regards to it’s finances, would you be able to say yes, I absolutely do?
Keeping your books
How you keep your books is key to having the full picture on all matters financial and knowing exactly where your business stands. The question is, which one are you using?
Excel
Excel can help you keep track of your finances if your business isn’t too complicated, however you could end up putting in more time and effort than it’s worth. That is of course, unless your an Excel Whizz who can set everything up with templates and formula’s. You have to be aware that you are also open to entry errors and that the only form of “automation” comes from your formula’s and macros.
You also have sharing issues with the workbooks you are using and unless they are stored in something like Dropbox or Google Drive, you end up having to email a version, which once it has left you, isn’t up to date anymore.
Desktop software
Using desktop software is still widely used and companies like the fact that you don’t have any ongoing fees, the data is stored on your own PC or server and it doesn’t require any internet access.
However, you will need to install the software on a dedicated laptop or PC and ensure you install any updates. You also need to ensure you back up your data and run the risk of losing everything, should you lose your PC or laptop, which is why it’s a good idea to keep more than one copy of your backup or keep it in something such as Dropbox.
Finally, data sharing is difficult as you are working with one PC and one set of data, meaning your not working in real time.
Cloud accounting
Cloud accounting software provides similar functionality as destop versions but with a few major differences. Firstly, cloud software is held on secure remote secure servers which are accessed via the internet, and certainly with companies such as Xero and QuickBooks, has world class security. It also means you no longer have to worry about backups or upgrades as you are always on the latest version.
You can have multi-user access with everyone looking at the same data, making it easy to collaborate with you team, Accountant or Bookkeeper. It’s also possible to control the access of each user so they only see what you want them to. There’s no waiting to get into the office to look at your books, if you have access to the internet you can access your data, in real time.
If you take into account that you can invoice in seconds and send electronically to your customer, add payment methods for online payments and bolt on hundreds of apps to create a system which fits your business perfectly, you’ll wonder why you haven’t moved to the cloud sooner.
Whether your looking to outsource your bookkeeping, or make use of the best cloud software available, we can help with bespoke bookkeeping packages where you choose what you pay, or with reduced rate software subscriptions for your accounts, expense management or credit control.
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