Ways To Improve Your Bookkeeping
It’s not enough to want to change the world with your product, or even become the best in your field. You have to make sure that you can handle the simple transactions that are going to keep your business afloat day-by-day.
Choose the best software
You need the right tools for any job. When it comes to bookkeeping, it’s no different. Right now, we are living in a great time for apps and software. Being able to access some of the best services and applications ever designed from your smartphone or tablet means that businesses of any size can use the best accounting software out there.
Automate your record keeping
Artificial intelligence is a few years away yet, but with a few simple steps, you can already let your computers and the cloud take care of your business automation. Using tools such as Zapier, you can connect apps between each other, meaning that when your invoices are paid you can receive notifications, log data entry and even send reports directly to your accountants without even opening your laptop.
Get it right from the start
Setting up your bookkeeping software, processes and systems the first time around isn’t too difficult. If you have an expert advisor looking over it and helping you sort everything out, it won’t take away weeks of your life and give you grey hairs. But you know what will?
Be pro-active
You want to make sure that you aren’t in a scramble to get things ready and have your financial records in order when tax-time comes around. Being pro-active in your bookkeeping is the best way to ensure that you stay organised and you don’t miss any crucial dates, times or data.
Things You Should Never Ask Your Accountant
Whether you’re already in business or planning to become a small-business owner, one of your best resources may come from an unexpected source. It’s not your first hire, your personal assistant or even your lawyer. Rather, it’s the person who balances your budget, prepares your taxes and P&L statements, and helps you leverage technology to gain efficiency: your accountant.
Given the breadth of experience and wealth of knowledge gained from working with multiple businesses, a good accountant has the potential to be both a mentor and a partner―if you let them.
How to Choose the Right Accountant
Your accountant is potentially your most trusted business advisor. And when it comes to business, knowing whom to trust and getting the financial side of things right from the beginning is imperative.
Never ask your accountant to do anything that can be automated.
Some entrepreneurs still ask their accountants to manage their checkbook―to manually process payments, receipts and payroll transactions. This is an easily automated task!
Never ask your accountant to tell you how your business is performing.
Why? Because you should already know! Some business owners abdicate their role of running the business instead of clearly delegating specific tasks. The key difference here is responsibility
Don’t have a bookkeeper!
If I do my own books, I will be close to my cashflow.
Of course, as a business owner you want to feel close to what is going on in your business this is completely understandable more than that it’s imperative if you are to make timely decisions to ensure your business moves in the right direction. Does this mean you have to do the nitty gritty of the bookkeeping yourself? I don’t think so, with a competent bookkeeper dealing with the day to day stuff you, as the business owner can get on with running the business. You should be reading your Financial Statements and the Accounts Receivable report, not preparing them. Your time and skills are too valuable to be doing work that others can do and probably do more efficiently because it is their area of expertise. The bookkeeper is also a second pair of eyes and they will often pick up on things that would otherwise be overlooked, for example that Direct Debit that is going out of the bank each month for software you stopped using some time ago.
You feel uncomfortable sharing confidential information
This is only natural, it’s private right? Well not exactly, if you are a limited company you will be required to file accounts at Companies House, and these can be viewed by anyone. So, this is something the business owner needs to overcome; especially if the business is a limited company. As a business owner you simply cannot maximize the value in your business without a small team of trusted advisors. Trusted being the key word here, your team should start with a qualified bookkeeper and a good accountant both of whom abide by a Code of Professional Ethics ensuring complete confidentiality.
You think they’re expensive.
Actually, a qualified bookkeeper worth their salt will be able to offer you a package deal this how Bean Counters does things, a simple scale of fees based on the number of transactions so you don’t get any nasty surprises when you received the bill. In fact, in many cases as an experienced qualified bookkeeper I will be able to identify efficiency savings in other areas of your business, which, in some cases, could equate to more than the fees. A second pair of eyes looking out for your best interests, someone to bounce ideas off, books up to date, no pawing over paperwork at the weekend when you should be relaxing and recharging your batteries. Not as expensive as you think!
You don’t know how to find a good one.
This can be problem especially because anybody can call themselves a bookkeeper. This is so true, and it is very important that you do some background checks before taking on a bookkeeper. At can often not become apparent that there is something wrong until the accountant starts to do the year end accounts and by then there could be a big bill to put things right. So how do you find a good one? There are several professional bodies offering accreditation to bookkeepers, these professional bodies also ensure that their members follow strict guidelines, have the appropriate insurances and complete ongoing training to ensure they are offering up to date advice, especially important where tax matters are concerned as these rules are changing all the time.
Why DIY bookkeeping and accounting could hurt your business
have been noticing a common trap that some business owners are falling into. Some accounting and bookkeeping software advertise themselves as providing the complete package for business owners – allowing them to manage their books and handle their accounts on their own.
Why DIY Bookkeeping and Accounting Solutions may not be such a great idea.
While a DIY solution may sound like a good opportunity to relieve bookkeeping and accounting costs on the business, we are finding it to have the opposite effect on business owners come year end. Why?
One prime example is a lack of guidance throughout the year. When you are working with a bookkeeper or accountant, a simple mistake on your end can be quickly corrected to avoid serious damage. However, if you are flying solo, a small mistake at the beginning of the year that is repeated and not identified early can leave you in a mess.
So what do I do?
have a simple solution that will work for you and make the year-end work quicker and more cost-effective. We work with business owners like you on a quarterly and monthly basis doing a health check on the software you are using, guiding you in processing your books or providing the training that you need to run your books effectively and worry-free!
GST mistakes are the most common type of mistake we find business owners making. Click the link below to learn more about how to avoid the most common GST mistakes people make.
Recommended Apps for Accountants & Bookkeepers
It’s amazing to think that just six years ago this page would have been unnecessary. Back then, most of us were working in desktop accounting software. I would have had no apps to recommend!
Since then, an incredible thing has happened. An “ecosystem” of hundreds of cloud accounting apps has sprung up, and more and more keep being added every year.
I often get asked by other accountants and bookkeepers for recommendations, so I started keeping this list. I hope you find it useful!
Most of these apps I’ve used personally. A few of these apps I’ve tested enough to be able to recommend, but haven’t yet deployed “in the field”. Either way, I’m confident that they’ll serve you well as an accountant, bookkeeper, or small business owner.
I’ll keep adding to this list. There are lots of apps out there, so I could use your help! If you have a recommendation,