Q: How do you do your bookkeeping at the moment?
A: I list all the transactions in a spreadsheet and send it to my accountants. They do what they do and send it back to me but it’s always full of errors. So I end up checking my own work and I wonder what I’m paying them for!
Now, some people just won’t change. You can lead a horse to water etc. But in this case the business owner and the accountant are both doing it wrong and should both change the way they work.
Put simply – all businesses should be using accounting software. Why?
Because accounting software:
- Has never been cheaper or more accessible
- Simplifies your bookkeeping, makes it cheaper and (ideally) paper-free
- Connects your business with your accountant
- Produces useful financial information you can act on to improve profits and cashflow
- Makes compliance easier and cheaper
Although bookkeeping is essential, much of it should sit below the surface, ticking over like a well-oiled machine, producing useful financial information before it’s needed.
Most businesses have similar transactions year-in, year-out and they should be dealt with routinely letting technology deal with as much of it as possible.
Your objective as a business owner is to make sustainable, growing profits and your finance function should be a solid and scalable foundation for those profits.
And if either you or your accountant is still wedded to spreadsheets then you need to press F1!
Putting profit first!