Are you still using pen and paper or Excel to record your business transactions?!
Well, it’s time to step into the now and start thinking about an automated approach to your financial record keeping.
If you’re like most small business owners you don’t have a clue how to do this. And, the thought of learning how just sends your mind into a spin, which is pretty much reflective of the fast paced world we live in.
“Time is more valuable than money”
One indisputable fact is that time is more valuable than money. It may take many of you a bit longer to appreciate that, however if your attempts at account keeping is nibbling away at your time then you’re devaluing yourself and your business.
Up until now you might have survived quite well by using Excel or a cashbook, however the efficacy of this, you’ll soon learn, is very short lived.
Unfortunately some business owners only realise this when they are already behind with their periodic obligations such as GST, BAS, superannuation, and payroll duties.
“Don’t wait until you’re behind with your periodic obligations”
Once this happens, the associated costs to get back on track creep up and tend to be more than if you had used accounting software at an earlier stage.
To give you an idea of what you’ll need here’s a list of my top 3 cloud accounting software picks:
5 years ago, you would have asked “Who?”. Xero is definitely new but that does not mean inexperienced.
Xero is 100% cloud based and its main strategy is to eliminate inefficiencies faced in the data capturing process and reducing the paper chasing experienced by business owners. The software is highly intuitive in the sense that it can suggest relatively accurate allocations of your income and expenses based on previous transactions.
Plans start from $25 per month for the startup/solopreneur up to $70 per month which can also include team members and unlimited transactions.
Probably was the most popular software out there before the cloud. MYOB offers both a cloud based solution (MYOB Essentials) and one which can be accessed on your desktop (AccountRight). MYOB Essentials plans start from $35 per month and AccountRight from $85 per month.
If you are looking for a simple easy-to-use software, then Quickbooks Online is it. This new kid on the accounting block platform is also 100% cloud based and perfect for the startup but need to look at but lacks the reporting features and automation that Xero and MYOB offer. Plans start from $15 per month.
All the above offer:
- The ability to share access to your latest numbers and check cashflow
- Collaborate with the Accountant (me) and bookkeeper.
- Customize invoices and create invoices online including scheduling when and how invoices are sent (you can do this in your sleep – like literally)
- Bank transactions are linked to the account seamlessly using bank feeds with authority obtained from your bank to do this. This does not mean that bank gives access to your full online banking privileges – just the words and numbers which are “fed” into the software.
- Easy syncing and integration of hundreds of other cloud based apps – but careful consideration is needed prior to making your choice to eliminate compatibility issues.
“Don’t choose on Price – Start on the right foot”
Tempting as it may be to go with the provider that is the cheapest – it is more prudent to choose the provider that meets your needs and can grow with you as and when you do. Changing software can be a really expensive and exhausting process.
Rather than being on the back foot, be a step ahead to avoid the pitfalls of running a growing business. The time you spend burning the midnight oil getting your books up to date in Excel may not be worth it when that time could be better spent on other parts of your business.
I have seen how relaxed my clients become when they hand over the bookkeeping to someone who is qualified to do it for you without the stress. Even better, imagine taking a break from the business knowing the numbers have been taken care of and you can just pick up from where you left off.
Although I’m an cashflow consultant and accountant, I honestly can’t do without a bookkeeper to keep me abreast of what’s happening in my business.
If you need a bookkeeper or know someone who’s been looking for one, feel free to give me a call on 1800 890 114 to discuss your needs.Back to all blogs