Many small business owners do their own bookkeeping and accounting.
This can be quite simple when you’re a new business and you don’t have a lot of staff or a particularly high turnover.
Indeed, someone who is self-employed and who deals with just a few clients may be able to get by with bank statements and a spreadsheet.
However, the bigger your business gets, the more important it becomes to have a systematic approach to bookkeeping.
Using the right software from day one will help to ensure that your accounts are always in order and that you don’t get a nasty surprise from the tax man.
Choosing an Accounting Package
There are many different accounting packages out there. Some software is free, some costs money.
If you’re quite tech-savvy and are happy to have your accounts held on your own computer, then GNUCash is a good option.
This is free, open source software that can be used for both small and medium-sized businesses.
Be sure to back up your computer regularly though, because the tax man does not have a sense of humour about data loss.
If you want to have your accounts stored in the cloud, so you don’t have to worry so much about backups, or updating software, then there are numerous options.
QuickBooks, Sage, Xero, and KashFlow are some of the more popular options on the market at the moment.
These companies offer packages that vary in price depending on the size of your business.
This means that you can start using them when you’re small and that the features will scale as your business does.
For the average business, it doesn’t really matter which package you choose, since all of the major companies offer robust bookkeeping with the standard features that you would need.
If you deal in multiple currencies or want to have integration with a specific bank account to automate a lot of your reports then that is something that you will need to take into account.
It’s a good idea to sign up to a free trial with a few different packages, and see which ones offer the best features and are also easy to use.
Apps Don’t Replace Accountants
Be aware, though, that these apps don’t replace having a good accountant. They can, however, make the life of your accountant a lot easier.
If you’re able to hand your accountant a report generated by an app that is well presented and covers all of your income and outgoings in a clear and concise way then they will be able to do their job much more quickly.
It’s worth paying a nominal monthly fee to get access to software that will let you keep track of your day to day business finances in a systematic manner.
It will save you the stress of taking a stack of receipts to a flustered accountant just before the quarterly or yearly deadline!
If you are looking for a blend of truly personal service and expertise, please call us today on 03 9510 2120 or contact us through our website https://numberspro.com.au/contact-us/