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Is it time to overhaul your accountancy software and methods?

In today’s fast pace business world, using the best tools is essential. Doing so is the only way to work as smartly as possible, and, therefore, keep pace with your competitors.

Most business owners, whether they are in Bebington or Chester, understand this. As a result, they work hard to provide their workers with the latest technology and equipment.

Why business owners tend to neglect their accounts

Despite this, some areas of the business can be forgotten and neglected. Accountancy is such an area. Many firms have not reviewed how they keep their accounts for a decade or more. As a result, they are still using outdated accountancy software and apps.

The problem is that a lot of company owners do not see keeping their accounts up to date as a core business function. This is primarily because it is not a process that is directly involved in producing the goods and services a firm sells. As a result, keeping tidy accounts is a long way down the priority list for many company owners. While this is understandable to an extent, it is not wise to look at things in this way.

Companies that manage their accounts effectively are more profitable

Studies show that those companies that manage their accounts more effectively are able to make bigger profits. They are able to use their data to spot cash flow issues early, model new business opportunities and better understand which areas are making them the best profit.

Whether you’re in the thick of city life as a Chester business, or based somewhere more peripheral like Bebington, updating your accounts on a daily basis is extremely important. For example, a cash flow report that uses incomplete data is practically useless. You cannot see gaps in your cash flow coming if you are a week behind on entering your outgoings.

How to review your accounts procedures

If you haven’t updated your accountancy procedures, software and apps for several years, we urge you to do so. It will not take you more than a few hours to carry out an audit of how you are currently maintaining your accounts data.

You need to look at what your current processes are. List the tools that you use to gather and update your accounts data, and work out how much time is spent making each entry.

At this stage, you are likely to find that you are entering the same data in more than one database. Keep an eye on this, because eliminating double entry scenarios is the fastest way to make your accountancy processes faster.

You also need to identify holes in your current processes. Look for situations where information your business needs is not being recorded, or is being entered late. Your aim is to close these gaps, so that your accounts data is as current as possible. The more current the information you use to produce your accountancy reports, the more accurate they will be.

With the North West such a burgeoning business area, being based in Bebington or Chester is exciting. Once you have carried out your audit, and identified the issues you will be able to update your procedures, you will be able to reap the location’s fullest benefits.

Posted by Louise
October 31, 2016

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