Computerising the small business
Many small businesses will be using a mix of Excel and Word to run the accounts, relying on the accountant to sort everything out at the end of the year. It’s difficult to understand exactly where the money is going, what tax is due and which projects are making a profit. Gut feel is often used, along with long nights of keeping all of the spreadsheets and notebooks in sync. There has to be a better way !
The good news is that there is a better way – and it’s a relatively cheap step to take. There are a number of cloud based systems available which will help you manage your books – making the accountant’s job easier at the end of the year. They will then be able to concentrate on ensuring that you are running in a tax efficient manner, rather than just making sure that everything is about right.
The new cloud based systems such as Xero, QuickBooks, FreeAgent and Sage 50cloud are all examples of the systems that could be implemented. Each of these systems has its strength and is suited to different businesses, depending on the skillset within the business and the business type.
Other businesses may need amore complex system, more of which below …
The first step to using a computer efficiently is to use some software to manage the finances. Whilst a subject that most business owners don’t want to think about ( they want to concentrate on building the business ), it’s a key first step. Get the finance system automated, then you will know exactly who you owe money to, and when that money is due. Never forget to invoice another customer, and know very easily which invoices are overdue. Some systems will even chase the overdue invoices for you automatically. All this for about £30 / month.
The new cloud systems are also connected systems. It’s possible to get other systems to send information to the finance systems automatically. Maybe you have a system that manages a manufacturing process. Once a batch has been despatched, then the manufacturing system will send a signal to the finance system. It will then automatically invoice the customer. The example in a manufacturing process is easy to understand, however it’s possible to automate many businesses from service companies through to construction businesses. Call us on 01745 606 161 or email firstname.lastname@example.org to find out more.
Bigger and more complex businesses
Bigger businesses, or those with a more complex process, will benefit from an integrated solution. The system that manages the business process is the same system that manages the finance processes, bringing even more benefits of automation to the business. All aspects of the business are immediately updated when one transaction is made (for example a widget is purchased – then all relevant parts of the system know about it). More information is available here.
Your next steps
It’s very important to ensure that you have the right system to suit your business, and that the system is implemented & used properly. Get these stages wrong, and the system will never work well – the company will battle with the system and may even abandon it. Get the implementation right, and you will buy yourself time to spend on the business ( or at home ! ) – as well as knowing exactly where you are with any job that you are running.
Contact Principality Consulting on 01745 606 161 or email@example.com – we can help you to understand the benefits to your business, and even maybe find some funding to ensure that the system is implemented properly.