Managing your business finances

A short, independent guide to computerising your accounts.

Staying in touch with your business means staying in touch with your accounts

Good financial management isn’t just part of running a business, it’s absolutely vital to its success. That’s because maintaining accurate financial records is one of the most effective ways of staying in touch with the growth of your business - whatever the size and type of your business.

However, it’s often easier said than done, and looking after business finances is one of the most daunting tasks that business owners face. But the benefits far outweigh the negatives, and fortunately, you can now hand over all the hard work to dedicated accounting software that you run on your computer.

So, whatever kind of business you run, it’s never been easier to keep track of your creditors and debtors, generate invoices, calculate VAT, and forecast your income. In fact, the hardest part of it all is often simply deciding just what kind of accounting software you and your business will benefit from the most – and this guide to computerising your accounts can help you do just that.

Computerised accounts - the facts

Did you know that…

· Just 20% of SMEs use software specifically designed for managing their accounts.

· Almost 50% of all SMEs still manage their accounts manually, using pen and paper.

(From http://www.kashflow.co.uk/press-release-issues.asp)

But before you decide to computerise your accounts, it’s a good idea to find out exactly what it can mean to your business – and here are some of the issues that you should be aware of…

FACT: Accounting software can…

· Save you time.

· Ensure your essential tax data is always available.

· Make forecasting and analysing simple.

· Reduce your accountant’s bill.

· Help you produce accurate and professional-looking reports whenever you need them.

· Make it easy to produce VAT reports.

· Help you remember significant financial events.

BUT: It can also mean…

· A higher cost initially, as a computerised system is generally higher than a paper based system.

· You may need to pay for additional yearly maintenance and support.

· You may need to change the way you currently manage your account to suit your software – especially if your business is unusual.

· You could need specialist help in installing and setting up your software.