Business Basics: Accounting Systems
Many small businesses do the basic administration on a day to day basis - raise the invoices, pay the bills - but the rest of the accounting gets left for "another day", which is often then at the end of the month because a VAT return is due or a filing deadlines or because they need to get information to their accountant.
But putting in some basic systems and procedures will make your life a lot easier, and these don't need to be complicated.
There are lots of options out there such as Quickbooks and Xero but what you want to be looking for is a cloud based system so that you can access wherever and whenever you want - this takes away that barrier of needing to be at your desk.
These systems will also give you an automated bank feed option so that they link to your bank account and pull the data across each day for you - this means you can reconcile money coming in and going out on a regular basis without having to enter every line from the statement into your software.
RECEIPT SCANNING SOFTWARE
Applications like Hubdoc or Dext (previously, receipt bank) will let you scan in or email over your supplier invoices and then you "teach" it what these are and they will feed into your accounting software so that the invoice information is pulled across for you. There will be some that you need to enter extra information for and classify but the majority will be pulled over for you to authorize.
Set aside a dedicated time each week for your accounts administration, a few hours each week will let you keep on top of reconciling your bank balance and account, checking if clients are late in paying you, paying suppliers that are due etc. This means you will have more accurate information about your business and how it is doing.
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