When considering how to keep records for your business it is important to choose the best system for you. An accounting system should be easy to use, collect and store your data, and be accurate. No single system works for all people.
If your business has a minimal amount of records, a check book, receipts, and bank statements may be all that you need. Software with additional feature could be unnecessary and ultimately add more time to your administrative tasks and take time away from managing your business.
- You may be already doing this
- Easy to manage
- Can be incorporated into a spreadsheet, such as excel, to reduce manual work
- Errors can be hard to identify
- Work might get put off, then it gets hard to catch up
- The amount of work and effort can grow to the point of being completely unproductive
There are a variety of software packages available to keep your accounting records. Intuit QuickBooks, Xero, and Sage are just a few of the software offerings that promise to streamline record keeping and provide additional features like invoicing and bill payment.
- Additional features such as bill tracking, invoicing, and receiving payment options
- Reconciliation of accounts is generally easier to manage, which means fewer errors
- Automated data capture capabilities
- The complexity of software packages means there is generally a learning curve or you may need to hire someone to operate it
- Pricey software can cut into the bottom line
- While software is meant to improve efficiency, it can be harmful to productivity if you are using unnecessary features or procedures
(KISS) Keep it simple silly is the best way to go about choosing a system. Choosing the right system and process is a personal decision that requires consideration of price, offerings, and professional recommendations. Your bookkeeper, accountant, or CPA will be able to go over the various options and help you choose the best option.
If you would like help understanding and implementing your accounting system options please contact us. We have experts in accounting software that can help you get set up the right way.