Making the most of your bookkeeping system
A good bookkeeping system will do more than sync up your bank accounts and keep your finances in order. Often, businesses aren’t making the most out of their bookkeeping systems, simply because they don’t know how to.
To reap all the benefits of your bookkeeping system, you need to keep your specific business goals in mind. We’re taking you through some key tips to make sure you’re getting the most from your software.
Know your goals
What are you trying to achieve from your bookkeeping? Besides keeping up to date with your accounts, your bookkeeping can help inform important financial decisions, from debt management strategies to potential growth.
Set up your bookkeeping system only after you know what your future goals are. That way, your system can deliver the right information to get you where you need to be.
Automation doesn’t mean auto-pilot
One of the main reasons businesses invest in accounts management software is automation. With automated processes, you don’t have to worry about doing the accounts yourself. You can save time, minimise risk from human error, and ensure accuracy.
However, it’s not a one and done job. In fact, relying solely on your automated systems can be incredibly dangerous. Even automated systems can make mistakes from time to time, which can get out of control quickly without the right oversight. Make sure you check those automations regularly. Otherwise, mistakes could be going on in the background without businesses even being aware of them.
Assess the add-ons and integrations
A lot of bookkeeping systems have extra features that can help move your business forward. For example, if you sell online, you may be able to connect your ecommerce software into your accounts software. That way, all your sales should automatically transfer to your accounts without requiring manual entry.
Different softwares will have different additional features, so it’s important to do your research before making the investment. This comes back to working out your goals and knowing what you need from your accounts software in order to make those important decisions.
Look to the future
Some bookkeeping systems will let you forecast your potential future finances. Forecasts allow you to experiment with different scenarios to see what would happen to your business. Could you cope if you lost an important client? Under what circumstances would it be wise to hire an extra member of staff?
Being able to see how these scenarios play out is a great asset to your bookkeeping process. It allows you to budget accordingly and stay on track to maximise potential growth for the future.
Ultimately, a good bookkeeping system will work with you, not for you. Think of it as a technological member of your team.
Consult with an expert
Sometimes, no amount of research will give you all the information if you don’t know what you’re looking for. That’s when consulting with an expert is the best move to take.
At Numero, we specialise in a number of accounting systems. Whether it’s general advice and guidance, training in systems such as LEAP and Xero, or outsourced bookkeeping services, we can help. Get in touch with us today to find out more.
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