Making Good Use of Your Information
Many people have been told by their accountants or bank managers to use computerised accounts programs such as Sage or Quickbooks, but why? What real benefit does it have for you, the business owner?
The answer to that question could in truth go on forever as ‘it depends’. Over the last 10 years or so we’ve seen a large rise in the quality of the inputting of transactions and there has been a lot of development of the programs too, with all of them striving to become as user friendly as possible while increasing the functionality and levels of outputs they can produce.
But what real benefits do you get? Do you currently only produce your VAT return four times a year and give it to your accountant for the year end accounts? It seems like a lot of effort for maybe only five real uses a year, when the inputting can take many hours, or may take many pounds as you are paying somebody else to do the processing. However you could be receiving a lot more benefit.
Nearly all the computerised programs have a very good selection of reports that we as accountants love, they give us an immediate insight into the business’s finances. The information can occasionally not be accurate and meaningful when initially produced, such as the reports not taking into account sales invoices raised after the month for which they relate, or purchase invoices not yet having been received so may need reviewing. The good news is that often only a small adjustment is needed to produce more accurate and meaningful reports.
It is in the current economic climate it is most important to have this information, as many margins are tighter and sales levels lower, having accurate information to hand can add to the decision making process whatever it might be.
We provide ‘management accounts’ for many clients, as the size of the business may require this or the business owner does not have the time or expertise to produce these themselves. If the cost of having your accountant provide these is not one the business can afford then we can still advise in how you can make similar adjustments, assist with calculations or provide any other guidance you may need.
When you are putting so much effort into entering your data, it seems that you should reap the benefit and receive an appropriate output.
Biggleswade Chronicle - 18 September 2009