Small business accounts software – an essential business tool

Before deciding whether you need an accounting software, ask yourself how serious you are about your business. The majority of our clients use an accounts software and it is a pre-requisite for us to be proactive in their business and add value. Even if you are just starting out, how serious are you? This is important factor in deciding whether to use an accounting software. But then, you would expect an accountant to say this and support the use of an accounts software.

If you are serious about your business and want to grow, the benefits derived in using an accounting software, in my opinion, outweighs any arguments against its use. Most of the arguments against surround the cost and understanding bookkeeping. Both are invalid in today’s market.

There are so many accounts software on the market today that cost is no longer an important factor and you do not need to be passionate about bookkeeping for it to be used as an important business tool. A small financial investment in an accounts software can lead to considerable time saving in administration and provide essential data for a business on a day to day basis.

The reason for this is that the amount of business intelligences held on an accounting system makes it an important strategic business tool. Some of the benefits include:

• Reduce delay from the time a sale is made and generating an invoice.
• Faster collection of cash by keeping track of receivables and the ability to automate statements and chasers.
• Identifying your best and worst customers or clients in terms of volume and profitability. This enables you to better forecast where your efforts should be directed.
• Tracking payables to better forecast cash requirements and managed more efficiently your working capital.

You will note that I have not listed any accounting related benefits, such as being able to do your VAT Return more accurately or able to reconcile your bank account quicker etc. The overriding argument in favour of using an accounting system as a business tool must be that the business runs more efficiently and provide essential information. This can be the difference between successfully growing your business and finding yourself in financial difficulties.

This is why we always ask new prospective clients how serious there are about their business. If you want to grow your business, it is worthwhile making a small investment in a good accounting software from the outset. With our help in setting it up and teaching you the basics, you will quickly see the benefits.

So how much does an accounting software cost? You could download a basic one from the internet for free or purchase one for less than £50 for a system that provides limited functionality. We do not advocate a particular accounting software, but look at your business and identify key elements that an accounting software needs to do well to help you grow and find the ‘best fit’ in terms of price and functionality.

Unfortunately each accounting software on the market has its strengths and weaknesses and we have not come across one software that fits all. For small businesses the choice is now immense and very confusing. You have Sage, Quickbooks, Office Accounts, MYOB, Mamut, Accountz and Kashflow to name only a selected few. Most of these you can download on a 30 day trial version from their website. However your first port of call should be your accountant for advice, who should be able to give you a choice of at least two or three which should be more appropriate for your business needs for now and the future.

Ibrahim Aziz Numerion Associates

Why not contact us to discuss how we can help you. Mail me at Ibrahim.aziz@numerion.co.uk