The Benefits of Going Digital

The reporting requirements of Making Tax Digital means that many businesses are for the first time considering implementing an Accounting Software Package. If you have been used to keeping your accounting records manually or on a spreadsheet, this can be a scary prospect. However, choosing the right package for your business and a little training can bring significant advantages to your business…

A linked-up approach to the finances of the business. Nothing gets forgotten about. When a sales invoice is raised it remains on the ledger until you get paid. You can easily run a report of who owes you money and how old the debt is at any point in time. Reporting of VAT and payroll can literally be achieved by pressing a button.

A better understanding of how profitable your business is. Many of our clients have found that being able to get profitability information at the press of a button has enabled them to monitor sales trends and see spikes in expenditure as they happen. They can then move quickly to put measures in place to achieve better control over their costs.

An understanding of Departmental Performance. If you have different products or cost centres within your business, a computerised system will allow you to report separately on the various income streams. You can then see what is doing well and more importantly quickly establish an income stream that is struggling. Being armed with performance information means you can take the necessary calls earlier rather than waiting until it is too late.

A significant reduction in paper records. Most accounting packages have the functionality to allow invoices to be scanned and stored on the system, removing the requirement to hold hard copies of every document.

Accessibility. The cloud-based nature of most packages means that you can easily access information when you are travelling or on site with a client.

Better Quality Accounting Records. Your accountant’s time that was previously spent analysing payments and reconciling banks can now be dedicated to looking at tax planning and investigating what is working well and not so well for your business.

Our Tips for Implementing Accounting Software Package

Shop around and choose the package that is most suited to your business. You may require a system that has a departmental reporting function or has automatic bank feeds linked in to it.

Ask your accountant to provide you with some basic bookkeeping training. There’s no better way of getting to know your business than doing it yourself. This will help you understand the functionality of the system and where to go to get performance reports. Remember that the reports a system will provide are only as good as the information you input so take the time at the start to make sure that customers, suppliers, bank accounts etc. are all properly set up.

If you need any assistance in deciding on the best package for you or require training contact Claire.mcelduff@gildernewandco.com in our office.