17 Feb 2017

What's The Best Bookkeeping System For You?

I had a conversation with a customer of mine today who is looking at upgrading the bookkeeping system he uses for his business and this discussion highlighted aspects of choosing a bookkeeping system that every business owner should think about to help them with this (often) mundane aspect of running their business.

There are a myriad of bookkeeping solutions on the market these days and many small business owners believe (incorrectly) that they are all much of a muchness, but here's the thing - if you stop thinking about what type of bookkeeping system you should use and think more about what bookkeeping system allows you to collate your financial records the quickest you will find that this aspect of running your business becomes much - MUCH - easier.

Let me give you some examples of what I am talking about -

If you're a sole trader - or a sole proprietor - who runs the business on your own and will never have staff, why do you need a bookkeeping system with all the "bells and whistles" like payroll, inventory management and the like?

You're never going to use these aspects of a bookkeeping system, so why would you waste time trying to learn them and money on a system that has them?

If you don't understand accounting principles - in other words all this "debit and credit stuff" that you hear about all the time - why would you choose a bookkeeping system that is accounting based?

Wouldn't it be easier to use something as simple as a spreadsheet - or if you have (or need) to use a bookkeeping system, wouldn't a really simple bookkeeping program that doesn't bamboozle you with all the accounting jargon be the best option for you?

Let's come at this discussion from the other direction - if you have just started a business and you know that as soon as you can you will be employing staff (or you have to employ staff from the moment you open your doors), why would you buy a "base level" bookkeeping system when you know that in the not-too-distant future you are going to have to upgrade your bookkeeping system to a more complex one?

Here's something else to think about - if the only reason you are doing your own bookkeeping is because you can't afford a bookkeeper, but you know that as soon as you can afford one you will be getting someone else to do the bookkeeping for you, why would you choose a bookkeeping system that "sits" on your home computer instead of having a system in the Cloud so that when it's time to hand over your bookkeeping to someone else, the process is quick and seamless?

And while we're going down this rabbit hole - if you are always getting hounded by your Accountant because they are constantly chasing your receipts to check against your financial records, why wouldn't you choose a bookkeeping system that could give your Accountant direct access to those receipts instead of you having to rummage through boxes of paperwork trying to find that one receipt that you have been asked to produce?

Bookkeeping is a fact of business life - as much as you might want to avoid it you can't - so when you are thinking about the best bookkeeping system for you, spend time thinking about which system is just right for your business - and your business alone - so that you can get this aspect of running your business done quickly and easily and get back to those things in life that are most important to you.

1 comment:

  1. Nice article that you have shared here about the Bookkeeping System. I am impressed by the details that you have shared in this post and It reveals how nicely you understand this subject. If anyone looking for the outsourced accounting and bookkeeping services, visit Advancefinserv.com