| The important of bookkeeping systems cannot | | | | software packages out there – some well |
| be emphasized strongly enough. How many times | | | | known, some obscure, some online, some offline, |
| have you been into a business or rang them up | | | | some free, some expensive, some are specifically |
| and ask them for information and they cant put | | | | aimed at certain sectors e.g. legal or estate |
| their hands on the piece of paper work in | | | | agents. |
| question. Good bookkeeping systems mean you | | | | They key thing is to get the paperwork organised |
| can always find documents that you are after | | | | into a system which is efficient and manageable. |
| and never again do you ever need to be | | | | And then to choose a software which is right for |
| wondering ‘where is that bank statement?' or | | | | you. There are loads to choose from – and |
| ‘what did I do with that invoice?' or ‘I'm | | | | you just have to pick the one which will do what |
| sure that we have already paid that supplier bill?!' | | | | you want it to do, within your budget. |
| or ‘I need to send a copy of that invoice to | | | | The Process |
| the customer - where is it? how can I find it?!' | | | | At the end of the financial year the year-end data |
| What You Need Systems For | | | | is collected by the accountant and a profit and |
| Good bookkeeping system means that you are | | | | loss account and a balance sheet is produced. If |
| never running around like a headless chicken. | | | | your books & records are in good order |
| Bookkeeping systems become ever so important | | | | – this makes the job and life of the |
| particularly when there are statuary requirements | | | | accountant a lot easier and you should be charged |
| to be submitted. Often your VAT returns are on | | | | less – because less work is being required on |
| the basis of the records you've kept and you're | | | | their part. The only way your books will be in |
| only going to be able to find those records if you | | | | order is if you have a good bookkeeping system |
| have good bookkeeping systems and your | | | | in place. So a bookkeeping system will help you in |
| records in order; Likewise whether your running a | | | | long run to save money. |
| payroll or wages system every week or every | | | | Tax Inspections |
| month you need to have good bookkeeping | | | | But, not only this. Its is very important to have |
| systems in place so that your time sheets are in | | | | neat, tidy, accessible records, on systems, |
| order and that you can find the correct amount | | | | because if you were ever to be VAT inspected - |
| to pay people. In addition you have to make a | | | | they can request to check back up to 6 or 7 |
| payment to the inland revenue for the national | | | | years into your records. And if you can put your |
| insurance and the tax money so you need good | | | | hands on what you need, and your systems bring |
| bookkeeping systems in place to be able to do | | | | up the information that they're asking for – |
| that as well. Failure to pay the PAYE or NICs on | | | | you are far more likely to have a painless audit, |
| time, can result in fines, so you need to be on top | | | | and for them to leave you alone in the future. All |
| of these things. | | | | paperwork needs to have a home. When you |
| Good Businesses | | | | have good bookkeeping systems in place, you will |
| All good businesses are simply a collection of | | | | be able to sleep comfortably at night. It's just one |
| systems. Think: McDonalds and other franchise | | | | less thing to worry about. |
| systems. They have a system for everything | | | | Nothing in place |
| – from how to open the shop and sweep the | | | | Business can be time consuming and hard enough |
| floor, how to put a gherkin on the burger and | | | | without all the additional red tape and whoo-hah |
| how to switch off the telephone system at night. | | | | that can accompany everything. Often, business |
| Good businesses will have a system for the | | | | owners are pressed for time, and just haven't |
| marketing, a system for the operations and a | | | | had the time, and can't seem to find the time to |
| system for the bookkeeping (which is one part of | | | | put systems in place. They're constantly |
| the finance function). Systems work together so | | | | fire-fighting. Plus, if bookkeeping isn't their |
| that efficiency is created and time and money is | | | | strength, then they don't even know where to |
| saved. You don't have to keep reinventing the | | | | begin, to know what accounting system to |
| wheel. Likewise, if you have a high staff | | | | choose, how to set it up, how to configure their |
| turnover, once you've created an effective way | | | | chart of accounts, what nominal codes to use, |
| of doing things – then you stick to it. There's | | | | what credit control policy / procedure to put into |
| no need to waste time ‘thinking' about what | | | | place etc., They're clueless, and they just don't |
| process again – the work flow process is in | | | | have the time to find out. |
| place. | | | | This is where expert bookkeeping companies, |
| Bookkeeping Systems | | | | such as Boogles Ltd can be very handy, because |
| Bookkeeping systems comprise of two parts. The | | | | their business is making the bookkeeping for their |
| first part is the physical organisation of the actual | | | | clients' businesses simple. Implementing |
| files and folders… how you keep the paperwork. | | | | bookkeeping systems can be a one-off job, and |
| And the second part is the electronic order – | | | | then ongoing clients can continue with it by |
| and this is where bookkeeping software systems | | | | themselves from there. |
| come into their own. There are lots of accounting | | | | |