In our blog post this week, we continue a series looking at the three key steps that businesses need to tackle to get their business finances sorted. And our focus in this blog post is on accounting software and managing your finances.
Step 2 – How to use an accounting software to track your performance
The first thing you need is an accounting software for your business. Some of the key things you should think about when looking at accounting software are:
- Cloud v desktop. Do you need access on the go and have multiple users or want to share data with your bookkeeper and accountant in real time, than a cloud based accounting software package is probably more suitable for you.
- Do you invoice and need unlimited invoicing? Accounting software has a strong focus on invoicing and should be able to help you manage this function.
- Do you track inventory? Make sure that your accounting software has this functionality so you don’t need to worry about costly addons.
- Do you have overseas sales and need to consider other currencies. It will often be an additional cost but it is so important in tracking things effectively.
Some options to consider are Xero, MYOB Essentials, Intuit and SAASU. Invest the time getting the right accounting software so you don’t waste time later moving packages.
How can you maximise your business performance using accounting software?
- Remember – shit in, shit out so you still need the correct inputs going into your software package. Find an accountant or bookkeeper (they really should be done together) that understands what they are doing and can talk in your language
- Try before you buy with the accounting software to make sure that it is going to be a relationship that works
- Connect your bank account to the accounting software to ensure that all bank data is migrated. It saves loads of processing time
- Make sure you keep your receipts
Getting the inputs right means the outputs will make sense and you can make some great business decisions on them. Use management reports generated from the accounting software to refine how you run your business and to make better decisions.
This blog post is part of a three part series on managing your business finances. You can read the first part on invoicing and cash here.