Getting book smart
22nd July 2016
An important part of an accountant’s role is advising their clients on the appropriate method for recording their business transactions. Understanding the clients and what information they need to enable them to run and grow their business efficiently and effectively, helps to advise them on the best software product to meet their individual needs.
In the past, the method of bookkeeping has usually been determined by the previous experiences of the individual completing the bookkeeping. Those with experience of using Excel have been happy to use this as it is seen as simple and cost effective and are often unwilling to move to accounting software such as Sage or Quickbooks. Those with experience of using Sage or Quickbooks have usually been happy to continue using the same desktop package year after year, without upgrading to the latest versions for as long as possible, to avoid additional costs.
Up until now, all of these methods have worked well to a degree. However, where up to date information is vital, the flaws with desktop bookkeeping are all too clear to see. In addition, with the introduction of Digital Tax Accounts, which are due to be phased in from 2018, these methods of bookkeeping will soon be redundant.
A modern cloud based accountant, wants to be able to advise clients with current information and to resolve clients’ issues in real time, so that the information they have is relevant and allows them to make the best decisions for their business. Desktop bookkeeping software does not easily allow this, as it requires more data entry for bookkeepers and this takes more time, meaning the information is not always up to date, when decisions need to be made.
Over the last few years there has been a huge rise in the number of online bookkeeping packages such as Xero, Clearbooks and Freeagent. These are becoming extremely popular with both new and existing businesses and have been a revelation for accountants. These new software packages have the benefit of saving our clients’ time. They can also save clients’ money, as the time required to pay a bookkeeper is reduced and in some cases, has led to the business owners not requiring the services of a bookkeeper at all.
More importantly, because the software is online, the accountant can access the data in real time, resolve any issues, make adjustments, extract information for accounting and tax purposes, and advise our clients, without denying them access to live information.
Plus Accounting are certified Xero advisors and can offer packages for set up and training on Xero, as well as free demonstrations.
If you feel it is time to review your bookkeeping software and ensure that you have real time information, please contact me at firstname.lastname@example.org or on 01273 701200.Any views or opinions represented in this blog are personal, belong solely to the blog owner and do not represent those of Plus Accounting. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.