Bookkeeping software shouldn’t be painful
At first, you may be frustrated by handling finances, or worse, second-guess your decision to open your own business. You may be overwhelmed by monotonous jobs and hidden responsibilities.
Most people using traditional bookkeeping software have the same complaints. They say the process of entering data and then sorting it is a pain. Not to mention all the headaches involved in getting it prepared for their accountant.
In a world where computers are connected online, these problems needn’t exist anymore. The accounting landscape has shifted dramatically. Online bookkeeping software connects to the internet to automatically collect your data, and then sort it for you.
Bookkeeping is much less painful when your bookkeeper and accountant can login and view up-to-date accounts online – anytime, from anywhere.
Cashflow is key to business success
So why does bookkeeping matter when it comes to cashflow? Well, if your books aren’t in order, then it’s hard to get an accurate picture of your financial position. As every small business owner knows, cashflow is the ultimate key to success
People fall into the trap of looking at their bank balance and thinking it represents the money available to pay their bills.
People fall into the trap of looking at their bank balance and thinking it represents the money available to pay their bills. But the bank balance is an illusion. You can’t see the liabilities that are looming, such as taxes or bills. When you can’t see up-to-date cashflow, you’re like a pilot in fog. Without any instruments to see altitude, speed, or direction, you’re flying blind.
Keep on top of cashflow to avoid surprises
The key to staying on top of cashflow is to reconcile as often as possible – ideally every day. A bank reconciliation is when you organize all the payments that have gone through your bank account. You should know exactly what money has or hasn’t been paid or received. When you know what’s coming, you can take action before things get messy.
The fun way to do bank reconciliation
The best bookkeeping software automatically imports all your bank statement lines, and matches them with your sales invoice or bill. Then you truly know if your business is profitable, and where you can be smarter with your money.
Suddenly bookkeeping isn’t so hard. In fact, it’s so easy many people say it’s fun and even addictive!