Your small business has reached that point where excel spreadsheets just
can't cut it for accounts any more. This growth is great for your
business but it means you may be facing the task of creating an entire
accounts department, potentially from scratch.
It is worth taking a moment to consider this move before you dive
right in. These few points should be kept in mind when you find your
small business accounts growing.
Don't DIY
While accounts are a vital part of a business, without the business
there is not much use for accounts. As the owner of a business you are
the driving force that keeps that business in motion, pushes sales and
sustains the income that makes accounts necessary.
Spending your valuable time struggling with accounts to save on the
expense of an accountant is a false economy. Bookkeepers and accountants
can often be hired on a freelance basis as you determine what your
requirements are.
Accountants can also provide much more than book balancing. They can
advise on many issues such as tax planning that can result in
substantial savings for a business.
Don't Skimp on the Hire
A less experienced accountant might be less expensive but they will
have to learn a lot on the job and much of that learning will come from
making mistakes, at your business. Larger companies can afford to take
on junior staff who can be supervised and mentored by experienced
co-workers.
For small businesses this is not an option. Not only will an
experienced accountant be far less likely to make errors they will also
be able to advise you on spending strategies as well as act as a CFO,
negotiating on your behalf with banks or other creditors.
Make Sure your Staff and Software Match
Your new accountant may have years of experience but if its in another accounting software
package that might be a problem. Getting to grips with new software may
take some time and understanding its finer points will take even
longer.
Make sure they have time to get to know the software you have or if
you can, implement the software your new accountant is familiar with.
Don’t Be Afraid to Implement Direct Debit
It may ruffle a few feathers but you should always insist on
receiving payment by direct debit. Primarily it ensures a healthy cash
flow for your business. Any small business owner will tell you how vital
cash flow is to the survival of their business, particularly in
transitional growth periods.
The other key benefit of using direct debit is the simplification of
record keeping. Using accounting software that not only records but
implements direct debits can save on a lot of accounting work and also
ensures more accurate accounts.
Be Smart About Tracking your Expenses
Everyone knows how important it is to keep track of expenses. But
somehow everyone always forgets to do it. For many small businesses
keeping track of expenses means stuffing every receipt from every
expense in a folder then forgetting about it until it’s time to do the
books.
This is fine until people start forgetting to keep receipts, or
misplace them or even start a second expense folder because they can’t
find the first. Taking the time to set up a dedicated expenses debit or
credit card means that all expenses are recorded automatically,
eliminating the need to keep receipts.
Source: http://www.brook.ie/expert/accounting-software/simple-accounting-tips-for-growing-small-businesses
