In the early stages of owning a small business, many people find that they also have to be the bookkeeper. This means that you spend less time in other areas, and doing what you love. Your bookkeeping methods play a huge role in determining whether the process is efficient and fun or tedious and time consuming.
The majority of complaints with traditional bookkeeping software involves the monotonous process of entering data, sorting and preparing it for the accountant. If you run a small business, it is not uncommon to find yourself not knowing where to begin with basic bookkeeping. However, it is imperative that you keep a good set of books that are consistent and regularly updated.
In a world where computers are connected online, these problems are becoming a distant memory. Recent advances in cloud-based bookkeeping software have placed small businesses on par with larger competitors in the area of financial management.
No experience required
In some cases small businesses often lack the resources to hire bookkeeping professionals. However, while online bookkeeping services are not intended to replace a professional, the easy- to-understand report it generates can help small business owners with little or no financial training make important decisions regarding their business.
Cloud-based bookkeeping offers web connectivity to multiple users through different devices. This brings small businesses closer than ever to large corporations. The convenience of cloud-based bookkeeping also means that data can be entered in real time meaning you can keep records up to date and accurate while on the move.
Why does bookkeeping matter when it comes to cashflow? It is hard to get an accurate picture of your financial position if your books aren’t in order. As every small business owner will understand, cashflow is the ultimate key to success.
The key to keeping on top of cashflow is to reconcile as often as possible. For example, a bank reconciliation is when you organise all the payments that have gone through your bank account. You should be certain of what money has or hasn’t been paid or received. Cloud-based bookkeeping is perfect for keeping everything organised.