Accounting software is a computerised extension of double entry accounting (bookkeeping) . Some software providers rely heavily on the user’s knowledge of double entry to function efficiently; others do all of the hard work for you.
Ranking in order of our preference:
- Xero
- MYOB AccountRight
- MYOB Essentials
- QBO
- Sage
Most, if not all Accounting software, can automatically handle tasks that used to take up all of your time. From importing bank transactions to sending invoice reminders, to bank reconciliations.
Your data is stored safely and in one place, and it’s easy to get a snapshot of how your business is tracking. You can also invite your accountant or bookkeeper into your online software, then they’ll ensure you meet all your tax obligations.
This means much easier preparation of your business activity statements, you can single touch do your payroll, and prepare your taxable payment annual report (TPAR) with ease.
Single Touch Payroll means you can look after your staff with fully integrated Payroll so you can keep all your business information in one handy place. Having the essentials like invoicing and payroll at your fingertips makes life much easier as a business owner. You can also download the APP for these software options so that you can easily access to information on the go.
Common sense dictates that good data going in, results in good data coming out. Attention to detail will give you consistent data entry.
Here are our top tips:
- Ensure supplier transactions are coded to the same expense category.
- Complete your database with all information about customers and suppliers, not just the name.
- GST codes help populate the activity statement, check all codes as the data is entered
- Use the features – sounds obvious. (If you are using it as a general ledger only, it may not be the right software for you)
- Reports should work for your business, some will need customising
- Reconcile, Reconcile, Reconcile!
If that’s not enough, other business apps can integrate with Xero, making your processes more efficient, and saving replication of databases and keystrokes. Be mindful, that you are not doubling information, especially income, as many payment platforms attempt to also take the ‘hassle’ out of entering your invoices, however automating invoices can often result in duplicating income.
All in all, having your data on the cloud means you can access your financials from anywhere and on any device, you just need to connect to the internet and login.
If you’d like more advice on choosing the right platform for your business, feel free to reach out to us.