Preparing your annual accounts?

Preparing annual accounts is an integral part of running a business, despite many owner-managers seeing it as an activity which has no connection to the 'real business' of attracting customers or making and selling products.

A company needs constant financial management to ensure that it is maintaining its progress in its marketplace and therefore accurate and realistic financial information should be available at all times, particularly when preparing your annual accounts.

The task may at first appear daunting but there are ways to simplify the process. One is to consider using a computerised accounts system.

Using a computer.

Computerising your accounts system will make keeping the books much easier, give your business a more professional image, improve your efficiency, and give you quick access to accurate information.

How can a computer help me?

There are many different reasons for putting your accounts system onto a computer. Routine tasks take minutes instead of days, statements and other regular correspondence can be mail-merged and personalised and up-to-date balances included. Correcting any mistakes can be done at the touch of a button and if your business is growing, a computerised accounting system will make life much easier when you take on new staff, increase your spending or have more invoices to chase.

End of year accounts.

Perhaps the most useful aspect of a computerised accounts system is the fact that once the information is recorded, it can be used to give you a snapshot of the business performance at any time, which is ideal when preparing your end of year accounts.

At the end of every financial year, your accountant will need to audit your records and, with a manual system, this can be a tedious process. If you have a computerised system, the process is made much simpler for you and your accountant. Hopefully, it will take less time to conduct the audit, and you and your staff will be free to get on with running your business.

Do's and Don'ts of buying accounting software.

Don't

•Walk into a shop or dealership and buy the cheapest thing on offer.
Remember, it is not the PC that does the real work, it is the software and if you buy a system that is not suited to your business it could cost you a lot of time, effort and money later on.

Do:

•Define what it is that you need your accounting software package to do.
Do you want to run you whole system on it or just do some sales invoicing? Will you need to automate just the main ledgers or would you like to put sales order processing, purchase order processing and stock control onto the computer? Do you have any special procedures or requirements specific to your business which you must stick to, whatever the system? It is important that you answer these questions before you start shopping around.

•Collect some information on accounting software products and PCs.
Read some of the reviews published in computer magazines.
Talk to your accountant, who may be able to advise you about some packages. Information may also be available from authorised software dealers, large retail stores such as PC World and professional bodies such as the Institute of Chartered Accountants.

Where can I buy the software online?

Sage Software Ltd is the UK's largest supplier of accounting and payroll software.

For more information contact Sage on 0845 3000 900 or on the Internet at www.sage.com

Any Questions?

If you have a question, please try using the forum before sending us an email.
Post a Question | View the Forum