There is a major advantage to recording business transactions digitally; once the basic data has been entered it can be interrogated and represented in endless types of reports.
During the present COVID disruption this ability to drill down or summarise data should be used to support business owners in making appropriate decisions. Accounting software, used effectively, will provide you with information in real time to identify problem areas and direct your efforts to enact counter measures.
Most businesses use accounts software to monitor their bank balances, chase unpaid bills and keep an eye on bills they need to pay.
Whilst these are all valuable features, and they do enable you to manage daily “housekeeping” chores, they do not inform you of impending cashflow, profitability or solvency issues. To address these additional needs, you will need to review the standard reports that all accounts software packages provide. If necessary, you may also need to create new reports – linked to your accounts data – that provide you with the additional evidence you need.
There are very few business owners that would not benefit from recording and interrogating their business data digitally.
Some may only need fairly basic functionality; others would benefit from a more in-depth approach. We recommend:
- There is no excuse for avoiding the recording of your business transactions digitally. If you are completely computer phobic we can offer bookkeeping support.
- Those that already use accounting software should review the number and type of reports they produce to see if additional reports are required.
During COVID disruption - to individual businesses and to the wider economy - information as well as cash is king.
With very little effort, new reports can be created to help you manage specific problems and once created, they will be available to you instantly, at the click of your mouse button. Don’t get left behind or stressed by lack of information. Go digital…