Regardless of their size or type, all businesses need to keep some form of accounting records, either as a statutory requirement, or for tax purposes, or for both.
Your accounting systems can range from simple manual records based on cash-books to computer programs capable of “what-if” cash-flow projections and other valuable analytical functions.
But whatever system you use, it must above all be able to give you the financial information you require to be able to run your business.
So, whether you are just starting-up or expanding, how exactly do you go about deciding which system is best for your particular needs?
With so many alternatives widely available on the market, it is easy to overlook some of the basics of planning and make a snap decision.
But we have seen many examples of clients who, through understandable inexperience, failed to get it right. This can lead to a number of different problems:
So when you are planning an accounting system, make sure you consider the following key issues:
These are not easy questions to answer (especially the first one), which is why it may well pay to take external advice from a firm like Ritson Smith which has installed many different systems for clients of all shapes and sizes.
Using an external consultant in this way may well reduce the overall cost of the project; certainly it will ensure that all hidden costs are taken into account at the planning stage. It is all too easy to overlook the hidden costs associated with:
Experience has shown us that there is no definitive, text-book method for selecting and installing a new accounting system.
Effective planning, however, can ensure you get value for money and a highly effective tool to help you monitor and develop your business.
Contact Neil Simpson if you would like assistance in selecting, setting-up or training in accounting systems.
Ritson Smith’s busy audit and accounts department performs a wide range of services for clients in virtually every business sector, ranging in size from sole traders to large limited companies with international connections.
At Ritson Smith we try to make the audit process as painless as possible. Our staff are experienced in dealing with a wide variety of clients and systems and will tailor the testing to minimise the disruption to your working day.
Ritson Smith's tax specialists not only help you avoid tax penalties, but also draw up detailed plans to ensure you can gain the maximum legitimate benefits from all current sources of tax relief.
Our highly experienced team of corporate finance professionals works not only with client companies and personal investors but also with banks, venture capitalists, financial institutions, management teams and non-client businesses.
Whatever the challenges, Ritson Smith's highly experienced specialist Business Recovery team, headed up by partner Ewen Alexander, is trained to seek out innovative and practical solutions for under-performing businesses.
Our litigation support team, led by Niall Farquharson an accredited expert witness, has worked with the legal profession to provide expert opinions across a wide range of issues.
We can provide a partial or full outsourcing service which is tailored to your needs and can provide you with reliable, up to date management information on which effective business decisions can be made.
RS Payroll is a BACS registered bureau service for the outsourcing of your payroll processing