Making the decision to institute accounting software into any business is a good and necessary decision that will deliver long lasting benefits and ultimately make your business more profitable. But, like with any change, it is important to be prepared to dedicate the time and attention necessary to make the system work well for your particular business. A couple of things to consider when you plan to implement an accounting information system are the follows:
* Workflow: When you switch to an accounting information system, be prepared for your workflow to change accordingly. At the outset, you will need to enter in lots of information about your work habits and your business. What can seem like an overwhelming amount of input in the beginning has the potential to save time, help track numbers across the company, and streamline financial communications.
* Customisation: Do your homework when selecting software, the software solution you choose should be able to match your company's most important business needs or offer the flexibility to be implemented or customised easily to your needs.
* Installation and compatibility: When you have selected your accounting software solution, prior to installation it's important to ensure your workstations and server are compatible. Most solutions have system requirements listed directly on the packaging or it can be easily researched on the manufacturer's site. Ensure that you select software that is easy to use and to install. This will ensure your software is capturing accurate data and provides the business insight and reporting you need.
* Data migration: Before you migrate budget and financial data into the new accounting software, check to see what file formats, such as CSV or Microsoft Excel, can be uploaded into the new system. You may need to format your existing data into one of the accepted file formats prior to the data migration. Best practices for migrating data from your old system is to run a test migration to ensure your data is coming over appropriately into the new accounting system. Once the data is live in the system, test it several more times.
* Security: It's crucial to address security concerns to protect your data. Ensure that your employees are backing up data in a secure location, that the files are password-protected if need be, and that you have antivirus software running on any of the computers that use the accounting software. This helps protect your data from data loss, computer problems, and natural disasters.
* Training: Whatever software package you choose, its important to provide your team with in-depth training on how to use the solution. Some may not like the change and struggle with the new workflow of their daily routines. Proper training will help with a seamless adoption of the new accounting information software.
The role of accounting software in business
The role of the accounting function in any business, regardless of its type or size cannot be underestimated - it is essential. A common mistake that businesses make is thinking that because their business is small, they do not need to adhere to rules and regulations within this discipline - this is a misconception. From an accounting point of view, keeping accurate records is imperative because the resulting financial statements and reports help business owners to stay compliant as well as plan and to make informed decisions. The essential role of an accounting system is to simplify this administrative duty to free up company resources for more important tasks, like growing the business.
Accounting software helps this area of the business to be accurate and efficient. The accounting function also operates in a highly regulated environment and it is essential that companies (no matter what size) maintain detailed records in order to provide proof of compliance.
How do accounting needs, functions and complexity change as a business grows in size?
One thing that is certain when growing a business is that there will be constant change. Obviously when starting a small business, the complexity of the accounting required is relatively simple with a small amount of staff doing the jobs of many and the number of debtors and creditors being limited. What one needs to remember is that in business, like with anything, you should start with your goal in mind and from a business point of view that should include ensuring that efficient accounting systems are in place from the outset as this is a critical function in ensuring future success.
As businesses grow, the number of employees will too, as will the range of products and services offered. With this comes a change in legislative and regulatory requirements. By implementing good accounting software from day one, business growth will not be hampered by the need to update and upgrade accounting needs, this should be a seamless process and one that will assist you in being compliant whether you are a one-man business or a hundred person business.
What are the legal and financial implications of not keeping your accounts in order?
Fines and penalties can be imposed on companies that do not keep their accounting records in order, this can be both a costly and time-consuming exercise.
Organisations are currently facing increased challenges to meet the ever-changing regulatory landscape and compliance pressure. Functions such as tax compliance, payroll processing and financial accounting demand time, resources and a high level of competence. That is why choosing the correct accounting software package is essential as they guide and assist any company to be compliant.
What are the benefits of outsourcing payroll and accounting functions and how do you choose the best provider?
Outsourcing of payroll and accounting functions is an option. This depends on the needs of the individual business owner and there are a number of providers that offer this service.
When it comes to these two essential functions, it is recommended that the business owner always keep a finger on its pulse. It is important to stay connected with the financial side of the business, as it is both easy and dangerous to lose touch with what is happening to its finances.
How do you keep your payroll and accounting information secure in your own business and in the cloud?
The first essential element in keeping accounting and payroll information secure in any business is ensuring that one has a trustworthy person managing these functions. Second is to ensure that the best possible security is put into place to protect information. QuickBooks accounting software programs provide integrated, secure systems with tiers of security that allow restriction of access ensuring that certain confidential information may only be viewed by key employees within password protected environments.
Cloud is becoming a preferred option for storing of information and within the international environment. This is a very good option as broadband is incredibly fast and reliable.
From a security point of view, even with all of the safety measures that are in place - both within businesses and within Cloud storage facilities, nothing is foolproof and there is always the risk that this information may be compromised. One needs to take all of the necessary precautions to secure ones information.
Many SME's struggle with company tax legislation, how does accounting software help keep businesses compliant?
Not only does accounting and payroll software help growing businesses keep track of expenditure, debts, receipts and overdue invoices while creating accurate monthly or weekly payrolls, it also automates these financial processes without missing a single record, ensuring that businesses are always tax compliant. Quick Payroll provides tax law upgrades, thus complying with South Africa's employee tax laws. When running a small to medium enterprise, it is essential to have accounting and payroll software that helps you grow your business by simplifying financial and tax responsibilities, without incurring penalties.
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