How having accurate information helps you as the business owner make informed decisions.
The tool you need to make your engine work best is accounting software.
Let’s take a little trip into the past to look at how the process of bookkeeping and accounting have evolved….
Bookkeeping has always been a function of not only business,
But kingdoms, and as a way of managing the taxes paid by the people….
The role of the bookkeeper or treasurer was a revered one.
It was their role to keep account of everything!
So that the master of the kingdom would always know the state of their affairs.
The term “keeping meticulous books” was born. Ink and paper on manual ledgers were the tools of this role.
As time moved on the role of the bookkeeping function became more structured.
Computers became available and the birth of the spreadsheet.
With the introduction of sales & payroll taxes down to the small business,
There became a need for small business owners to keep their books on a regular basis,
And not once a year to file taxes.
The birth of the cottage industry bookkeeper was born.
We saw many women take on this role as it was something they could do to earn an income around their families.
And also at a price that small business owners could afford.
This new era also saw the introduction of excel, and desktop accounting software.
Which completely revolutionized this role and the bookkeeping function recognised as a profession.
Over the last 10 years, with the introduction of cloud accounting software…
The bookkeeping work is performed via an internet connection..
And a direct link to bank transactions, the role of the bookkeeper stepped up into a true business model.
The ability to reduce costs and serve more clients was born. The bookkeeping business was here.
What this meant for small businesses, is that…..
The cost of engaging an outsourced bookkeeping firm to crunch the numbers..
Was something that they COULD have in their business structure.
And the cost to get the information on the true story of the business
And having an external advisor to help them interpret the numbers was attainable
It’s “the norm” now for a small business to build into its budget the bookkeeping function.
Now, back to accounting software.
This is the TOOL that your bookkeeper will need to perform this function.
And one that you will also use as the business owner to review things.
It is live information and becomes the single source of truth for your business data.
Over this coming month,
I will be deep diving down into the different types of software that is out there.
And how you can pick the best one to suit your needs.
Most bookkeepers will be able to recommend what is best.
I always recommend that you don’t run with something that works for the advisor.
You must ensure that you put in place the BEST solution for your business.
My aim is to help you have some knowledge around this, what questions to ask and how to ensure you get the right one.
See you in the next post, where I will step you through the options. What accounting software are you using right now?
Comment below and let me know? 👇