There are a few things that are common in all businesses that succeed. They all put working financial systems in place when they open their doors. Also, most of them have a working and efficient monitoring systems in place. These are systems that enable them to keep track of all transactions that take place. Working systems make it easier to catalogue assets and monitor them. At Hammersmith Chartered Accountants, we have a reliable and competent team of experts. You can rely on to help you to put the right systems in place. They will recommend basic accounting packages and put in place internal controls. The controls are all you need to spur your business growth. Specifically, we will guide you in the following areas:
Selecting Appropriate Accounting Software
You no longer need to labour with the old method of maintaining books of accounts. Also, you don’t have to ensure that everything is recorded in appropriate ledgers manually. We will introduce you to the world of accounting software. By just a few clicks, you will access critical information to help you make prudent decisions. You may opt to do this on your own. Unfortunately, the market is flooded with many options that will surely confuse you. Many of the software are difficult to use and may lead to a lot of confusion. So they may not serve your needs.
But when you partner with us, we will look at both your needs and the skills available. We will then select the software you will use comfortably. We have the expertise and technical know-how. We are well positioned to recommend the software that is ideal for your type of business. It does not matter which niche you are in. We will pick software that can be customized to your needs. We are aware that the software you decide to use will impact on your business. So the first thing we will do is to study your business needs and make recommendations.
At Hammersmith Chartered Accountants, we acknowledge that cloud computing is becoming important. It is helping businesses to grow. It will allow you to access vital business information from anywhere. To achieve this goal, we will recommend software that allow you to utilize cloud applications. It ensures that your records and data are secure on a 24/7 basis. One of the software we are versatile in and which we use often is QuickBooks Online. The software will allow you to access your business financial information anywhere. If you are already using any of the accounting software, we will upgrade them. Our goal is to make your business efficient.
Putting Accounting Systems In Place
Most businesses sell goods and services on credit. They later invoice their customer to demand payment. If you don’t have the right systems in place, it can mess up your business. Bad debts or those that take long before they are collected can bring your business to a halt. You need to put in place systems that can help track the movement of inventory and monitor accounts outstanding. The systems should also help you keep an eye on your business cash flow. It ensures that spending on finances is controlled. Here are some of the things we will ensure that is in place.
Opening a bank account
Although this may sound basic, not all businesses have an operating account. In some cases, they take their time before opening a bank account. We will ensure that you have an active bank account. It allows you to accept cheque payment and pay your creditors via the bank. It will help control your finances and monitor cash flow.
Prepare a list of creditors
We will help you put a liability account in place. The account consists of names of people you owe money. They include mortgage firms, banks, vendors and even credit companies.
A list of assets the business owns
A good accounting system should be able to show the list of things the business owns at a click of a button. The list should show assets like building, office equipment, office supplies, and vehicles among others.
Computerize your system
If you decide to computerize your operations, we have many accounting software to choose from. QuickBooks, Quicken, and Peachtree are the most utilized. We will study the needs of your business and choose a system that works well for the type of business you run. We recommend using QuickBooks because it is easier to use. It can also be used even by people with limited accounting experience.
Review of existing systems
Our work is to make your business efficient so that it can prosper. So, when you partner with us, the first thing we do is to carry out an intensive review of the existing systems. This is intended to help us identify areas that need to be improved. We assess and analyse accounting needs and make recommendations that can enhance them. If there is a need to replace any of the systems, we will do so. But if the existing systems are serving the needs of the business, we will retain them. We will only recommend the things you need to do to make them efficient.
Reviewing the current accounting procedures
After some time, HMRC comes with new regulations that must be followed. As such, it makes it necessary to carry out a regular review of the current accounting procedures. This is to ensure that the procedures you use are compliant to HMRC requirements. It will solve issues associated with accounting, bookkeeping, and payroll and tax. Besides, it will allow you to go about your business without worrying.
This is the process which ensures that the organisation’s objectives are achieved. It ensures that the business is efficient and follows the set policies. Internal controls ensure that the business is efficient and minimises risks. Also, it ensures that resources are well utilized. Besides, it prevents fraud and wastage. To this end, we ensure that there is effective financial reporting. We also ensure that inventories are controlled. Fortunately, the systems are self-checking. They ensure that all payments made to third parties are valid. Also, the payments should be supported by the relevant documents. It reduces process variations and leads to predictable income. We rely on the computerization of systems to ensure effective internal control.
Tracking All Financial Transactions
Through experience, we have identified reasons that make business not grow to the next level as quickly as they should. One of them is the inability to track financial transactions. In some cases, business owners get overwhelmed by the volume of financial information. So it makes it difficult to keep trail of the thousands of transactions that take place every day. In the end, they lose monies that could spur their growth. We know that with proper planning and management, it is possible to propel the business to the next level. Here are some transactions that our systems will keep an eye on.
Day to day transactions
These transactions are captured in the source documents. So a small business owner needs to keep an eye on the documents. They include documents related to customer sales, payment and purchases. They also include documents on items received and the cheques disbursed. The documents are vital since they give evidence that a transaction was completed. Here is a list of the most important source documents you need to keep an eye on.
- Purchase orders- the orders should be matched with the supplier invoices
- Customer invoice- ensure you maintain a list of invoices in the numerical order
- Teller transactions and Cheque deposits – should be filed by date
- Cancelled cheques- should be filed alongside the bank statement
- Timecards- should be filed in alphabetical order
- Payroll checks – should be filed by the dates they were made
- Importance of the source document
Putting these systems in place is important. It ensures that you have all the documents to refer to for answers when the authority comes calling. Also, the documents provide proof that the transactions reflected in the financial statements took place. HMRC and another government department may get interested in some of the documents.