Making the decision to move to a web-based accounting system is a no-brainer. One of the key reasons is that it allows business owners to manage aspects of their accounts from any location with internet access. The advantages of this immediacy and convenience cannot be underestimated.
Therefore, the transition to online accounting software helps you save considerable time, keep records up to date wherever you are, and ensures that the correct information is always stored. The last point is especially important for filing VAT returns and company accounts.
Four Key Steps to Choosing the Right Program
Once a company makes the decision to go with online accounting software, one of the most important decisions is selecting the ideal software package. We suggest you do this by:
- Spending time researching and seeking expert opinion
During your search, remember that the system should have a user-friendly interface to allow for easy navigation between the different features. It also needs to offer an excellent journal module for accountants.
For example, if you have a business that manages multi-currency accounts, you need to ensure that your online accounting system has a multi-currency feature. Similarly, if the enterprise has slightly complicated VAT rules to follow, company bosses should consider a system that automatically implements reverse charge calculations.
- Check the type of reporting on offer
This is particularly essential. Your company may require comprehensive reports at month-end, for example. Some programs may not provide project-based recording or retrospective reports for analysis.
As with implementing any new system, businesses should allow for some hours and cost to be incurred in the migration process. However, this time and money is well spent once the system is running smoothly.
Within the migration process, the exact steps will depend on your business type. That being said, you can likely expect to:
- Reconcile the data, the bank, and aged debtors and creditors
- Set all required nominal and project codes, accounting and VAT periods, as well as VAT schemes
- Confirm the right depreciation rates for the asset register
- Customise the sales invoice template with your logo and design
- Test the migration
You do this by checking the balance sheets and comparing them with sample information from software you used previously. If they match, it’s a sign that the migration has been successful and that you’re up and running on your new software.
- Start using the system
Anyone who goes through this process must know that there will be a learning curve involved. As stated before, whenever we try something new, there are always some challenges along the way. Therefore, you can expect to find several ways of working within the system you have chosen. You simply have to explore it and trial what works best for you. When in doubt, seek advice.
Whatever your experience, you can be certain that making the move to an online accounting system is hugely beneficial to your business. In fact, we believe it to be the clever choice.