For most business owners, the concept of an accounting or bookkeeping system for their business includes the purchase & use of the desktop version of QuickBooks. While this is definitely sufficient for the majority of those same folks as it has the basic functions needed, a lot of times it is not the ‘right’ solution(s). As can be seen in the graphic, an accounting or bookkeeping information system is composed of several different processes including Sales & Accounting Receivable, Bills & Expenses, Payroll, Cash, Inventory, as well as Financial Reporting, which are all then composed of sub-processes. The good news is that many of these bookkeeping systems can be cloud-based.
Whether those items are relevant to your business depends upon your industry and business model. No matter what model you fit in as a business, after viewing the infographic you probably came away with a sense of anxiety due to the complexity contained within the bookkeeping function of the business. With that being said, there are a few simple, beginning steps that will help your thought-process in determining the best direction for your business.
Cloud-Based Bookkeeping Basics to Consider:
Most of the processes can be handled thru functionality provided by your standard QuickBooks software, or the various online programs that exist including QuickBooks Online & Xero. Therefore, your initial decision moves to determining whether you want a cloud-based system or one local to your PC. For me, that’s a simple decision with the cloud always coming up on top.
As everyone is in the business to make money, the majority of focus needs to move to the Sales & Accounts Receivable process and the sub-processes contained within. By walking thru each sub-process one-by-one, you will then determine what is required for you to research that area deeper. One example is if you are a retail store (online or physical) that operates in multiple jurisdictions, then the sales taxes sub-process is area that needs to be on your radar. Or if you are an electrical repair company that has multiple vans on the road, then a scheduling & field services application is something that you may need in order to operate in the appropriate manner.
Those simple tasks above will help you move in the right direction of what specific systems you will need to research further, or to bring on a consultant with requisite knowledge and experience to help you with the decisions needed around bookkeeping. Ready to get started?