So you’ve just started your cialis daily business and want to get your bookkeeping system right from the start, so what do you do?
We often get asked “what system should I use for bookkeeping?” – the answer depends upon the user. We don’t suggest a system that is best for us, or is future proof, but one that you will be happy with and will want to use. Very often, the system you use may change as your business grows. This article will highlight the extremes of bookkeeping and some of the advantages of each.
Manual Records
Contrary to popular myth, there is nothing wrong with keeping hand written books. This is especially suitable for a start up business or a business with a low number of transactions. If your business is simple, why make your bookkeeping complicated?
Excel/Word
One step up from manual records is computerisation. Excel is commonly used to record transactions as it can be easy to manipulate data, add columns, amend, set up templates, and Word is often used to generate sales invoices. As many people will have Microsoft Office, the advantage of this method is that it is cost effective and still relatively easy to use.
Please find attached some excel templates for using to record your business transactions. Two are based on the popular ‘Simplex D’ model, whilst the third is a simple template. NB these templates are provided for free and in good faith, and GBM Accounts holds no responsibility for any problems you may encounter after you download the files.
Accounting Package
One step up from excel is to actually use an accounting package like Sage or Quickbooks. This will involve the software being loaded onto a PC. This is starting to get into integrated ledger territory, so that the customer ledger, supplier ledger and bank ledger are all talking to each other. Also, sales invoices are often generated from the system so this reduces duplication.
Cloud Accounting
A development over recent years has been the use of cloud applications. These essentially emulate the accounting packages mentioned above, including the integrated ledgers, but are hosted on a website. This has some rather good advantages: it means no more software updating, automatic back ups, and access wherever you have internet access. Popular applications include Kashflow, Freeagent, Clear Books and Winweb.
The important things to remember are firstly, you should use a system that you feel comfortable with, but also that you keep it up to date.