This is how you keep track of your finances. Don’t leave it until the year end and then have a rush to sort everything out. We will do this monthly or quarterly as you think best. We will also produce a short profit and loss as well as a balance sheet. This will be accompanied by financial analyses and commentaries to not only help you understand what has happened but also to help you see what will happen to the business going forward.
One question we often get asked is when a new business is started and the owner asks what system he needs to put in place. Our approach is very much what is sufficient unto the day. There is no need to go overboard with an expensive and complicated system. Indeed some small businesses can manage with just a simple cash book and analysis columns.
When you start to look at computer systems the one which most people have heard of is Sage and it is a good system. But it is expensive and a lot of small businesses will not need the functionality it brings. You can be up and running for a lot less. However the choice you make is important as the time and training needed is just as important as the cash outlay and can be a real impediment to change should you decide to switch at a later date.