Accounting,Templates,for,Small business, insurance Accounting Templates for Small Businesses – Right or Wrong?


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Accounting TemplatesforSmall Businesses – it is easy and inexpensive to use accounting spreadsheets butare they the correct choice? We all know that there is a legalrequirement to maintain accurate accounting records covering your businesstransactions. The tax man, the VAT man and a miscellany of complianceregulations means that accurate bookkeeping records are essential. Notwithstanding the above, keepingcorrect information is vital if you want to run your business successfully and effectively. But, how to do it, and which method touse, is a problem for many new and growing small businesses. Many years ago, there was only onereal choice, your bookkeeping records were kept manually with Cash Books andLedgers to help you organise records. Even today many small businesses stilluse handwritten records even though they can take up a significant amount ofyour business time and it is very easy to make errors. Accounting Templates One of today's alternative tohandwritten ledgers are, Accounting or Bookkeeping Spreadsheets. You can easily set up your bookkeepingspreadsheet to record and analyse your business transactions, you arrange yourdata in columns and rows, and, using the spreadsheet functionality, all of yourtotals will simultaneously calculated. However, this method is no better thanhandwritten records, it is still prone to errors which may go unnoticed, and ifno reconciliation procedures are carried out, then your data will be inaccurateand misleading. Accounting Software So, the obvious choice must be to useaccounting software. Here, you only need to record yourtransactions once and all the corresponding entries are performed automatically.This enables you to maintain a check on your customers and suppliers, VAT isdealt with automatically and most systems will prepare a number of usefulaccounting reports. However, in my experience, the use of proprietaryaccounting software can have some drawbacks for new and smaller businesses. Firstly there is the issue of cost. Accountingsoftware is relatively expensive and an annual maintenance contract is oftenrequired, which can add significantly to the cost. Secondly, Small Business Accounting Software is usually designed with a 'one size fits all'philosophy, and in an attempt to match the software’s functionality with yourrequirements, the developers compensate by having complicated set up routines. Great,if you understand what you are doing, but potentially disastrous if you get itwrong. So, it is essential that you obtain professional help to minimise theseproblems. This again increases your costs. Thirdly, in my experience manybusiness people find that even the most basic accounting system is too complicated, and, if they do not have good bookkeeping skillsthey will fail to use the system correctly. Isthere a solution ? There appears to be little choice for manysmall businesses (those with less than 100 transactions a month).  The requirement is for an inexpensive, easyto use, easy to set up and easy to understand bookkeeping template system. In an earlier article ‘Accounting Software – are accounting spreadsheetsthe answer for small businesses’ I examined the basicrequirements for small business accounting. I concluded that provided goodcontrol mechanisms were in place, then a well-designed accounting spreadsheetcould be the answer for many small businesses.

Accounting,Templates,for,Small

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