A decent accounting program is the cornerstone of any business these days.

It’s that first building block and can make things harder or easier.

But, like everything, it costs money and many new businesses just don’t see the point in spending the money when they could be putting that money elsewhere, like into getting more customers or materials etc.

YOUR RECEIPTS

Once upon a time, books were balanced manually… then as computers became a bit more common place, excel revolutionised the playing field, and it allowed errors to be fixed and things to be updated easily. But then that was before GST.

Programs like MYOB entered the scene in 1991 and totally changed the game. But, there was a huge problem. These systems were upgraded and became increasingly more difficult to use and tax laws were harder to keep up with and it all just went into the too hard basket.

In 2006 Xero exploded onto the market, offing a fully cloud based system with an easy to understand interface and it has left some people divided. There are those that think that because it looks easy, it is and then there are those that still can’t be bothered with the whole thing and the receipts just keep going into that old shoe box.

THE PROBLEM

The issue here is that if you don’t have some kind of assistance, you could be missing out on some of your rightful entitlements, or worse, missing things that mean you owe the ATO or can’t get an accurate reflection of your business position. When you finally do ask for help, the initial cost will be higher because what was likely a small fix, is now a larger issue.

So now, not only do you have a backlog, but you probably don;t know how you stand and if you wanted to approach a bank for a loan, you will have some explaining to do.

THE SOLUTION

A good bookkeeper and a good accountant who ;gets’ you in your corner FROM THE START, will save you pain in the long run. Start your business off on the right foot, planning to select a good accounting system and great support from the outset.

THE CORNERSTONE

The two major players in the market right now are MYOB and Xero. For me, Xero is as good as it gets and I love working on it and with it… whereas I am not a fan of MYOB. I remember what it was and in my humble opinion, it hasn’t evolved much. Though, you need to look at all your options and the relevant add-ons (because this will become important as your business grows) and decide for yourself.

NEXT STEPS

Selecting your bookkeeper and accountant can be the tricky part, but if you are not a sole trader then it is likely that the first thing you did was locate a local accountant to set up your business and documents. If you have a good relationship with them, start by asking for a recommendation. Also look at the Australian Bookkeeping Network Registers or even post on socials asking for a recommendation. How you get the names isn’t particularly relevant - it is what you do next that matters.

In a word: INTERVIEW.

Don;t just go with the first one. Get to know the person a bit, interview them and be prepared that they will be interviewing you as well. The people you select will be helping your business thrive and they need to care and be present for you in your business. It might take a while, but it is so important that you take the time to really get involved in this step!

It is also important that you are fair to those that you do end up engaging. Remember, they work WITH you - not FOR you.

ENJOY THE PROCESS

It sounds silly, because it also looks like HEAPS of work, but honestly, this is a great opportunity for you to get out there and expand your professional network while you are hunting for that perfect fit for your business.