1. Consult your accountant! Grants may be available for training.
  2. Decide on starting date, consider trial period.
  3. Set up nominal ledger accounts, Balance Sheet and Profit and Loss Layout.
  4. VAT- Accrual or Cash Accounting?
  5. Are departments required for sub analyses?
  6. Use a dummy company for practice (Multi-company systems only).
  7. Obtain starting trial balance.
  8. Obtain starting Sales and Purchase Ledger balances.
  9. Enter Trial Balance by journal entry.
  10. Enter Sales/Purchase account code, names, addresses, etc.
  11. Enter Sales and Purchase Ledger balances by posting directly to Sales/Purchase control account.
  12. Enter live data:
    1. Sales and purchase invoices
    2. Cash received
    3. Cash paid
    4. Petty cash
  13. Consider the need to keep manual records for at least three months and Cash Book for full year.
  14. Reconcile Bank Statement with Cash Book and Computerised Bank Control Account.
  15. Consider direct production of Sales Invoices.
  16. Keep a backup disk for each of the five weekdays. Keep a weekending backup off the premises. Many businesses backup using “Cloud” based systems these days for additional security of data.

Apps

The move to cloud-based software has led to significant growth in other ancillary products and services which link into the accounting software. No longer is it necessary to print out supplier invoices, pass them for manual entry into the accounts and file them away on the shelves. These can now be sent to a software product for automatic data extraction and coding, and the details end up in the accounting software, together with a copy of the invoice which is viewable from within the accounts system.

Similarly, there can be automation in other areas; chores such as debt chasing, bank reconciliations etc. Reporting can also be automated too, with automated “alerts” when something is good – sales exceed £100,000 for the month, or bad – the overdraft limit has been reached.

Benefits will be mainly a business that you manage – instead of a business that manages you!