The secret to business success

16/01/13

Johnny Martin is a British Library Business & IP Centre Partner where he runs the Essential Business Finance workshop. He is also Head Financial Fitness Coach for Intuit makers of Quickbooks accounting software.

Find out his top tips about financial systems for business success.

Behind every successful business are good financial and accounting systems. Responsible for recording and controlling all the transactions, it can help tell you what’s going on now and forecast into the future.

You can do your own accounting and many entrepreneurs do it very successfully. However, what I always say in my Essential Business Finance workshop is that’s fine provided you are naturally neat and tidy and well organized. If not, you are best advised to get a bookkeeper.

BUT don’t think a bookkeeper is an accountant and while it is good to delegate, make sure you don’t abdicate responsibility. Bookkeepers need to be managed and checked up on!

So what about the software?

Many entrepreneurs start their business using an Excel spreadsheet and Word invoice template as the accounting system. It’s cheap, it’s technology that is understood, and gives the feeling of being in control.

However I meet just so many entrepreneurs who have found that after 6 to 9 months the Excel file is creaking and they need lots of manual intervention to maintain the system. If you’re using Excel, 2013 is the year to invest in a proper accounting package.

Online accounting packages have lots of benefits including an automatic back up of your accounts, working with colleagues in different locations and your accountant can be based anywhere then log in and help with queries. They can also be more efficient when it comes to VAT inspections and generating reports or invoices from anywhere in the world.

There are some free services, but typically you are looking at £10-30 per month depending on the functionality and size of your business. They are a lot easier to use than you might imagine and you will not only save time, but be able to manage your business much more effectively.

And if you are raising money – investors love well run businesses!