Online banking making business accounting easier. With so many people now choosing to bank online and being able to see their banks statements each day, this can make business accounting much easier.
When running your own business you get caught up in the day to day running of your business, trying to sell your products and services. The one thing that can get put on one side is the general paperwork and accounts.
By using online banking and spending a few minutes each day you could end up saving yourself valuable hours later. Each day or week login to your statements and post the transactions to your accounting software, excel spreadsheet or records. You will then be able to check that your accounts are up to date if you ensure that the bank balance is the same as your records.
As a bookkeeper, I get asked often at the last minute to complete accounts for a business and get passed an envelope of receipts and invoices. Completing the accounts on a regular basis could even save this expense of paying a bookkeeper or accountant, as well as being prepared for how much you self-assessment or Corporation tax you will need to pay.
Online Banking and Business Accounting software
Many of the new accounts online software will also import your daily transaction automatically. One example of this is XERO. Once you bank login details are saved to the software, the accounts package will download transactions for you. All you then need to do is allocate the amount to an invoice or enter an account code e.g. Office stationery or car expenses.
Before signing up to any new software, try taking a demo to ensure that you can use the software. Also, ensure that your bank is compatible with the accounts package. If it can’t import the transactions automatically you may be able to export them from your bank and import them manually to your software.