You are in the process of starting your own business.
What do you need to consider in terms of accountancy software?

For any business, the following financial controls are important. First, you must be able to generate sales invoices for services or product delivered to your customers. Secondly, you must be able to record purchases of services or products from your suppliers. A third control which is important to any business is having an accurate picture of trade debtors and creditors. It is often said that “cash is king” in any business.

Being able to record payments received from debtors, and payments made to creditors is an imperative, as is reconciling your bank account to bank statements. Finally, if you are registering for VAT, you need to understand if your business will have a VAT liability or it is due a refund from the Revenue Commissioners.

What additional controls do you need within your business when hiring new staff?

You will need to purchase payroll software to manage staff salaries/wages. Either that or you need to outsource your payroll administration to a 3rd party bureau. More importantly, as a business owner you need to ensure your company meets its liabilities for PAYE & PRSI to the Revenue Commissioners.

You want to track costs by expense
type within your business.

The answer is yes!! It is important to allocate purchase invoices to the correct nominal code when they are being posted to the creditors ledger. You also have the option of running a P&L Account, which will show the total costs allocated for a specific period or year to date.

What are the other issues you will need to consider when considering accountancy software for your business?

For starters is it possible to run aged debtors and creditors reports. What about running a trial balance for your business? A trial balance will show you turnover and costs, plus assets and liabilities within the business. Can you set up and run dashboards to monitor key performance indicators within your business?

Having KPI’s in place will allow you to proactively manage your business and ask the right questions of the right people.