Alan Butler is a director of A Butler and Company, chartered certified accountants, based in Derby, providing a personalised service to local business owners and individuals. Four Software Limited, 5A Darley Abbey Mills, Darley Abbey, Derby, DE22 1DZ, Tel 01332 200 604, Fax 01332 344329, Four Software Email bookkeeping@siteweave.net
In the past people hated keeping accounts. It was time consuming, and boring. People would write something in a book, but most of the time it did not mean anything.
Bank accounts were not balanced, because it was not something a lot of people understood. What do you do when you spend money out of the business account and it was for your own use? It was too confusing, that is why you pay your accountant.
That is true, but it also meant that a business person had no idea what the true financial affairs were for their company. Even, if they did have some idea, often it didn't make sense to them.
They would check their bank balance, and too often the balance showing either told them how much they could spend or how much they owed the bank.
But that has changed now. No longer is accounting a hidden secret, not when you purchase and use accounts software.
You see a product that will enhance your business but can you afford to buy it or not? Now you can know exactly what money is available to spend on that product.
You no longer have pieces of paper around your house and office with notes, pay this supplier by a certain date, or chase up that customer if they do not pay by a certain date.
You now have it all automated, as you check your debtors and creditors on a daily basis. Nothing is left to chance. Having accounting software makes you wonder how you ever managed without it before.
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