There’s admittedly a lot of talk about bookkeeping software. And like a lot of things that get talked about a lot, there are some rumors, misleading claims, and misguided expectations from this handy little piece of tech.
If you’ve been asking around and have been met with mixed reviews; if you’re waiting to “see how it plays out” or if you’re waiting for someone trustworthy to tell you what bookkeeping software cannot do, alongside telling you everything it can do, we have got your back.
In this post, we are going to dispel myths around bookkeeping software so that those businesses who are yet to try it can go about their free UK bookkeeping software trial with more realistic expectations. There’s nothing more disappointing than having great expectations, only to have them not met.
In the sections below we’ll take misguided expectations one by one. As we dispel an unrealistic expectation, we’ll replace it with a more realistic expectation and offer you insight on how to use your bookkeeping software correctly to achieve your business goals. Let’s dive right in:
1. Bookkeeping software cannot magically set timelines for expense and reimbursement uploads
Bookkeeping software can help speed up the process by eliminating data entry. It does so with its receipt scanning feature that extracts only useful-for-accounting data from bills, receipts, and invoices. The user simply needs to upload a scan or photo of the source document and the software does the rest.
Bookkeeping software can quicken your approvals process by its at-a-click approvals or help you delegate it by letting you add expense approvers.
You’ll need to use these tools correctly by setting timelines and deadlines for expense and reimbursement submission. Heard of the carrot and stick approach? Opt for either a carrot (rewards) approach for immediate submission or stick (penalties) for late submissions approach or a combination of the two.
As for expense approvals, you’ll still need to get down to viewing the entries and either hitting approves or disapprove, or alternatively, you’ll actually need to get down to evaluating and appointing trusted parties as expense approvers.
2. Bookkeeping software cannot magically make your business more profitable overnight
Bookkeeping software can offer you live business insights and a helpful dashboard with all your business KPIs for better decision-making, not to mention spontaneous business insights. You’ll get the full picture and be able to make fully informed decisions. This “full picture” of your financial and sales data will be live because you can link your business bank account, CRM and even your Amazon or Shopify seller account, and your PayPal so that data from all these sources pertaining to your accounting books, inventory, and sales, is available at a glance
If you run a bookkeeping company, better profitability can be driven by utilizing the HealthChecker tool that allows you to know the state of a company’s books before you offer service rates and onboard them.
You’ll need to use this tool correctly by actually referencing and actioning all the amazing business insights at your fingertips and ensuring that data is indeed flowing seamlessly. You’ll need to set things up by doing the groundwork of linking various sources to your dashboard and so on. You’ll also need to periodically check all the spontaneous business insights delivered and avoid missing any, so as to get your money’s worth.
3. Bookkeeping software cannot magically make your data error-free – although it comes close.
Bookkeeping software can flag errors and anomalies for you or your bookkeeper or accountant to double-check.
Duplicates are automatically deleted from the system so that’s one big hassle sorted.
Additionally, because data flows from your business bank account and other sources to your books, the element of human error is eliminated.
You can test all of this and much more in your best free UK bookkeeping software trial!
You’ll need to use this tool correctly by hitting the Check button and scrutinizing errors flagged up by the system and verifying source documents for big-ticket expenses. Your accountant or bookkeeper must also check that data is flowing as expected and that no transactions are missed.
4. Bookkeeping software cannot magically and all-knowing deliver exactly the dashboard you need if you don’t customize it
Bookkeeping software can let you customize your dashboard as per your sector or niche of operation or go give you specifically the business KPIs that are relevant to your business’ unique pain points at this stage of its business cycle.
You’ll need to use this tool correctly by toggling with the dashboard until you are happy with the KPIs and the representation style chosen. In your free UK bookkeeping software trial, you must always check how data is presented and whether it is useful. For example, supply chain spending for October is not a very useful figure unless coupled with supply chain spending in prior months and perhaps, revenue earned during these months.
5. Bookkeeping software cannot magically sort and categorize data for you
Bookkeeping software can adhere to automatic supplier and customer rules set up by you. In the best free UK bookkeeping software trial, like say a free trial of Dext, you’ll see how up to 1400 suppliers can be linked and rules for worrying can be anything – tax, geography, specific product or service, etc. This is very useful in today’s dynamic world!
You’ll need to use this tool correctly by putting rules for automatic segregation in place.
Ben Stokes’ bat does not make him Ben Stokes. It is merely a tool in the hands of a person with great skill. Sure, the world’s best batsmen must all use premium bats but it is how they wield these tools of their trade that earns them fame. Similarly, accounting software is an amazing tool that modern technology has delivered to today’s businesses. However, its ability to deliver amazing productivity, professionalism, and profitability will amount to nothing if it is not used properly. Hopefully, this post has helped potential adopters understand how to ready themselves and their team prior to their free UK bookkeeping software trial.