Bookkeeping software is important for the success of your t-shirt business. If you missed the first part of this two-part series please read that first!
Now that we know what options you have for bookkeeping, let’s take a look at some things to think about when choosing a viable software option.
Doing your own bookkeeping shouldn’t be dictated by the financial savings. You should also consider the fact that you will have complete control over all your company’s profits and cash flow, making you more knowledgeable about your business. Not to mention, any problems or questions that arise can be solved by you!
One reason so many people turn to accounting software is for managing VAT returns. This can become a complicated area of accounting and having the assistance of a capable accounting software makes it much easier.
Spreadsheets can also be setup to manage VAT, however once again this is more difficult and time-consuming than simply getting a software that is programed to do so.
Where you keep you bookkeeping software is very important.
Keep in mind that you want it in a place where you have easy access to it, however your accountant will eventually need access to the software as well. A good rule-of-thumb is to keep the software on your work computer. This way your accountant can later come to your location or you can send a digital backup copy of your records to your accountant (all accounting software allow for data exports).
After your export, the accountant can then import your data into their own computer and make end-of-the-year adjustments. Remember that you should agree to this form of data transfer with the accountant prior to doing so. Also, you should keep your own personal backups of the data.
The ideal situation would be to share access of your bookkeeping software with your accountant. Remote desktop solutions are the best option for this. Remote desktop software allows you to give external parties access to your own computer. This way, no one has to leave their own computer, but your accountant can review your bookkeeping.
Sage and QuickBooks both offer online services and you can also host the software on a secure server.
With these options you should be well on your way to smart bookkeeping for your t-shirt business. If you have any questions, please let us know!