Brought to you by
Save content
Have you found this content useful? Use the button above to save it to your profile.

Is the best accounting software none at all?

27th May 2016
Brought to you by
Save content
Have you found this content useful? Use the button above to save it to your profile.

This month’s Accountex event was bursting with new and improved accounting software – much of it aimed at small business.

The government’s Making Tax Digital reforms have added an element of urgency to the issue of small business accounting: it is expected that over the next few years all small businesses will be exchanging information with HMRC via a digital tax account, and that these digital tax accounts will be populated with data from small business accounting software on a regular (at least quarterly) basis.

Naturally, the makers of accounting software for small business are eager to show why their solution makes the accounting process quick and easy (even fun) for small businesses. Yet, while all of these small business accounting packages boast impressive functionality, reasonable cost and ease of use, I wonder if they are slightly missing the point?

Evidence suggests that small businesses often lack the time and skills (and desire) to use accounting software properly or at all. Most small businesses don’t use accounting software now and, according to recent research, this won’t change much over the next couple of years.

As a long-term member of the accounting software industry, I am impressed by a lot of the technology I see at events like Accountex. The functionality and usability of most of the software is excellent, and the advent of cloud accounting has improved the ability for small businesses and their accountants to share information.

For those small business people who have the time, skills and desire to use “DIY” small business accounting there are plenty of good options to consider, yet I also understand why most small business still favour the “shoebox or spreadsheet” approach – and I think they are often wise to do so.

The beauty of the “shoebox or spreadsheet” model for a small business is that it is quick and simple. They leave the collation and processing of information to someone who is much better and much faster at it (their accountant) so that they can get on with running their business – albeit without access to up-to-date financial information to assist their decision making.

The picture is often not so rosy for accountants as they undertake boring, manual work which is often difficult to recover a good margin on. Furthermore, the accountants’ desire to provide meaningful business advice to their customers is hampered by their lack of access to up to date data.

The ideal scenario would be one in which the small business could avoid the need to use accounting software, yet their accountant was able to receive accurate, timely data in a format that enabled them to process it efficiently.

It is precisely this that we aim to provide with Bankstream. Small businesses, simply by transacting through their bank accounts, create a daily stream of data which is sent to their accountant. Their accountant receives this data through Bankstream software which automatically recognises and allocates transactions into their chosen accounting software.

For transactions where more information is required, Bankstream automatically compiles a list to send to the small business client who then provides simple, non-accounting, answers to questions – a process which typically takes about 10 minutes per month and requires no accounting or computer knowledge whatsoever.

Bankstream is one of a growing number of technologies on display at Accountex which offer to take accounting to a new level – one in which small businesses simply get on with plying their trade, while accountants, armed with constantly updated data and automatic processes, can get on with profitably plying theirs.

Frank Woods, General Manager UK & Ireland, Bankstream

Tags: