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How much do you really know about accountancy software? - it is the heart of the business

Video Bn7

How much do you really know about accountancy software? - it is the heart of the business (BN7)

The importance understanding your firms accountancy software is best understood when one considers that most businesses that go into liquidation have had “trouble with their accounts.”

Trouble: from my experience generally stems from a basic lack of understanding of what the firm’s accountancy software was designed to do.

Another interesting statistic is that the top 100 FTSE companies have, as one would suspect a 99% understanding of their accountancy software and are aware of the risks inherent within the system. These companies frequently audit themselves and use their management accounts on which to base their decisions. These companies are of course generally healthy, stable and extremely profitable.

The knowledge base of small and medium sized businesses pertaining to the use of their accountancy software is not known, although from my experience there is a significant gap in their Sage / Xero knowledge and hence a risk.

But now things become a little more difficult. Because we are conditioned to believe that computers and accountancy software doesn’t make mistakes. Well I am afraid that they do; sometimes humans are the cause and sometimes conflicting software is the cause.

If the numbers within your accountancy software do not reflect the actuality of the business, then you have a major problem.

But there is some good news. You see by improving the knowledge of your accountancy software you will be aligning your company with the best businesses in the land.

Whats more; the act of learning to use your software correctly is relatively easy. We suggest to our clients to approach the topic with the adage of I don’t know what I don’t know, as by opening your mind to features and functions there is very good chance that you will.

There is one important footnote here.

The financial services sector is heavily regulated and chartered accountants will have demonstrated that they can provide genuine expertise within their field. The same does not apply to those that teach computerised accountancy.

Business Nirvana therefore urges anyone seeking to achieve a greater understanding of the features and functions of their accountancy software to seek an expert in their field.

We advise that a specialist consultant should have an outstanding business and accountancy pedigree; not to give accountancy advice as that is the role of your chartered accountant; but to have absolute knowledge of the accountancy, administrative and software processes as someone who has full competency in this area can help the client business attain the same.

Such a person should therefore:

  • Hold an honours degree in accountancy and finance.
  • Hold the highest level of Sage Proficiency available. In the UK this is one of a handful of Sage Accredited Accountant Partners.
  • Be proficient in Xero.
  • Hold the appropriate 7303 teaching qualification.
  • Provide a disclosure & baring service (DBS) check
  • And have at least five years, experience in managing accounts at a directors level.

Needless to say several partners within business nirvana hold such credentials, and can help you to create an accurate administrative and accountancy process.

Thank you for watching this video. Please share now if you think that it could be of use to others and if you have any questions please do not hesitate to ask?

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