Improving the integrity of the data within your accountancy software (BN6)
Hello, my name is Eve and today I am going to discuss the importance of recording and maintaining accurate data within your accountancy software.
This is best understood when one considers that most businesses that have gone into liquidation have had “trouble with their accounts.” Another interesting perspective is that the top 100 FTSE companies have a 99% understanding of their accountancy software.
It is not known how much small and medium-sized businesses understand about their accountancy software, but one suspects that is significantly less. I suspect that many businesses have an accountancy software knowledge gap of circa 30% to 40%. This poses a serious risk to the business.
In some ways this is positive; as the act of learning to use software correctly is relatively simple and every step forward should help you improve your management decisions and profitability.
To improve the integrity of your accountancy data, it is necessary to ensure that every act and every decision that has a numerical value is recorded within your accountancy software. This information must then be checked and verified for accuracy. This is the basis of the common or garden stock take.
So does the theoretical value of the stock on the computer match that of the physical stock in the warehouse. If not why not. Has an item been stolen, has a delivery note not been raised or is an invoice missing or has someone accidentanly mis keyed a value.
This leads us onto computer and software errors. Believe it or not, software, especially that that has been linked to other software such as E commerce web sites can alter or corrupt data. The consequences are indeed serious and so it is worth test buying products from your own web site frequently.
Finally; the integrity of data within you business is closely linked to various other topics such as creating an accurate administrative and accountancy process and understanding management accounts. We have therefore created a suite of videos that will hopefully help you in your journey.
Thank you for watching this video. Please share this link 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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