Common Bookkeeping Software Mistakes To Avoid To Save Time And Money

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UK bookkeeping software has rapidly risen to fame for its ability to streamline business processes, not just in accounting, but across the organisation. It has also earned a reputation as a useful tool for improving profitability by improved productivity, fully informed decision making and cash flow efficiency.

If you have decided to migrate to UK bookkeeping software, it is a good thing that you are doing a little bit of research. Although bookkeeping software is not an expensive proposition, you do want to make the correct choice to avoid delaying your access to its world of advantages.

When it comes to the UK borrowing money bookkeeping software access, avoid elitism because the majority of the data entering load falls on the lowest rungs of the organizational hierarchy.

12 common bookkeeping software selection mistakes to avoid:

  1. Getting too few log in IDs

Especially because bookkeeping software is aimed at increasing productivity, you must ensure that work is not held up because the team needs to take turns using the software.

Besides, you get economies of scale when you purchase a higher number of login IDs. For example, where a Dext package for 5 login ID might cost you GBP 20, for just twice as much, you can get four times the number of login IDs, that is 20 login IDs for GBP 40.

  1. Not extending the software to lower rungs

Avoid practising elitism when considering the UK bookkeeping software access because most of the data entry burden is borne at the lower rungs of organisational hierarchy.

That said middle management might need access for reporting and expense approvals while upper management could use the system’s analytical insights.

  1. Getting too many login IDs

If your team works in shifts, you only need the number of login IDs that will be used simultaneously during the same shift. You need not get a higher number of IDs than you need because most solutions providers will let you upgrade when you need them; alternatively, you can simply purchase another package when you actually have more users.

  1. Choosing entirely free over nominal charges

Solutions providers who offer their UK bookkeeping software to you entirely free, do have to make up their costs from another avenue. This means distracting advertisements and very often, you will arrive at the frustrating conclusion that the functions that you actually need are out of reach, behind a paywall.

  1. Neglecting data readiness

You must ensure that data is in the correct format for it to be imported into the software. This does not only pertain to the file type but also to numbers of characters in descriptions, date formats, currency and other such intricacies.

  1. Selecting the wrong time to migrate

From the above point, you will have gathered that you might need some extra time to get your data ready for your UK bookkeeping software to take over. In addition, you’ll need to check data integrity once the import is complete and you’ll need to test that the software is working as it should. It might therefore make sense to plan to switch for a less busy period than the financial year-end; perhaps the end of the first quarter would be more optimal.

  1. Failing to try the software

Most solutions providers are confident of their products’ usefulness and will encourage potential users to opt for a free trial. Take it! Toggle the various options and be sure that it serves your purposes. Get a free trial of Dext bookkeeping software here: https://dext.com/uk

  1. Skipping demo and training

Opt for a product demo for a select few to pass on, or for the whole organization. Even tech-loving millennials can be resistant to new tech if it isn’t entertainment-based or creatively inclined. The words bookkeeping software are not going to fill people with excitement and anticipation – show them how it can make their lives better.

  1. Not customising your dashboard

Every business has a unique set of KPIs that business heads would want to keep an eye on, or reference when making decisions. Be sure that your accounting software gives you the option of customising your dashboard and be sure to select metrics that will empower your decision makers.

  1. Not adopting new SOPs for expense reporting

Most UK bookkeeping software come with a partner app that lets you access your dashboard and your data from your smartphone, on the go. This data is live and updated – to the extent that updates are being given to the software. If your people are not uploading payables and receivables on time, your data will remain outdated despite the system’s best efforts. Announce new reporting deadlines; offer incentives for early reporting and penalties for missing deadlines.

  1. Being tardy with tax deductibles

Receipt-scanning software can extract text that is visible. Moreover, the system is able to extract data from a smartphone photo within seconds. Upload tax deductibles immediately.

  1. Not linking your business bank account

You’ll enjoy much better performance, seamless data flow and error-free data I’d you link your business bank account to your books.

Are you looking to use bookkeeping software now? Use this checklist to be sure that you zero in on the right UK bookkeeping software.