Small business owners need to understand their accounts. Sure you can delegate it to a staff member or outsource it to Admincorp or even leave it in the capable hands of your accountant.
Whatever way you chose to do your accounts, you still need to have an up to date overview of your creditors, debtors, bank balance, cashflow and upcoming budget.
An ideal relationship between business owner and accounts person is where the accounts person enters the date, reconciles the data and reports on debtors, creditors, reconcilations and profit and loss amongst other reports needed for specific companies, projects or business climates.
This is where things come back to the business owner. Your accounts person (whether its a staff member, outsourced solution like Admincorp or your accountant) cannot do the job if you haven't given all the information required. So ensure you pass on the information; banks allow dual secure access to accounts; creditors and debtors can email; mail can be managed; etc to allow for this.
Now that have ensured all information is going to your accounts person, you can see at a snapshot how good or bad the company is doing, who owes you money, how much money you owe, how much money you need to stock up for christmas etc.
Here are some ways of working better;
for larger companies, employ a full time accounts person to manage this section and report to you for smaller companies, outsource the accounts to companies like Admincorp so the accounts can be maintained daily or weekly and the company reports back to you and also reports on any anomolies or suggestions
Admincorp does not recommend business owners leave accounts up to their accountant or outsourcing company totally. Business owners have to have this knowledge within the company at least weekly so high's and low's can be managed effectively.
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