Small Business Start Up Finances Guide
Step 11 – Decide on Your Method of Formal Account Reporting
Your options here include:
- formal sofware like MYOB, Xero, Quickbooks
- just use the bank accounts themselves
- do not setup anything and end up with a mess that somebody will need to fix.
The best choice depends on your own particular needs but just some issues to consider include:
- What will your accountant require at tax time? Most ask for one of MYOB, Xero or Spreadsheet – but what’s more, its often cheaper if you do it that way (because it takes your accountant less time).
- Complexity. Any of the following usually means its a good idea to use Bookkeeping software (or at least a spreadsheet):
- Many transactions each month
- Multiple accounts (eg 2 bank accounts or use of a credit card)
Xero is a cloud based software that enables auto transfer of transactions from bank accounts and credit cards into your Xero account. Then its an easy process to set up rules and enter the transactions. To set up a free trial of Xero, Contact us.
- Time management. You need to decide how important your time is and what you like doing with it.
If you are happy to spend your time entering transactions from your bank account into a spreadsheet or bookkeeping software, then go with one of those options.
What is certain is that the best option is NOT to defer action until later, which just causes more problems and time.