Keeping a computerised accounts system simple, sometimes means writing stuff down on paper first

My method of setting up a companies computersied accounts systems is to also set up two red books. That is the Hard back red coloured analysis books. In one you record the money you received and in the other the money you paid out.

Why, you may ask, if you are computerising your accounst system do you need to write it all out. Is it not being recorded in the accounts system?

Yes it is being recorded in the accounts system. But how do you know if all the cheques, direct debits, standing orders, customer cheques, customer transfers have all been recorded in the account system. You could do a bank reconcilliation, but many people don't know how to do it or even know what it is. It may be some time before you find an error or ommission and this could have a significant affect on your accounts. And as a non accountant which do you prefer, a hand written document or a computer printout listing all payments made. You can look over a book and you don't need to request a printout from anyone, just pick up the book and go.

The other good thing about books, it is easier to teach someone how to record the date a cheque was written, who it was written to and how much it was for and get them to write it in a book. You dont need to teach them how to enter it into the accounts system. Your records system still continues until you are ready to enter the cheque into the computer system.

Another advantage of a book is that you can write all the cheque numbers in sequence and see at a glance is a name or an amount missing. Try this on a computer system. A missing cheque does not show at all.

The above applies to most Small and Medium sized companies. It keeps your business ticking over by ensuring that no matter what happens to your computerised accounts system or the people who run it, you will still have two red books recording money in and money out. So unless paper and ink disappear you will always keep things moving and even you can write into the books.

For help on setting up these red books see

www.help4accounts.com