A colleague commented “this is bookkeeping in the 21st century” and here’s why she said it.
We have a client that sells household goods, mainly online, and we noticed that money was coming in from a new online sales platform, which happens to be based in France.
We see this from time to time – businesses find new routes to market and new platforms to sell from.
And we need to understand what’s going on. Not least because you can be pretty sure that the money we see coming in to the bank does NOT constitute just one complete sale.
One thing you shouldn’t do at this stage is think:
“I know! let’s connect the online platform app to the cloud accounting software.”
Here are some of the common steps to negotiate before you can do any bookkeeping.
Pro tip: make copious notes as you go
Step 1 – get access to the online platform and look around for reports which will tell you all you need to know about the sales made
Step 2 – download the report(s) you need
Step 3 – delete a lot of columns you won’t need
Step 4 – figure out the currency of each transaction and the GBP equivalent
Step 5 – figure out if the platform has deducted its transaction charges from the value of each sale
Step 6 – figure out if the platform retains any money on some or all transactions for a period before paying it over
Step 7 – determine which sales transactions comprise each pay-out you can see in the bank account
Step 8 – do the correct accounting. This will most likely be a sales invoice or sales receipt, with the correct VAT treatment and with a deduction for transaction costs.
Step 9 – match the money in the bank feed to sales invoice or receipt
(There may be more or fewer steps depending on the exact circumstances.)
It might be that the platform has an app that talks to the accounting software and it does everything perfectly.
Reader, that’s unlikely.
You may well be able to automate the work you do when you download the reports you need – take a look at Microsoft PowerQuery and / or build a nifty workbook that has formulas and pivot tables that take you from what you start with to what you need for your bookkeeping.
Having created the exact output you need in the workbook you may be able to import it as a CSV or PDF into your accounting software
Why the comment?
We live in an age of technological change where new products, platforms and services spring up all the time. Businesses will innovate, try new things, do things differently.
This will give rise to new transactions, coming from different sources, often with data that isn’t oven-ready for bookkeeping.
So bookkeepers, accountants, finance teams – they all need to be alive to new transaction streams. And when they come across them they need to:
You shouldn’t let your business be held back by bookkeeping and accounting that can’t keep pace and this blog is all about helping finance teams to keep up.
Bookkeeping in the 21st century certainly requires a greater level of agility than was required in the past.
But – don’t be seduced by every shiny, new, bells & whistles bit of technology. Not everything is useful or necessary and you don’t want your business to collapse under the weight of all the apps that are hanging off it.
We meet a lot of CEOs who are frustrated by the lack of useful financial information flowing through their organisations and, consequently, we do a lot of work helping organisations with finance transformation.
Can we help you?
Let’s have a free-of-charge chat about your business – call Michael Austin on 020 7125 0270 or email info@bluedotconsulting.co.uk
Michael
Related links:
Technology is the servant not the master
You can’t run a £1m business and only have your bookkeeping updated every three months!
Chartered Accountants – Bedford House, Fulham Green, London, SW6 3JW
We don’t believe in forms, we believe in talking to people, finding out your needs and tailor-making a solution just for you.
Give us a ring on 020 7125 0270 or email us at info@bluedotconsulting.co.uk
“Michael and the Blue Dot team have been an essential part of our journey from startup through to being an established company, and we look forward to continuing working together long into the future. They have always been on hand to offer support and sound advice whenever it is needed.”
“Blue Dot have been our accountants and bookkeepers since the very beginning of our business, and have been nothing short of outstanding throughout.”
“Blue Dot Consulting went above and beyond in helping us navigate not only the transition to cloud-based accounting but also in leading our accounts team through a broader period of transformation.
Their deep understanding of our unique needs and challenges was evident from the outset. They provided unwavering support to our team, ensuring they felt confident and well-prepared for the changes ahead.”
“Thank you again for your help and training so far – it’s honestly been invaluable.”
“I’m no expert but it has been transformative the help and advice I get from Michael and his team.
Michael was fantastic. He quizzed me on how my business worked financially and was super patient with me. Explaining everything in a non-accountancy manner. He then showed me how to utilise all the less obvious tools in the program, which he continues to do, so that I can see immediately what monies held belonged to my company and what is held for clients. I now do my own VAT returns and payroll because of his help and continued support.”
“I really enjoy working with Blue Dot Consulting — they’ve helped me take control of our financial situation in a practical, no-nonsense way.
They take a common-sense approach and, most importantly, they get things done. For example, we now have weekly planning and forecasting calls, along with monthly cash flow reviews using simple, easy-to-understand spreadsheets.
Their support has made a huge difference in how we manage and plan for the future.”
“As the business owner, it can get lonely making all the decisions. I feel I have a ‘silent FD’ that I can call, challenge and that any idea is OK to discuss, and to arrive at a sensible way forward.”
“Having someone in the room that is happy to (in a structured way) challenge the norm and not simply accept that, because things look good, we should stop looking to improve.”
“Blue Dot are uncompromisingly systematic and thorough so that you can get on with running your business.”
“Outstanding service and support. They get things done, just what you need. Recommended.”
“It was the genuine level of care and interest in what we do as a business.
The regular check-ins and the effort to ensure the systems they’ve implemented are working for everyone stood out.
It felt like more than just a service, it was a partnership.”
“I’ve been delighted with both the service and expert advice I’ve received from Michael and his team. They take the weight off my shoulders when it comes to my business’s financial requirements, allowing me to focus on building and managing the company.”
“We are a small organisation with no in-house financial expertise, so it’s a huge weight off my mind knowing that I can rely on Michael and his team to take care of everything.”
“I can wholeheartedly and highly recommend Michael and his team at Blue Dot as an exceptional accounting firm. They put my mind at rest knowing I am in excellent hands.”
“Michael and the team are my saviours. Always helpful, approachable and reliable. They show an interest in my business and give excellent advice and recommendations. Above all, they are highly likeable and fun to work with.”
“They went above and beyond in helping us navigate not only the transition to cloud-based accounting but also in leading our accounts team through a broader period of transformation.”
“You guys are brilliant. It’s been a challenging few weeks facing up to the issues but I do feel positive towards them now and I feel a weight has lifted from my shoulders. I am honestly so thankful!”
“I was a little apprehensive about working with a new accountant but I didn’t need to worry – I have found their approach to be friendly, genuine and they go above & beyond to help.”
“Michael’s straightforward, practical and tailor-made approach was perfect for me and our business.”
“Blue Dot have been our accountants and bookkeepers since the very beginning of our business, and have been nothing short of outstanding throughout.”
