“It’s on my phone so it must be right!” said a client of ours recently.
And it struck me that because we use our phones for pretty much everything, we tend to assume they tell us the right answer all the time.
But perhaps your smart phone is not so smart after all – or perhaps the users aren’t!
I’m talking here about the phone apps that accompany cloud accounting software packages such as QuickBooks and Xero.
They’re an extension of the software you can also access from a laptop, PC or tablet.
They let you carry out data entry on the go, such as new purchases and sales invoices, and access some reports, such as the Profit & Loss report my client was looking at.
Apps are the way of the world and it’s Canute-like to think this technology is going to disappear. It isn’t.
So the trick is to understand and use cloud accounting apps properly.
It is if you use an app such as AutoEntry which allows you to take a photo of your receipt and will code it ready to be imported into your accounting software, along with the PDF of the receipt. You have to keep the receipts as proof of business expenditure and to reclaim any allowable VAT and AutoEntry will make this record-keeping very easy.
Also, use your business debit card (don’t leave home without it) to pay for everything and then the transactions appear on your bank statement. So even if you don’t get a receipt or can’t get one (TFL) you still don’t miss the expense because it appears in your bank account.
Visit our bookkeeping for your business page to learn more about how we can work on reducing your data entry time.
Yes, you can create sales invoices on the move. But you don’t want to get them wrong because that will delay payment and may damage your reputation with your client.
And think of the client – do they want or need your invoice right here, right now?
Not always.
Two aspects to this – “everything” and “correctly”.
Miss something and your profit is wrong, whatever your phone tells you.
Our experience is that users of cloud accounting apps and cloud accounting software, such as Xero and QuickBooks, need some help and training to get things right.
Cloud accounting software continues to be marketed as being everything you need, easy to use, do it yourself etc.
Well so is a Delia Smith cookery book – and you really don’t want to see my attempt at a soufflé!
Every transaction has to have been accounted for correctly (including transactions such as depreciation and corporation tax) for the profit to be correct.
Otherwise, it’s wrong.
Our client’s profit was not what his smart phone told him it was. It turned out the profit was a little higher, but it isn’t always like that.
We run practical Xero and QuickBooks training sessions help many businesses get just what they need out of their cloud accounting software. We use your live transactions to show you / your team how to use your chosen software more efficiently and how to get useful financial reports from it to help improve business performance.
Embrace cloud accounting software and cloud accounting apps but just take the time to really understand how to use them in the best way so you don’t mistakenly end up thinking you’re richer than you are.
Until then, don’t believe everything your phone tells you.
You’re reading this on your phone, right?
Michael
Related links:
Part Time CFO – if this is the solution, what’s the problem?
Outsource your financial management
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.”
