How to modernise your family business accounting

Taking the helm of the family business is an exciting time and an opportunity for you to put your stamp on its operations and future direction.

However, you may find that some of its processes are outdated – particularly if your predecessor held their position for a long time and was not focused on process optimisation.

We’ve helped many businesses reap the benefits of modernising their accountancy processes:

• Better cost-effectiveness.
• More accurate record-keeping and data protection.
• Easier compliance and submissions to HM Revenue & Customs (HMRC).
• Scalability for growth.

We know that approaching this can be a challenge, and that modernising your accountancy is best achieved steadily and strategically.

Assess your needs

We encourage all businesses looking to modernise their accounting systems to assess where they are currently at, what they need and what they want to achieve.

For example, if you currently store financial information locally on spreadsheets, there are a number of factors you need to consider, including:

• Is this the most cost-effective solution?
• Does this align with other software the business uses?
• Can I manage this on a larger scale if the business grows?
• Can I access all relevant information when needed?
• Is this the most efficient and time-saving way of working?

On the face of it, a spreadsheet may cost less upfront than a cloud-based accounting solution.

However, in our experience, cloud software will typically reduce costs further in the long term.

Additionally, a spreadsheet is unlikely to win out as the solution to the other concerns around scalability and efficiency.

This is where you need to assess all your business’ competing needs against one another and identify what you need your accounting set-up to achieve and what functionality it needs to have.

Build your app stack

Cloud-based accounting software can provide a tailored solution to an outdated financial system and meet a range of commercial needs.

We know from experience that the right software integrations and solutions can add real value to your business and transform your accounting processes.

As cloud accounting experts, we can advise you on the best apps and functions to meet your requirements, including how they work together and streamline your processes, such as payroll, invoicing, compliance, and bookkeeping.

This adoption of technology is widespread across businesses of all sectors, so it is a vital consideration if you plan to fully modernise your business’ accounting processes – particularly when it comes to changing legislation.

Your accountancy software and processes should also align with your long-term goals for the business, capable of scaling with growth and bringing all financial processes into one area.

Check compliance requirements

The requirements for businesses to store and submit their financial information digitally are growing. The rollout and expansion of Making Tax Digital (MTD) is a clear example.

You’ll need to understand exactly what your obligations are and what they are likely to be in the near future in order to optimise your accounting system.

We’ve seen many businesses that rely on spreadsheets and manual data processing adopt bridging software without thinking about wider process optimisation through compatible cloud-based solutions.

Our tailored cloud accounting services help you make sure that your accounting system actively supports your compliance requirements, rather than hindering them or requiring you to dedicate more time and money to these obligations than is necessary.

Modernise your business accounting with Butterworth Barlow

At Butterworth Barlow, we understand that running a family business comes with additional pressures – keeping the business profitable whilst safeguarding a family legacy to be passed on to future generations.

That’s why it’s so important to work with expert accountants who will not only handle your finances, but also act as trusted business partners.

We can help you modernise your accounting processes, get set up with tailored cloud accounting tools, and provide key financial insights to support your business growth.

Our comprehensive consulting service will help you select and implement the best accounting software for your needs.

As Xero Gold Partners, we often recommend Xero as a good starting point, and we have certified Xero accountants dedicated to helping you make the most of the UK’s leading cloud accounting solution.

Our approach to accounting empowers you with the tools and information you need to drive your business forward – and we’ll be there to advise you every step of the way.

If you’re ready to modernise your business accounting, contact us today for tailored advice and guidance.