“Any sufficiently advanced technology is indistinguishable from magic,” Arthur C Clarke once said. Thankfully, if you are struggling with your small business paperwork, you can now pack away your Gandalf robes because Jason McFadden of McFadden Accounting says that advanced technology is now both mainstream and user-friendly when it comes to accounting software.
Approaching wizard status himself, Jason has seen the rise and rise of technology in his 30 years of accounting and remembers the day the first computer came through the corporate front door.
Now IRD is front-footing technology and, from 1 April 2018, will require businesses to electronically file their pay roll on every employee payday of the year.
The most popular accounting software packages are available for about $600 per annum. You or your accountant can run it, or a combination of you both. The cost can be offset through time saved at your accountant, but it depends on your business as to whether it really is a cost effective and suitable choice. “Firstly, always talk to your accountant before you decide to buy,” Jason says.
There are different features available, and part-time, low-transaction, or no-staff businesses can often do very well sticking with a simple cash book, while others keep organised with Excel.
Secondly, if you do purchase, get your accountant to help set it up for your business. Finally, learn how to use it properly and code transactions accurately, Jason says. “The principle of garbage in garbage out is fundamental to success with your software.”