Recently at Tandem we took over the bookkeeping for a limited company who had previously employed an internal bookkeeper for over 20 years.
The accounts were in great shape and up-to date. However, the accounts were in Excel only and were sent to the accountants annually for end of year accounts.
I have to say, that these were the best set of Excel spreadsheets I have ever seen, very detailed, bespoke and accurate. The previous bookkeeper on average spent 40 hours per month on the accounts. On a monthly basis many invoices were to be raised, and this process took about 6 hours alone per month.
How we replaced the old spreadsheet driven accounting
After an excellent handover with the bookkeeper, we got to work.
My initial quote was for 20 hours per month, as the company was keen in going digital and having cloud accounting. As the spreadsheets had all the required data the set up of this was extremely easy and took no time at all.
With all tasks completed as previously, our first month we completed 12 hours of bookkeeping. A reduction of 28 hours per month.
Enhanced and faster reporting
On a quarterly basis the budget and forecast are presented to the board for approval. Previously the CEO and Admin clerk had to glean the information from the spreadsheets to present their reports. On average this took about 2 days.
With the new cloud accounting software being used, the reports were there, just waiting to be printed!
Reducing those late payments
Credit control had always been a bit of an issue, and late payments were not very easy to follow in the spreadsheets as set over a few pages. The cloud accounting software updated the Aged Debtors as soon as the payment was reconciled, so one report made life a lot easier. This also working alongside bank feeds into the software, there is no more waiting for bank statements to see who has paid.
Improved and faster data
On average we now complete around 10 hours per month bookkeeping for this client. They have reports at their fingertips and can access information with a lot more ease. The accountants are also happy that they will not be receiving the year end in Excel!
Overall, we have saved the company around 30 hours per month in bookkeeping and significantly reduced the time spent collating reports for the board and accountants. Late payments received have reduced dramatically as invoicing is now on a timelier basis and a robust credit control system is now in place, using the available functions of the software, e.g. Setting up reminders to be sent prior to payment date.
Concluding thoughts
On this occasion we were lucky. The accounts in Excel were immaculate and had been shown much love for over 20 years. If they had been in a poor state the set up would have taken considerably longer!
But the time had come to upgrade and use the technology that is available and employ the services of a bookkeeping company to bring the accounts into the 21st century.
How Tandem can help your upgrade your accounts
At Tandem we believe that employing the services of a good bookkeeper will eventually pay for itself!
If you would like to find out how we can help you and your business get your accounts streamlined, whether you’re a Sole Trader or a Limited Company, just book a free call with us today.