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NGR's Blog

A weblog is an online, semi-personal journal offering the opinion and commentary of the authors.

Our blogs feature thought leadership on a wide range of business issues, with a particular focus on helping companies grow. Here you'll also find blogs about emerging technologies and career experiences from select employees. The opinions of the writers do not necessarily reflect the position of NGR on these subjects.

The top five accounting mistakes you can avoid with NGRERP

You can make faster, better business decisions to improve profits and cash flow with NGRERP. By integrating your accounts with your orders and inventory you can get real-time revenue and profit analysis. Our clear, easy-to-access reports show you where you're making money (and where you aren't) by SKU, channel and customer.

Accounts and bookkeeping tend not to be everyone's favourite aspect of running their own business. That's why we are bringing you the top five accounting mistakes which you can avoid.

  1. Bank reconciliation. Make sure you do it regularly! There can be no end of small amounts that get spent here and there that don't get properly recorded and cash ends up seeping out of your business. You need be monitoring these to make sure you know where your costs are. The NGRERP bank import function is a great way to do this quickly and easily.
  2. Receiving and dispatching of stock. If you're using cost of sales accounting for stock, make sure that the stock movements get recorded as soon as possible. As well as keeping stock levels up to date, the stock movement needs to be recorded in the correct period to keep the profit and loss report looking sensible. A large sale at the end of the month where the stock fulfilment isn't recorded until the start of the following month will skew your reporting.
  3. VAT return reconciliation. VAT returns should get reconciled in NGRERP as soon as they have been submitted. If you don't, you're at risk of the next VAT return you run being incorrect, or taking hours to sort out. VAT returns are quick and easy in NGRERP if they are run and reconciled on a regular basis.
  4. Bank accounts. Make sure all the correct bank accounts are set up and that payments are recorded in the right one. Bank accounts should be used to manage any pot of money – even those pots that you wouldn't normally think of as an account. For example, if you take credit card payments, then the merchant account where the money is temporarily held should be treated as a separate bank account. This makes your bank reconciliation much easier to manage.
  5. Payroll. This can be a bit of a mystery if you aren't a payroll expert! There is income tax, two types of National Insurance and sometimes pension contributions as well that all need to be taken into account and recorded properly. The wage bill often makes up a large proportion of a business's costs, so getting this accurately recorded in NGRbON is a must. Using a template journal will make entering this data much easier.

Make it a resolution to get your accounts straight this year!

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Monday, 22 April 2024