Question: I have run a food production business for the past 40 years. Sales are fine and are about the same every year. We’ve always used invoice books and keep our VAT records on a spreadsheet. Our daughter just finished her business degree and recently joined the business. She said we need a better accounts system as we can’t keep gauging how we are doing by our bank balance. The system we use has not let us down so far, but I know we need to move with the times if we want to grow the business. What do you recommend we do to improve things?
Answer: Congratulations on 40 successful years in business – a great achievement. While your existing system has served you well, accounting has evolved enormously.
Invoice books and spreadsheets worked perfectly when things were simpler, but they can quietly limit your ability to grow. Your daughter isn’t saying something’s broke, she’s simply recognising that to stay competitive, you need better visibility and real-time information. Modern accounting systems don’t replace experience, they enhance it and help you see trends, plan cashflow and make smarter decisions.
Bank balance
If the account looks healthy, things must be going fine…right? Unfortunately, the bank balance only shows one moment in time. It doesn’t reveal what’s owed to you, what you owe suppliers, or how much profit you’re actually making. You could have €250,000 in the bank but owe €260,000 to suppliers.
Rising input costs and higher payroll expenses, especially with the coming minimum wage and auto-enrolment changes, make it more important than ever to track margins properly. A cloud-based accounting package gives you daily or weekly updates on how your business is performing and where costs are creeping, helping you track margins and ensure that your business stays profitable.
It doesn’t need to cost the earth
A cloud-based accounting package doesn’t have to be complicated or expensive. Think of it as another tool that boosts efficiency – much like a machine on your production line. The benefits include:
Real-time information – you instantly see monthly profit and loss and cashflow trends.Reduced human error – VAT returns and reconciliations are automated.Time savings – freeing staff from manual data entry.Better planning – reports for banks and grant applications are ready in minutes.Forward visibility – produce cashflow projections and identify seasonal pinch points.So what accounts system should you choose and why? For your type of business, a cloud-based solution is ideal. Popular options include Xero, QuickBooks, Sage Accounting and Big Red Cloud. These systems link directly to your bank account, removing the need to manually input transactions. They also allow you to email or scan invoices straight into the system, saving paper, postage and storage costs.
Invoicing and statements can be issued electronically, and the software can generate reports showing margins by customer or product making it invaluable for a food producer. Used correctly, you’ll know exactly which lines or clients are most profitable.
When setting up, involve your accountant. You’ll want everything right from day one – customers, suppliers, tax rates, digital invoicing and tracking categories all properly configured. Your daughter can help manage the setup and staff training,.
Costs vary from €35 to €100 per month, depending on features. Before you commit, discuss your needs with your accountant and the software provider. They can help tailor the system so you only pay for what you’ll actually use.
Benefits
My daily role is in management accounting and I have seen, first-hand, the benefits of modernising an accounting system. It brings efficiencies, focus and growth to businesses.
The cost of any of these systems is repaid multiple times in the many efficiencies generated.
After four decades of success, you’ve already built a strong business. Now it’s about giving your business the visibility and tools to thrive.
Andrew Brolly, senior accountant with ifac.
Andrew Brolly is fractional cfo with ifac, which is the professional services firm for farming, food and agribusiness.
Question: I have run a food production business for the past 40 years. Sales are fine and are about the same every year. We’ve always used invoice books and keep our VAT records on a spreadsheet. Our daughter just finished her business degree and recently joined the business. She said we need a better accounts system as we can’t keep gauging how we are doing by our bank balance. The system we use has not let us down so far, but I know we need to move with the times if we want to grow the business. What do you recommend we do to improve things?
Answer: Congratulations on 40 successful years in business – a great achievement. While your existing system has served you well, accounting has evolved enormously.
Invoice books and spreadsheets worked perfectly when things were simpler, but they can quietly limit your ability to grow. Your daughter isn’t saying something’s broke, she’s simply recognising that to stay competitive, you need better visibility and real-time information. Modern accounting systems don’t replace experience, they enhance it and help you see trends, plan cashflow and make smarter decisions.
Bank balance
If the account looks healthy, things must be going fine…right? Unfortunately, the bank balance only shows one moment in time. It doesn’t reveal what’s owed to you, what you owe suppliers, or how much profit you’re actually making. You could have €250,000 in the bank but owe €260,000 to suppliers.
Rising input costs and higher payroll expenses, especially with the coming minimum wage and auto-enrolment changes, make it more important than ever to track margins properly. A cloud-based accounting package gives you daily or weekly updates on how your business is performing and where costs are creeping, helping you track margins and ensure that your business stays profitable.
It doesn’t need to cost the earth
A cloud-based accounting package doesn’t have to be complicated or expensive. Think of it as another tool that boosts efficiency – much like a machine on your production line. The benefits include:
Real-time information – you instantly see monthly profit and loss and cashflow trends.Reduced human error – VAT returns and reconciliations are automated.Time savings – freeing staff from manual data entry.Better planning – reports for banks and grant applications are ready in minutes.Forward visibility – produce cashflow projections and identify seasonal pinch points.So what accounts system should you choose and why? For your type of business, a cloud-based solution is ideal. Popular options include Xero, QuickBooks, Sage Accounting and Big Red Cloud. These systems link directly to your bank account, removing the need to manually input transactions. They also allow you to email or scan invoices straight into the system, saving paper, postage and storage costs.
Invoicing and statements can be issued electronically, and the software can generate reports showing margins by customer or product making it invaluable for a food producer. Used correctly, you’ll know exactly which lines or clients are most profitable.
When setting up, involve your accountant. You’ll want everything right from day one – customers, suppliers, tax rates, digital invoicing and tracking categories all properly configured. Your daughter can help manage the setup and staff training,.
Costs vary from €35 to €100 per month, depending on features. Before you commit, discuss your needs with your accountant and the software provider. They can help tailor the system so you only pay for what you’ll actually use.
Benefits
My daily role is in management accounting and I have seen, first-hand, the benefits of modernising an accounting system. It brings efficiencies, focus and growth to businesses.
The cost of any of these systems is repaid multiple times in the many efficiencies generated.
After four decades of success, you’ve already built a strong business. Now it’s about giving your business the visibility and tools to thrive.
Andrew Brolly, senior accountant with ifac.
Andrew Brolly is fractional cfo with ifac, which is the professional services firm for farming, food and agribusiness.
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