When I set my business up in 1999 there was really only one choice for accounting software: Sage and you’d be forgiven for thinking that this was still the case given their marketing budget and visibility.
The consequences of choosing Sage were that I needed to employ someone specifically to use that one piece of software (I can hardly believe it even as I write that!) and that I got very little use out of it, as MD, because I would have needed to buy an extra licence to view the information.
In my view, Sage accounting software is an utter nightmare and it completely taints your view of what accounting software can do for you. In desperation, last year I looked for an online solution and, thank heavens, I found FreeAgent.
I kid you not, if you’re a Sage user or if you find book-keeping a long winded, boring process that you do because you must, take a look at FreeAgent (http://www.freeagentcentral.com). You can trial it free for a month so there’s nothing to lose.
As an illustration, I’ve gone from having to employ someone three days a week to do the books on my main company to doing the books myself in no more than one hour a month. I kid you not. In fact, I also do the books for another business and that takes 30 minutes a month.
Here’s how it works (having set up your account) -
- Download your statements from your online banking account
- Upload them to FreeAgent. FreeAgent then tries to work out what each entry means and only asks for explanations of those it can’t be sure about. It gets progressively better at this over time and I typically only have a dozen or so transactions to explain per month.
…that’s it.
Doing the VAT? Just make sure your statements have been uploaded, click Taxes, VAT, and there it is: a visual version of the paper form for you to fill straight in.
How about sending the books to the accountant? Easy: under Accounting you’ll see a range of reports to send to your accountant along with the ability to export the whole lot to Excel.
Accountants are a conservative lot and many of them are tied to the Sage treadmill (of course it suits them to perpetuate the air of complication and mystery around accounting that Sage encourages) but I’ve persuaded my accountant to accept information in FreeAgent format (you could even add them as a user on your account). If they don’t: fire them! Remember, your Accountant works for you not the other way round!
FreeAgent ranks in my top couple of web applications of any sort. As an extremely busy person, I confess to almost enjoying doing the accounts now. When a business isn’t doing well, I feel better for knowing the worst. When it IS doing well, I get a warm glow from knowing just how good things are.
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