You can make faster, better business decisions to improve profits and cash flow with Brightpearl. 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’ve teamed up with Evenstone to bring you the top five accounting mistakes Brightpearl lets you 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 Brightpearl 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 Brightpearl as soon as they have been submitted to HMRC. 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 Brightpearl 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.
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 Brightpearl is a must. Using a template journal will make entering this data much easier.
Not sure how your accounting data shapes up? Evenstone are now offering an Accounting Healthcheck which provides a full review of your Brightpearl accounting data to make sure you’re getting the most from Brightpearl’s extensive reporting capabilities. They will provide you with a report detailing any issues and also make recommendations about how to improve things. You’ll also receive a call from one of their Brightpearl accounting experts to talk you through what they’ve found.
Make it a resolution to get your accounts straight this year!