Business Start-Up

Introduction

A business user choosing a computer system for the first time has to give detailed consideration not only to the purchase of the hardware and software but to the installation of the system and the training of staff. The proprietor of the business will need to make a solid commitment in both time and money in order to reap the benefits.

This chapter is intended to alert the business user of computers to areas needing attention and action when installing or updating a system. It is not intended as a complete DIY handbook covering every eventuality!

The choice of hardware involves primarily:-Hard disk size, Processor speed and Memory.

A minimum recommended standard should be a hard disk of 20 Gb and 128 Mb of RAM (but preferably 256 Mb). The fastest processors are the Pentium 4 and AMD Athlon XP chips running at 1 GigaHertz upwards.

All modern PC’s come with a VGA (high resolution) colour monitor and at least a 17” monitor capable of running at 1024*768 resolution is recommended. A “floppy” disk drive for 3.5” High Density disks will be required as will a CD Rom drive as a great deal of software is published in this format.

In recent years, prices have dropped dramatically and a very high specification PC can be bought for around £800.

For accounts purposes, a “dot matrix” printer will produce copies of invoices and payslips if these facilities are being used.

Laser printers are affordable for quality letter printing but, of course, only produces one copy at a time. For colour printing, inkjet printers represent good value and indeed the price of colour lasers has also dropped significantly and good quality printers can now be purchased for under £700.

Accounting software, like hardware, is now very powerful and comparatively inexpensive. Integrated software includes Sales, Purchase and Nominal Ledgers with Sales/Purchase Order Processing and Stock Control in a single suite of programs. Prices range from one hundred to several thousand pounds. Networked versions for multi-user use are generally more expensive.

We have reviewed most of the well-known names in this sector of the market and are impressed by the value for money and wide functionality offered by TAS Books. We have joined TAS Books’ Partners in Practice programme and can offer our clients discounts on the list price of the TAS software range.

Modular systems are made up of individual programs for each of the above functions, each of which is more powerful and flexible than the integrated systems. These are put together to form a total system for the larger business, usually on a network of a number of PC’s.

These systems are for businesses with turnovers of “say” £1 million upwards.

Microsoft and their “Office” software package and Windows operating system is practically universally used on PC’s nowadays. Accordingly, most other software producers have now produced Windows versions of their own packages. Microsoft “Office” includes word processing, spreadsheet and database software and will be suitable for most business environments.

New technology, notably e-mail and the Internet have had a great deal of publicity in recent times. There can be no doubt that development in these areas will significantly impact on our lives, both socially and commercially. Getting on to the Internet is a relatively simple and inexpensive process. Developing and maintaining a website can be as complex and expensive as you care to make it. A great deal of careful thought needs to be given before significant time and expense is incurred as to how this aspect of technology be best implemented to suit your business. There are many options to consider in how this should be addressed. At YANNONS CHARTERED ACCOUNTANTS we can give some useful independent advice and thoughts in relation to your strategy in this area.

The computer industry is well known for “here today, gone tomorrow” suppliers. Make sure that you choose one with a good local reputation and never part with money until you have received the goods. Paying extra for on-site maintenance is a sound insurance for equipment being used for business.

Planning and implementation must cover the layout of your accounts, control over the information going in and verification of the information coming out of the system.

It will also be necessary to produce the accounting data for entering the opening balances.

Where advanced management information is involved, such as profit and loss by departments, more detailed planning is required. Development of a system can only take place at the pace at which staff are able to increase their own skills. The following phases of development may be appropriate for a new start-up system:

· Recording of prime entries (Cash Received and Paid; Sales and Purchase Invoices)

· Bank Reconciliations and VAT Returns

· Monthly Adjustments (e.g. Depreciation and Stock Change) producing monthly management accounts

· Sales Invoicing Routines

· Advanced Management Information e.g. detailed analyses of sales and departmental costs

· Sales and Purchase Order Processing with Stock Control

Even at the first stage the system will produce Aged Debtors and Creditors on a regular basis to enable the business to improve its cash flow.

A “set up procedures list” together with details of typical available reports follows this section.

Training staff who are to use the computer is essential both to get off to a sound start and to make progress. YANNONS CHARTERED ACCOUNTANTS will provide training, on request, tailored to your specific requirements.

YANNONS CHARTERED ACCOUNTANTS also offer telephone and e-mail support for those problems that can be quickly resolved in this way.

The popular press would have you believe that it is only a matter of time before a virus attacking your hard disk eats up your data! The most frequent reason for loss of data is not taking backups.

YANNONS CHARTERED ACCOUNTANTS will not only advise on, but also insist that, proper procedures are in place to make your data as secure as is practical.

Hardware and software is dependent on prevailing market prices. Installation and training is proportional to your requirements and usually charged at an hourly rate.

YANNONS CHARTERED ACCOUNTANTS have the necessary balance of computing and accounting expertise to help you to both get off to a good start and later to improve your system.

They have good working relations with local computer companies who will supply and maintain your equipment. Many will also provide the technical support for networks and, if needed, tailor your software to specific requirements.