 Coach, welcome back to the podcast. Welcome back to another episode with my friend Andrew Casal from Valor Accounting Services. Andrew, how are you today, sir? I am very well. How are you doing, Leo? Very well. Are you prepared for the Christmas holidays? Oh, yeah. I can't wait. I can't wait for this week to be over. Very good, right? If you're watching this podcast, then it is going to be pre-recorded because it's going to go out later. So we're recording it just before Christmas, a time of the year that is very busy for a lot of business owners. But if this is the first time you're watching the podcast, make sure you go back and watch the previous ones we've done because this is going to make a lot more sense about what we're going to be talking about today. So if you have a look at the screen in front, our last episode, we talked about good record keeping. Now today, we're going to talk about accounting software. So Andrew is obviously a specialist in this type of a subject and topic. So Andrew, take it away to talk to us a little bit about how why this is important for sports coaches. Yeah, no, thanks. So I think what would be quite important is just to take a little bit of a step back and see the business journey so far. So if you're a sports coach, you know, looking back at the previous podcast, you've set up your business structure legally. So that's either setting up a limited company or registering for a as a sole trader, self-employed. You then set up a suitable business bank account, keeping everything separate. And now and then you understand the importance of a good record keeping system. Now we're going to be talking about accounting software and why that's important. So what I want to do is I'm going to switch over to the another slide and we'll talk about this. So first of all, I wanted to talk about just a common misconception with with accounting accounting software. A lot of business owners believe that accounting software is just for the accountant to do the year end type things, maybe a little bit of bookkeeping involved. But that's that's not true. Technology has evolved so much that accounting software has become an integral part of any business owner structure. So even and it's not I'm not blaming. You know, I can't blame business owners because only 60 percent of accountants are actually embracing the new type of accounting software, which is cloud accounting. So it makes sense that a lot of business owners don't understand the importance of it in their business. So that's the first thing. Now, let's take it from you. You're a business now. You've got using spreadsheets, which is great and it's working for you. What I find is that there are generally three types of business owners that I come across. You've got the first one, which is quite a rare case where they're just unaware that there's a more efficient solution to keeping track of everything, sending invoices, paying their taxes. They're just unaware that there's a system that can just do it a lot more efficiently. The the next one is the business owner that realises that they need to streamline their business and they look for solutions and they're a bit more proactive. Then you get the third one, which is they're just content with their spreadsheets and they're happy to just continue with that. Now, what I think I want to focus on the third one a little bit more, because that's where. If, for example, you've got a sports coach that is happy to keep track of everything on the spreadsheets, what I would say is ensure everything is correct, your formulas. I've had clients that have come to me who have kept their business records on spreadsheets and they think in everything is good, but the formulas just don't add up. You've got loads of spreadsheets and you have to check everything that is correct. I've had clients who have over calculated their their sales. So they've increased their sales because the formulas wasn't correct and they've underestimated their their expenses. And that does impact the amount of tax you pay. And as well as a business owner, you thinking that you're actually, you know, having lower expenses than your than you currently have or you're generating more or less sales. So I've had clients like that. So that's one thing I would say, definitely double check. Make sure that the paperwork is in the correct, you know, files uploading your bank statements. You've got to upload your bank statements on, you know, your spreadsheets. Make sure it reconciles. You know, the amount of times I've had clients come to me that they would upload, they've uploaded their bank statements and it just doesn't, you know, the end balance of the previous upload doesn't match because they've had a few transactions, which it happens. You know, so one thing I would say for those business owners who want to keep it with spreadsheets, ensure that your system you've got currently is, you know, it's watertight. And another thing just lastly on that is audit the time it takes you to do all this stuff, because ultimately, you know, as a sports coach, you probably don't want to be dealing with too much accounting stuff, especially with the spreadsheets, you know, I love spreadsheets, but at the same time, I can get sick of them as well. So I can only imagine what business owners would say, OK, can my time be spent more effectively, you know, doing the thing I actually love, more passionate about, rather than faffing about with spreadsheets? Yeah. Yeah. Yeah, 100 percent. It's a great conversation. And it's interesting because I know a lot of coaches that when I speak to them at the beginning, they're running everything through WhatsApp, right, they're running the entire business because they've got no idea. They think when you when you run a sports training business, that it's just about the coaching. Right. So I know a lot of coaches are going to be watching this video and grabbing their head and saying, wow, what is this? So it's great we're having this conversation because it shows that as a coach, you need to develop your business skills as well and not just your coaching skills on the field. Yeah, 100 percent. And hopefully this podcast can shed some light on how having a good accounting software will help your business will free up time for you. And so, yeah, the second second part is streamline your record keeping. And, you know, when you do move on to accounting software, everything's together. You've got your bank accounts together. You may have a number of different bank accounts. You can have an accounting software which brings it all together. Sending invoices as a sports coach, you might be sending invoices through Microsoft Word, for example, or you're using a software which is just dedicated to sending invoices. Well, having a good accounting software, you can do it straight from there. If you've got cash accounts, you know, with a sports coach, sometimes you do deal with cash. There's there's in a good accounting software, you have facility to account for cash transactions as well. So that's something to to be aware of is making sure that your accounting software is good enough to streamline your record keeping and keeping everything in one place, you know, not having separate files on your desktop, the, you know, expenses, sales and voices is all in one place. So that's the second part. Now, we move on to, OK, choosing the right accounting software. How do you go about choosing it right? So a good way to start is making sure that you have, especially if you're starting out or you're growing, have a cost-effective way of obtaining this accounting software, one that grows with you, grows with the business. So maybe starts with basic pricing and it may be something like sending X amount of sales invoices a month and X amount of transactions that you can have if you're a small business, that might be good. And then it'll be quite cost-effective in that way. And also now, as I said, the the barrier to entry in terms of having a accounting software is so low that you can even get for free. Now, there is a way where the UK sports coaches to get free banking and free accounting software. And we can actually include that in a later newsletter on how to do it. And more than happy as well to book a 30 minute call with myself with any sports coach to do that and help facilitate that process. Perfect. And if you are to cut out, if you haven't subscribed to the newsletter, visit the description below and you can subscribe to the newsletter to get what Andrew is talking about. Sorry, Andrew. No, no worries at all. OK, the next one is good customer service. Of course, you want, especially as you're starting out, you may not have the resources to hire a bookkeeper or an accountant. Ensure that the accounting software has good customer service that has sufficient training. And as I said, a lot of accounting software now helps with the onboarding side of things. So that's something that's very, very important. Of course, if you do have the resources for it, a good account and a bookkeeper would allow time to give training. So, for example, Leo, in your business, when you wanted to set up sales and voices or direct debit, we went through to it together so you understood how to do that. Yeah, yeah, yeah, yeah, yeah, it saved me a lot of time because if you don't have this software, then you have to create the invoices yourself manually. Whereas if you've got the software, it has templates that you can use to send out to your customers. Yeah. And another thing as well is ensure that it's feature rich. And what I mean by that is. As what Leo is saying, does it send invoices? Are there integrations with third party software? Can it file your taxes for you? Can it do payroll because you want. A account software which has room for growth, which is obviously the next point is if you are going to be hiring staff, you want a facility where you don't want to get another bit of software to do the payroll for you. You want it all in one. You want it all in one. And an expense management tool. You know, if you're, you know, a sports coach, you've got receipts. You've got purchases. You want to put it in one place where the accountant or bookkeeper or you as the business owner can review that. And that's called an expense management tool. And Leo, you you love that tool, right? You have that on your phone. You could upload receipts and things like that. It's really, really easy to use. Yeah, it's my it's my best friend. OK, you know, and as I said, know it's limitations. If you do choose an accounting software, know it's limitations and understand where you as the business owner want to go. And another thing as well, speak to the software providers. They're happy to help as well. Fantastic. Yeah, I just want to add as well that it's I mean, the key the key points to this to this episode is basically being better organized and the more organized you are with your with your business, the more money essentially you'll you'll be able to make in the long term. Yeah. And you know what? That beautifully brings me on to my next point. If you've got an accounting software, an accounting system, which allows you to set up direct debit or a facility to pay online. You can then that that's a lot better for you as a sports coach, because that allows you better cash flow, because you're actually not having to chase clients for outstanding payments. It's done directly through the system, helps you better with cash flow. Then you can reinvest in the business or take money out of the business. So that's another important thing. So that organization really does come in to a more profitable business and a better business cash flow wise as well. And, you know, this is something more for the next podcast, but just a little bit of a bit of a take, shall we say, you know, producing quick reports of how your business is doing, you know, and having a accountant or bookkeeper who understands these reports can give specific tax guidance, even projections of how your business will do in the next three, six months. And that's obviously something we do with you, Leo. And, you know, you found that helpful as, you know, as a business owner yourself. Yeah, 100 percent, 100 percent. Yeah. So Andrew, take for a lot of coaches watching this, obviously, those that don't understand a lot of about accounting and software, they might be watching this and thinking, wow, like I'm getting a bit overwhelmed. But let's take two coaches, for example, you've got coach number one who's doing everything manually off a spreadsheet. And then you've got coach number two who's using an accounting software to run the business. Right. So what are the benefits of coach number two using the software against number one who's doing everything manually? So coaches have a better understanding. Yeah. So, you know, as I mentioned before, it just frees up your time as a coach to do more of the activities that bring revenue to your business and things that you actually find more interesting to do than the accounting side. Having a spreadsheet, it's good. It's, you know, a lot of business do that to start off with, because that's all they know. And and hopefully this podcast has given a little bit more education about that. And, you know, that's what I would say on that. And in terms of the overwhelming feeling, yeah, I do get a lot of clients that come to me and they it's a whole new world for them. But especially starting out, it's a lot about education, how it works. But after a short period of time, only a few weeks, maybe, once everything is on the accounting software, it's just a massive, you know, piece of mind for them. And then they can they know that everything is tracked. Everything is taken, you know, is taken care of. So, yes, that overwhelming feeling does start, but it goes very, very quickly. And you're in a better place. You are now than you were when you started with the spreadsheets. Perfect. Love that. Fantastic breakdown there. And if you are watching, OK, and you want to get in contact with Andrew to maybe learn more about accounting software or different softwares, right, in the description below, we'll put a contact info so we so that coaches can reach out to you with any questions about this type of topic. So I want to thank you again, Andrew, for another great insight, another great episode, and I look forward to our next one. Brilliant. Thanks for having me, Leo. See you later.