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Can’t tell your P&L from your cash flow? You’re not alone. This week’s SME Brief breaks down small business accounting without the jargon and headaches. We cover cash vs. accrual accounting, how payroll affects fundability, and the best software for your sanity like Sage, Xero, QuickBooks, and Zoho.

Still using shoeboxes for receipts? Try Monday.com to turn chaos into workflows.

Understanding a Profit & Loss Statement

A Profit and Loss (P&L) statement is a key tool for managing your business finances. It shows your revenue, expenses, and whether your SME is making a profit or loss. Understanding your P&L helps you reduce costs, improve cash flow, and make smarter business decisions. It’s also essential for tax compliance, budgeting, and applying for business funding. Even if you use an accounting tool, knowing how to read your P&L helps you grow a more profitable and sustainable business.

Cash Versus Accrual Accounting

Understanding the difference between cash accounting and accrual accounting is essential for managing your business finances. Cash accounting records income and expenses only when money changes hands, making it ideal for small businesses with simple cash flow. Accrual accounting, on the other hand, recognises transactions when they occur, offering a clearer picture of your financial health. Choosing the right accounting method can impact your tax compliance, reporting accuracy, and financial planning. Select the method that best suits your business model.

More Insights on Accounting ⬇️

Need Help Managing Your Business Finances?

The right accounting software can simplify how your small business handles invoicing, expense tracking, budgeting, tax compliance, and cash flow management. Cloud-based solutions like Sage, Xero, Zoho, and SMEgo offer easy access to your financial data anytime, from any device. Many also include bank integration to save you time on manual reconciliation.

Whether you’re just starting out or growing, there’s a tool that fits your needs and budget. We break down pricing, features, and usability to help you make the best choice.

How Monday.com Can Help You Simplify Small Business Accounting

Accounting can be overwhelming for small business owners, from tracking expenses and reconciling statements to staying compliant with taxes. That’s where Monday.com can make a real difference.

​Monday.com isn’t just another project management tool — it’s a customisable work operating system that helps business owners organise, track, and automate accounting-related workflows. Whether you're managing your books manually or using accounting software like Xero, QuickBooks, or Zoho, Monday.com can integrate and centralise your financial tasks in one place.

Here’s how small businesses are using Monday.com to improve their accounting and finance processes:

• Track income and expenses with customizable boards
• Set up automated reminders for tax deadlines or payroll runs
• Create workflows for monthly reporting, invoicing, and reconciliations
• Collaborate easily with your bookkeeper or accountant
• Use integrations to pull in data from your accounting software or spreadsheets

By making accounting more visual and collaborative, Monday.com helps reduce errors, improves accountability, and gives you more time to focus on running your business.

If you're struggling with keeping your bookkeeping up to date, managing cash flow, or just want to stay more organised financially, Monday.com is worth exploring.

It’s especially useful for founders without a finance background who need a clear and easy-to-manage system to stay on top of their numbers.

👉 Visit Monday.com to see how it can support your business operations, including your accounting