The benefits of modern accounting processes
Posted by Northadvisory on July 21, 2021
One of the most laborious tasks for any small to medium sized business owner is managing the accounts.
Nights spent in front of the computer sorting through bank transactions, cross referencing invoices and receipts, navigating rows and columns in spreadsheets can be frustrating and tiring.
But by embracing modern accounting processes you can alleviate some of the stress related to managing your business finances.
Selecting a cloud based accounting software system that streamlines your financial tracking can not only help you get your nights back but also give you extra insight to be able to push your business forward.
First and foremost, utilising modern accounting processes will increase your productivity. If you are used to manual processing or even desktop accounting you will already know that it can be time consuming. Manual data entry can eat up hours and there is always the risk of human error. When you move to a cloud based system, you have the opportunity to automate your regular bookkeeping tasks, which immediately removes the potential for errors or duplicates.
You can easily access invoicing, expense claims, customer payment reminders and real-time budget reviews, and this enables you to effectively manage your day to day business activities.
Up to date information
Real time business accounting is a powerful tool. If you have the right information about your business – your cash flow, your shortfalls, your revenue, your employees – then you have the capability to make changes for the better, at the right time.
As a business owner, you need to be confident that the accounting data you have on hand is reliable so that you can make informed decisions quickly. This is where your cloud system proves its worth. Unlike traditional accounting systems where you might have to go back to the office to check the most up to date information, you can access your data via any device, anytime… anywhere around the world.
The cloud system will automatically sync your business bank account, so you can review the most recent transactions and track your cash flow in absolute real time.
Leveraging modern technology and moving to a cloud based accounting system might sound like a significant financial investment, but the efficiency of your new system will very quickly result in cost savings.
Not only will the cloud based system streamline your processes, saving you time… and money, but if you currently run a desktop accounting system you’ll save on server and hardware costs, too.
When you utilise a cloud based accounting system, you can be confident that you will never lose crucial financial data. Services providers such as Xero employ state-of-the-art security technology to encrypt data and make sure critical financial information is safe.
You don’t need to worry about files being deleted, or losing something if your computer is damaged. The cloud system regularly backs up your data and keeps it secure within the cloud.
Ease of use
As with any new system there is always a period of learning, but once you have completed various tasks you will undoubtedly recognise how much easier your business accounting processes will be.
Cloud based systems are periodically updated but you won’t need to go through annoying re-installations or maintenance programs; it’s all done automatically for you.
Ask a professional
We understand that newer business accounting processes can seem daunting if you are used to traditional methods. But we are confident that embracing modern options can help you gain greater insight into your business productivity and profitability.