The benefits of real-time business accounting
Posted by Northadvisory on May 20, 2020
The power of real-time business accounting
Information is power. This has never been truer for businesses than it is today.
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.
This is even more important in times of crisis, as we have been experiencing with COVID-19.
Having accurate information about your business would enable you to access the government’s stimulus package like JobKeeper faster, to help you get through this difficult period.
So imagine how much more empowering that information is for a business when it’s in real time. Meaning, when it is up to the very second, as it is happening on a minute-by-minute basis. That’s the power of real-time business accounting, and that’s what you can have with a cloud-based accounting system like Xero, whether you’re a start-up, a growing business or an established one.
Paperless and accurate business accounting
It’s hard to imagine how businesses dealt with the reams of paper and files they needed to keep for accounting and taxation purposes in the past. When you consider that you must keep records for five years, and depending on the size of your business and the paperwork it generates, it can be quite overwhelming.
So imagine now having to add the burden of doing your business accounting in retrospect – months or even a year later. It doesn’t take a genius to figure out that this is doing things the hard way.
And the worst news is that by waiting to do your accounting or doing it in retrospect leaves gaping holes of missed opportunities because you simply didn’t have the crucial data you needed to make vital decisions at a better time – in real time.
Real-time business accounting is completely paperless because everything is saved securely in the cloud. And it is absolutely secure because two-factor authentication is an integral part of it.
Even better though is that real-time business accounting is accurate. Which means you not only minimise accounting errors through the system, but you have immediate access to the most up-to-date data about your business… when you need it most.
This not only helps you to make better decisions faster. It helps you to avoid pitfalls when a particular business system isn’t working, and to take advantage of systems when they are.
Integrate payroll and business accounting
Say goodbye to the days of having to spend an entire day doing the payroll. Not to mention spending hours inputting all the data for superannuation, leave and then reporting to the ATO.
With a cloud-based business accounting system like Xero, you have payroll and accounting integrated in the one place. And because all your employees are inputting their hours on a daily basis, when it comes to doing the payroll, it’s cut down to ten minutes, with the software doing all the hard work for you.
This includes automatically calculating superannuation and leave accrual. And when it comes to paying superannuation, it’s one simple click to complete it.
A real-time business accounting system is completely integrated with the ATO’s Single Touch Payroll (STP), meaning your reporting is instantaneously produced.
Generate reports with ease
In the past, it was a real challenge for businesses to generate different types of reports to examine different aspects of the business. This was even more so for small businesses, which didn’t have a dedicated financial manager to take care of this sort of detail.
With a cloud-based business accounting system like Xero, you can generate any report about any metrics relating to your business.
Whether it’s supplies, expenditure, sales, or any other data that you’d like to have on hand, it’s a simple process to have this accurate information in a report.
You can use templated reports or create your own unique reports. You can compare specific dates, quarters or years, because you can change the time periods for each report very easily. With this level of access to your information, you can see trends over time for expenses, you can see where there are spikes or dips in revenue, and you can see numerous other trends.
It’s simple and it saves you time
Because Xero has very specific user profiles, we as your accountants have full access to all the necessary data we need to help you reconcile transactions and keep you updated on anything missing.
And, of course, you can lodge your BAS through Xero, which keeps the process simple and smooth.
And you don’t have to be a financial expert to use cloud-based accounting. The software is simple enough for anyone to manage, and there are numerous tutorials and support systems in place to help you through it.
Once you start using real-time business accounting, you’ll never look back. It simplifies financial processes and cuts out unnecessary administrative time.
Are you ready to embrace a better business accounting system and empower your business to make more informed decisions? Contact North Advisory to discover how we can help you. Read more business accounting articles.