By Pam Pitt
Change is always a hard thing. For small business owners using spreadsheet and ledgers, moving to a cloud based accounting system can be daunting. Many have different reasons for putting it off.
If the cost of buying accounting software is the reason, I think it is very short-sighted. Businesses that run on manual systems are wasting valuable time and working inefficiently, and are at risk of losing their competitive edge in the market place.
As the end of financial year draws near, what can cloud accounting do to save your sanity?
1. Cloud accounting syncs with your bank accounts
If you have left getting your data entry to the last minute, and need to quickly and easily update your records, then moving to a cloud based accounting system helps you instantly.
Sign up for live bank feeds and by creating simple bank rules, your transactions can be automatically fed into your software. You no longer need to mess around trying to find receipts and manually categorising your transactions. You can quickly and easily update your accounting files in time for the financial year end. Bank feeds are a key driver of lowering operational costs of a business too. It will allow you more time to go out and generate revenue instead of spending time sorting your books.
2. Cloud accounting automates those fiddly calculations
The end of financial year means that payroll year end and BAS looms close. By using accounting software, you can have GST codes automatically recorded on your transactions. Easy to use BAS tools enable you to produce instant reports on payroll, PAYG, PAYG instalment and GST for BAS reporting.
It’s the same with payroll…your accounting software can give you end of year payment summaries and files to send to the ATO. And of course, accounting software should also give you benefits in tracking what superannuation and leave accruals are owed and helping with a host of other payroll requirements.
3. Cloud accounting lets you collaborate
Another key advantage with cloud accounting software is collaboration. Your accountant and bookkeeper can be given remote access to your file, allowing all parties to work together and ensure they deliver positive outcomes to help the business grow.
Your bookkeeper can more easily and quickly keep your records up to date, reducing costs. Your accountant can then provide regular reviews and organise tax planning strategies in advance of the year end. Your accountant can update, review and correct your data on an on-going basis, rather than at the year-end when it becomes a time consuming and costly task for them and you.
So accounting software saves you time, save you effort and save you money. You can gain a competitive edge in your industry by allowing yourself the freedom to focus on and grow your business rather than spending your time doing data entry. Automated cloud systems aid in driving business success by enabling you to have the finger on the pulse anywhere anytime.
If you’re not sure what software to use, a great entry point is MYOB Essentials for $29 per month – it is intuitive, fresh and very easy to use accounting software that gives you all the benefits of cloud accounting.
The information provided here is of a general nature for Australia and should not be your only source of information. Please consult an experienced and registered tax agent as each small business’ circumstance will vary for end of financial year.