If you’re a small business owner and have the goal of being successful and making money, then you absolutely need to be using an accounting software. Regardless of the structure – sole trader, company, partnership or trust – accounting software will greatly help you run your business.
Accounting software has progressed in leaps and bounds in the past few years with fantastic technological advances for the end user. The software has also moved to the cloud. “Cloud” accounting means that there is now no physical software to install and the file is stored in servers and located via the internet. Cloud providers such as MYOB have the same security as the major banks, so if you use internet banking you should not have any security concerns.
The advantages of using accounting software in the cloud for small business owners are as follows:
- Real time access to financial information – by being able to access your accounting software file any time you want you will be able to make informed and up to date decisions about your business.
- Automatic bank feeds – one of the major advancements in cloud accounting is “bank feeds”. Bank feeds is when your transactions are updated in your accounting software when they appear at the bank. This saves you time in data entry and possibly the additional hours of a hiring a bookkeeper to manually enter all transactions.
- Multiple user access and no version control issues – with your file stored in the cloud you are able to have multiple users logged into the data at the same time. This will allow you to keep working on your file while the accounting is working at the same time which means no version control issues.
- Add-on solutions – there is a huge marketplace for add-on software that synchronizes with your cloud accounting file. The add-on software can assist the small business owner with debtor control, inventory, project management and payroll to name a few. A savvy small business owner will do some research of the software to see what will best improve the way business is conducted.
- Improve cash flow – by being able to review your debtors in your accounting software you will be able to make decisions about collection and credit extension. The ability to issue online invoices via email will mean the invoice gets to the client faster, which means faster payment (hopefully).
- Processing payroll – accounting software packages help the small business owner calculate the correct amount of superannuation payable as well as PAYG to withhold on wages, which means no more manual calculations and errors that may result in fines and penalties from the ATO.
Make a tax change for the better this end of financial year with MYOB AccountRight online accounting software, it’s the power to manage business, your way. Upgrade your MYOB software will ensure your business is always compliant with tax changes, including the government’s new SuperStream system for paying super contributions. For further information or assistance with setting up or upgrading please contact Keeping Company on 1300 533 787.
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’s circumstance will vary for end of financial year.