We reported how many Aussie businesses are stuck on old school accounting, with one in seven SMEs (13.6 per cent) not even using basic IT to do their accounting according to a recent report by the Australian Bureau of Statistics.
Mr Tim Reed, CEO at MYOB, a business solutions provider pointed out that this is holding back many business owners from enjoying less stressful and more accurate accounting while those who have already adopted modern methods, cloud accounting in particular, have gained the edge over their competitors.
Mr Reed further went on to share with us here at Anthill the five top advantages that cloud accounting solutions have over old school accounting methods.
1. Have your own virtual assistant
DIY record-keeping ‘systems’ are not as effective to file your paperwork as they don’t automatically take into account the numerous taxation and other compliance changes that are introduced each tax year, for example the introduction of annual reporting of contractor payments in 2013.
“Up to date accounting software, such as our very own MYOB AccountRight Live, acts like a virtual assistant by taking the hassle out of integrating tax requirements into your own manual system,” said Reed.
2. Always have information at your fingertips
“Accounting software can help you better understand your business, especially managing cash flow in real-time. It will track your expenses, payroll, inventory, estimate of GST you owe and more, so you can clearly see how your business is going at any time,” Reed explained.
And if you use a cloud accounting solution such as LiveAccounts for example, which works with over 100 banks and financial institutions in Australia and New Zealand, your system is always up-to-date with your business bank balances thanks to your transactions being automatically fed in from your bank.
3. Save more money!
Cloud accounting software could potentially save you many dollars in tax, repayments and expenses by ensuring you have the correct financial information throughout the year. You can quickly identify any errors such as incorrect transaction dates, foreign exchange rates or inventory anomalies and rectify them, potentially saving you money in the long term.
4. Enjoy the peace of mind that your data is backed-up
The Australian Taxation Office (ATO) requires businesses to keep detailed business records for a minimum of five years. Cloud accounting software can automatically securely back up your data do it’s still available should something go wrong with the office computer.
“What would you do if your office was flooded, ravaged by fire or raided by thieves? Are you sure that your important business information safe and accessible no matter what?” Mr Reed challenged business owners.
5. Increase productivity
Cloud accounting solutions can help you manage your business from anywhere you can access the internet, whether you are on the road, in the office or at home (on a Mac or PC too). If you choose, you can give your team, accountant and book keeper (or all!) access to your company files via the cloud.
This eliminates time consuming file transfers and travel, and lets you collaborate with your professional advisors in building your business by remotely monitoring key business indicators such as inventory levels and debtors in real time.
With this, you can see it high time you put away that shoebox of receipts, close that Excel spreadsheet and discarded all those tedious systems and started taking advantage of modern accounting software to streamline your processes, get better reporting and insights, and ensure you are always compliant.