BUSINESS ADVICE • 23 JULY 2021 • 2 MIN READ

How accounting systems optimise businesses

SECTIONS

What exactly is an accounting system?

Why use an accounting system?

What are the benefits of an accounting system?

Accounting systems and record-keeping

We’re seeing a trend in accounting. Instead of just reporting, more and more of our clients want to use their financial info to look ahead.

With every year bringing more integrations between accounting packages and adjacent business software, we’re able to see information like never before:

We can identify upcoming cash-flow shortages (and red flag this on a dashboard)
We can compare a business’s performance with others in its industry – advising whether they’re in need of help

Such features are giving businesses the edge over their competition.

What exactly is an accounting system?

At its core, any accounting system records and organises your business’s financial information. Older, manual options like ledger books and paper-based bank statements work, but there are real benefits to using electronic systems like Xero. Not only do integrations and automation save tons of time – they provide strong forecasting abilities.

Why use an accounting system?

An accounting system is a crucial part of running a business, but isn’t always used when people start out. We often see clients starting a business who are really good at what they do (which is why they decided to go into business), but all the administration is left behind because that was never their strong point. We know that success in business is tied to understanding how you’re doing, along with planning ahead – having a good accounting system will help you with both of these.

What are the benefits of an accounting system?

You can reconcile transactions in almost real-time (dodging the headache of explaining historic purchases to your accountant)
You can see your business’ performance in one click by viewing your profit and loss report
You can see exactly who hasn’t paid you yet, and how much they owe
You can use the system to create invoices, rather than handwriting them or building them manually in separate programs (the system will check they add up, too)
Your GST return can be calculated automatically
You can capture expense receipts with digital tools (like email and photo), so you don’t have to keep the paper copies

The biggest benefit is that an accounting system will save you time. Any time spent reconciling transactions in your digital system is like an investment, saving dramatic amounts of time at the end of the year when reports are due.

Accounting systems and record-keeping

We should remind you that, by law, you need to keep your business records for a seven-year period. Yet again, your accounting system makes this a breeze – especially when you find yourself audited by the ATO.

Who are Beany?

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant world.

We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today.