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.
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.
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.
- 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 BAS 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.
Wondering how an accounting system could change your business? Grab a 30-day free trial of Xero and book a session with our support team on [email protected] . You’ll have your head around it in no time.