As a small business owner you no doubt wear many different hats during your day-to-day tasks. Accountant, marketing manager, PR guru, head of HR, etc. are probably just some of the roles you have to take on. Because of this typical small business environment it is common for some aspects of a business to suffer and for some reason, despite its huge importance, it is often the financial accounts that suffer the most.
This can happen for a few reasons. A lack of understanding when it comes to accounting is one and a shortage of time due to other business commitments is another. Serious accounting nightmares can occur when accounting issues are overlooked and this is bad news for a business of any size.
Paying the tax man has a habit of creeping up on us and before you know it its that time of the year again. Not knowing the amount of tax you need to pay can cause a lot of issues. Even successful businesses have failed around tax time due to poor tracking of accounts and therefore a lack of cash availability. If records are not kept properly you run the risk of overpaying tax or paying late fees and penalties due to poor accounting processes.
Keeping good financial records is essential in order for small business owners to make informed and sound decisions in all aspects of the business, e.g. inventory, sales, customer relations, marketing, taxes, accounts receivable / payable, etc. Cloud based accounting solutions can help business keep good financial records, streamline processes and overcome accounting obstacles. Many business owners don’t have an accounting degree so they need all the help they can get, and it’s also important to have a tool that doesn’t require you to be a computer programmer or a mathematician in order to use it.
Here is how cloud based business accounting software can help your business…
Accounting can certainly be overwhelming – the international tax rules, legal compliance, etc. However, there are many professional tools out there to help save you time by automating numerous processes. Being able to automate processes and get things done quicker will go a long way to reducing the overwhelming nature of accounting.
You can automatically process and book transactions with a lot of the online accounting software solutions available. By using certain payment processors, e.g. PayPal, the transaction is recorded automatically without the need for human data entry. This also takes away the potential of human error and therefore using the accounting tool becomes a more accurate way to run processes as well. Once you have set up cloud-based accounting solutions there is very little work to be done in terms of maintenance, which means a more streamline and time efficient way of working.
Know Your Bottom Line
Reporting is important in many areas of business, however in accounting it is absolutely essential. By choosing an appropriate accounting application you can run all accounting reports at a click of a button whenever you want and wherever you are (as long as you have an internet connection). To generate such reports manually will mean a lot of your valuable time is taken up and there’s no guarantee that the information will be accurate.
Hire A Consultant
There are many small business accounting apps available, with more coming out all the time. They all seem great and have a number of similar features so it becomes a challenge to distinguish one accounting app from another. Therefore, when choosing a cloud based accounting solution it is important to get some advice to make sure the software is suitable for your business. Speak to a Certified Public Accountant, a Bookkeeper or an expert in cloud-based accounting software. Reading user reviews from a trusted source is also recommended.
Once you have decided on the right piece of software for your business it’s important to set up the correct procedures for implementation and data entry. This will help ensure you experience all the benefits associated with cloud based accounting software.