Just like how Instagram is the new Twitter, stripes is the new sporty-luxe, and biometrics is the new security guard, with the help of cloud accounting software, going paperless has now become the new trend for businesses.
Because the ATO requires businesses to keep their financial records for at least five years, the whole process of storing, archiving and retrieving paper records has become a huge chore. This is especially so when businesses are faced with the time to meet tax obligations. Cloud accounting software aims to make bookkeeping tasks both quick and easy.
Keeping up with the paperless office trend, the accounting landscape has shifted dramatically. The cloud allows business owners—and their bookkeepers and/or accountants—to connect to the internet to automatically collect their data. Not only that, the software even sorts out and organises your books for you.
Bookkeeping becomes less painful when your bookkeeper and accountant can easily login and view your business’s up-to-date accounts online in any given time and place.
The thing with bookkeeping is that most business owners don’t see why it factors heavily in determining cash flow. This is understandable, as bookkeeping seems like a frustrating and monotonous task. However, if your books aren’t in order, how will you get an accurate picture of your business’s financial position?
When business owners themselves can’t see an up-to-date cash flow they are no different from pilots engulfed in fog. Without any tools to view altitude, speed or direction, they’re flying blind. The only way to make sure you land on safe ground is to stay on top of all the areas of your operations—which revolves on your cash in and out flow.
Bank reconciliation allows you to manage your books more efficiently. It is when you organise all the payments that have gone through your bank account. It’s important to keep track of how much money you spent and earned.
Using cloud accounting software allows you to automatically import all your bank statement lines. You won’t even have to worry about manually matching them with your sales invoice or bills because the cloud does it for you. Not only will you know how profitable your business is, you’ll also be able to store all your data using the paperless scheme.
As long as you figure out which software matches your business’ specific needs, all bookkeeping tasks can go from tedious to simple. Confusion will become clarity, and the boring will become fun. When bookkeeping is simple and fun to do then you have more time to come up with smarter, more innovative ways to make your business more successful.
