Ready to take back control of your business? When it comes to small business finances, automation really is the way forward.
There’s no doubt that technology makes our lives easier in so many ways. And as business owners, accounting software is making accounting quicker, more accurate, and easier than ever to keep on top of.
You have access to a 360 degree view of you business’s performance, anytime, anywhere. Data is secured in the cloud, with no need to do backups or archive paper files. The automation built into accounting systems saves you time and streamlines your processes, eliminating manual error. Plus, this technology is improving day by day, arming you with deeper and more valuable insights to grow your business.
Read on to find out how you can get the most out of your accounting solution.
Find the right accounting software for your business
So you’ve decided to go digital with your accounts. Congrats! It really is the way forward, arming you with the insights you need to get to where you want to be.
First thing’s first though– it’s time to choose the right accounting software for you and your business.
When it comes to accounting software, there’s no one-size-fits-all approach, because every business is unique. That’s why it’s important to find a software solution that is tailored to your industry and the needs of your business to best support you.
In general, we recommend choosing from the following:
We recommend weighing up the different options and getting a feel for each piece of software before settling on one. If you’re unsure, it’s always best to talk to your accountant. They’ll have an in-depth knowledge of each platform and can advise on which one is best for you.
For the lowdown on Xero vs FreeAgent vs QuickBooks, check out our blog post on which accounting software you should choose.
Reconcile accounts regularly
This one almost goes without saying, but it’s something a lot of business owners don’t do.
We get it– you didn’t go into business to reconcile accounts, and there’s probably more important things on your to-do list. But reconciling your accounts regularly will help you get a handle on the numbers and plan for the future of your business.
Ensuring your accounting software is up-to-date means more accurate financial reports, helping you with tax returns and year-end accounts. It also gives you a clear and accurate view of how your business is performing, and what changes you need to make to achieve your future goals.
Depending on the volume of your transactions, we recommend categorising and reconciling bank account transactions every day.
Not got time to keep your accounting software up to date? Hire a bookkeeper to take care of it for you!
Make use of reporting tools in your accounting software
Think of your accounting solution as the core piece of software for your business’s finances. From here, you can get a visual overview of how your business is performing and keep tabs on your business’s cash flow, bills, invoices, and expenses.
Accounting software can also handle financial reporting for you in real-time, giving you more financial freedom and helping you grow your business.
With Xero, you can get an overview of your total cash in and cash out on your dashboard to quickly visualise your current cash position. And with the Cash Summary tool, you can drill down into more detail about the movement of cash in and out of your business.
These are great tools for keeping an eye on cash flow on a daily or weekly basis, and if you’re new to the world of cash flow management, they’re a great place to start.
Again, these reports will only be accurate if your information in Xero is up-to-date, otherwise it all falls down. If you don’t keep the bookkeeping up-to-date, it will skew your whole reports!
Connect leading industry apps to streamline your business
Small business accounting has shifted rapidly in the last few years. Gone are the days of filing paper tax returns and manually recording your transactions. Now you can use accounting software as a central source of truth for your business, keeping your finger on the pulse with a 360 degree view of your business’s financial health.
Better still, you can connect your accounting software to a range of leading industry apps and integrations to help you run your business better. Accounting is just a jumping off point– from here, you can build a fully customised software stack, tailored to the individual needs of your business.
The app marketplaces for Xero, QuickBooks, and FreeAgent are constantly growing. Right now, there are over 1000 leading apps that integrate with Xero alone to help you manage your business better, from payroll, inventory, and time tracking to CRMs.
Talk to your accountant regularly
To help you get the most out of your accounting solution, schedule regular meetings with your accountant to make sure everything is running smoothly.
Your accountant is there to support you and help you grow your business. They can advise you on which apps to connect to manage things like payroll, invoicing, cash flow, and financial reporting and they can help you maximise your accounting setup to streamline your business and get to where you want to be.
Ready to make online accounting work for you?