Bookkeeping pains? 9 benefits of real time reporting that may ease the strain…
Are you working long hours in your business, then coming home to hours of bookkeeping work? Just to meet your current activity statement and tax obligations?
You’d probably like to spend more time doing what you love and less time on the books?
If you haven’t yet considered the benefits of real time reporting for your business, now might be the time. Online real time bookkeeping systems such as Xero do more than simply processing your bookkeeping.
They can bring the following benefits to make your life easier:
Access real time information from anywhere
Your live financial data is accessible at anytime from anywhere on any device – both to you and your accountant. This is easier than backing up and emailing files to your accountant, who must then load the file, adjust it, back up and email it back to you.
The software is upgraded regularly as required, without you having to download anything.
It saves you time
Transactions from your business bank account will feed into your software daily. All you need to do is categorise each transaction correctly. There’s no need to type or write down the date, the amount or the bank description, as this data is already there.
Xero provides a phone app that you can use to take photos of tax invoices that are then matched with the transaction in the software. These receipts are stored in your live file, allowing your accountant access to a copy of the tax invoice. There’s no need to keep and store paper receipts.
It improves cash flow
As the data is based on real time reporting, you can monitor and improve your cashflow.
You will know who owes you money and you can automate the sending of reminders for outstanding invoices with the click of a button.
You will be more aware when an additional cash injection may be needed due to low cash flow and the software will assist with managing this.
It can improve profitability
Having current, up-to-date information means your adviser can work with you to improve your profit margins and monitor your progress.
Goals can be set for the business and, together with your adviser, you can determine strategies to improve your bottom line.
You always know your current financial position
With online, real time bookkeeping, you will always know how much money you owe to suppliers and how much money is owed to your business.
Your profit and loss and balance sheet can be easily produced when required for bank financing.
It allows you to budget easily
Developing budgets and monitoring the progress of the business against the budget is made easy. This allows you to know how your business is tracking at all times.
It helps with taxation and GST
You’ll also be able to manage your estimated taxation liability because you have current financial data.
How much easier would it be if you knew what percentage of income you needed to save towards your income tax and GST? This calculation is more complicated that just paying the 10 percent GST.
Being on top of ATO obligations allows you to spend more time focusing on your business rather than stressing about your current financial situation. Tax planning is a simpler process when current, up-to-date financial data is available.
It integrates easily with other apps
There are many apps that integrate with online accounting software, removing the need to duplicate data. This will save you time.
It makes payroll and superannuation guarantee easier
Hiring employees creates more bookkeeping work for employers.
Online software allows for easy processing of payroll, PAYG withholding calculations, and superannuation guarantee. Payslips can be emailed to employees with the simple click of a button.
Need more from your bookkeeping system?
If you’re not already using an online bookkeeping system and enjoying the benefits of real time reporting, now is the time to seriously consider it.
If you are already using Xero, or similar software, are you making the most of the additional services available, such as cash flow management, budgeting, managing ATO debt, and working on business goals and KPIs?
Should you need further advice on easing your bookkeeping pains, feel free to contact us for an initial chat.