Small and medium-sized businesses often view accounting and bookkeeping as a necessary evil. Even innovative business owners might not realize their accounting technology needs a serious overhaul. SALY (Same as last year) won’t allow you to make decisions necessary to move towards success. If you answer no to any of these 3 questions, then it’s time to take action and improve your accounting technology.
Small businesses tend to record their income and expenses at the end of the year. This gives them a chance to try and get a decent set of books that they can send to their accountant. Then, their accountant can make sure it counts by filing it in their tax return. The problem with this process is that throughout the year, key business decisions are made without the necessary financial data. Instead, I find that many businesses simply go off the question, “what’s in the bank?”.
In today’s cutthroat economy, businesses that make key decisions based on “what’s in the bank” will eventually succumb to “where did all my cash go?”. It’s important to make sure you’re maximizing your accounting technology and that it provides timely and reliable information. This will help business owners by providing information necessary to meet their goals. Use the criteria below to see if your accounting technology could be serving you at a higher level.
(Similar to: Prevent Internal Accounting Fraud)
1. Is your accounting system available to stakeholders anytime, anywhere?
Technology has brought the accounting profession far in the last decade. In order to keep improving, accounting technology needs to be user-friendly. Tech shouldn’t be difficult or time-consuming to access and understand. If your system isn’t instantly available to you, your CPA, and other stakeholders, then your technology is not being used efficiently.
Part of making your accounting tech user-friendly means that your files are easy to locate. Forget about paper pushing. We are in a time where all invoicing, filing, payables and cash management should be accessible online at the click of a button. It’s important to consider all the solutions that are available to improve your accounting tech. Your system should be simple, fast and user-friendly.
2. Does your accounting technology make information easy to understand?
Accounting should not be overwhelming or an added cost of doing business. It’s important that your system provides information in a simple, easy to read format. The goal is to help you become more profitable. Look for solutions that work for you and your needs. Every business is different but I guarantee there is a cost-effective solution to improve your accounting technology.
(Similar To: Does Your Company Need Outsourced CFO Services? )
3. Do you review accounting information routinely?
You’re busy and might not have time to take on another role. A great solution is to delegate the task. Find someone on your team and make sure it’s their priority to give you timely reports and financial information. When you receive these reports, review them, understand them, and apply your findings to current operations.
I’ve found that although business owners generally know the status of projects and finances, the financial reports will shed light on the causation of issues, problems that are lurking or success that could be further exploited.
If you’re not sure how to make these three items reality in your company, talk with your CPA or give us a call. We regularly assist clients in these three areas and are well-versed in the solutions. Remember, accounting doesn’t have to be a burden, so take action now to improve your accounting tech.
By Accountant at WHH
