Nitschke Nancarrow managing partner Kym Nitschke explains how small business owners can save time and money by embracing online accounting software.
If you run a small business of any kind, you likely spend much more time on accounting than hoped.
Unfortunately an ineffective accounting system adds countless hours to an already long list of tasks.
But there are easier ways to keep your books in order to not only save time, but also make better business decisions. As specialists in strategy and accounting for small businesses, we can help you set up your accounting and bookkeeping processes to improve efficiencies and profit, while reducing stress.
Here are some key tips to get you started.
Embrace tech
Gone are the days of painstakingly poring through endless printed pages and excel sheets. Instead, bookkeeping has been revolutionised through sophisticated online accounting software that has become a gamechanger for helping business owners quickly collect, maintain and interpret financial data.
Cloud-based software, such as Xero, makes it far easier to track income and expenses, send invoices, reconcile bank accounts and generate accurate reports. With the click of a few buttons, anyone can pull information in user-friendly formats, like profit and loss statements, as long as they have access to a computer and the internet.
By automating business processes as much as possible, the likelihood of human error is significantly reduced. But more importantly, small business owners now have the time to explore solutions for business growth. Additionally, accountants can use the time spent checking figures to find tax and business solutions and opportunities.
And when business starts to grow, your bookkeeping and accounting system scales with it.
Digitise data storage
Accounting software is built to be safe, secure and compliant with local legislation. Additionally, all data is stored in one place — a convenient side effect of online accounting software.
However, to take advantage of online data storage, all documents need to be digitised. As a safety precaution, get into the habit of storing documents in different digital locations.
It’s also far easier to keep track of receipts now as all you have to do is take a photo of the paper bill and then categorise it correctly.
Get everyone on board
An organised accounting system will be crippled without a dedicated team supporting it.
If you’re launching a new online accounting software, spend some time with the employees who will use it to explain the complexities. Often one task requires multiple users, so make sure each staff member understands their unique role in the process.
You may also need to provide refresher courses to make sure all team members are correctly following the accounting procedures and using the system properly, especially when the provider updates and improves its software.
To create less stressful financial processes, entrench helpful habits like regularly categorising expenses or reconciling accounts.
When tax season rolls around, you want to make sure you are ready for it.
Which software will you choose?
Nitschke Nancarrow is a certified Xero accounting practice to our clients because it is designed with small business owners in mind. The systems are easy for anyone to understand and navigate, the software is built to integrate seamlessly between businesses and their accountants/advisers and there’s plenty of power available at a relatively low monthly subscription cost.
That said, business owners should do their research and find the right software solution for them and their business.
Pair software with great advice
Streamlining small business accounting doesn’t mean relying on software alone. You need to partner with an experienced, tech savvy accountant who can ensure that your financial processes are as efficient as possible, and that your software and tech solutions are working for you, not against you. It’s highly recommended to have an expert oversee your bookkeeping process to also help interpret reports and unlock any potential insights that you may not have noticed. Without this support, most business owners are using only a fraction of the potential available to them through technology.
Do you need help streamlining your accounting processes?
At Nitschke Nancarrow, we help fast track small businesses. Let’s talk about your needs. Contact us now.
Find out more about what we do for doctors along with medical practice advisory.
The information contained on this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
Taxation, legal and other matters referred to on this website are of a general nature only and are based on Nitschke Nancarrow’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.
Nitschke Nancarrow specialises in accounting, tax and financial advice for superannuation. Contact us now for a no obligations discussion about your needs.
