If you are a small business you may rely on manual accounting. Amongst the boatloads of paperwork, time and effort put into manual accounting, you may find yourself slightly in over your head as your business grows. This is why it is always recommended that every business embraces technology as it expands, especially when it comes to accounting. Automated accounting is a fast, efficient and cost-effective method of accounting that can reap you a multitude of benefits. In this article, we look at how outdated accounting can cost you more than time, so read on to find out more.
1. Are You Keeping Up With ATO Standards?
One of the most pressing issues when it comes to manual or outdated accounting is how it may no longer comply with the standards of the Australian Taxation Office. As of June 2018, any business that has twenty or more employees is required to utilise single touch payroll when it comes to reporting employee paychecks. Businesses will have to utilise one touch payroll software that reports payroll to the ATO on a monthly basis, as opposed to previous standards of quarterly or biennial reports. If your company is still relying on outdated accounting, you may just find yourself in hot water with ATO, something any business owner should try to avoid at all costs.
2. Errors Can Be Expensive
Human error is unavoidable, which is why automated accounting software is often recommended when it comes to handling your business finances. Whilst small errors in manual accounting are easily rectifiable, there are bigger errors which could cost your business a lot of money. Incorrect data entry could cost you thousands, or even get you into trouble with the taxation office. Thankfully, with automated accounting, you completely eradicate the potential for human error, all whilst saving you time and giving you the opportunity to focus on other aspects of your business.
3. Time Is Money
In business, time is money and time wasted is money down the drain. With outdated accounting, excessive amounts of time are used up preparing accounts and balance sheets. Embracing technology and utilising automated accounting software can save your business a huge amount of time that can be used for tasks such as focusing on revenue-generating activities, on-boarding of new customers or working with suppliers.
4. Internal Optimisation
Outdated accounting makes it a very difficult task to optimise your business, especially when it comes to your inventory. Managing stock manually could lead to huge errors in holding liability. Automated accounting allows your business to efficiently and accurately manage inventory, lowering the liability you hold and increasing your overall level of efficiency.
5. Are You Missing Out On Forging Strong Relationships?
Last but not least, outdated accounting could be the reason you are missing out on forging strong business relationships. When you manage cash flow manually, you may miss out keeping a note of the account history of orders and their quantities. Automated accounting systems enable you to keep track of your customer history allowing you to give them a higher level of personalised customer service. This, in turn, can help you forge strong relationships with your customers, thus leading to repeat purchases and the increase of your business reputation. Take your relationships with your customers to the next level with the aid of automated accounting systems.
We hope that this article has given you some insight into how outdated accounting may be stifling the growth of your business. If you are looking to expand your business and keep on top of your accounts, we urge you to embrace automated accounting today.