7 Ways Technology Has Changed Small Business Bookkeeping

Thursday, 15 Apr 2021

The digital age has revolutionised the entire world. From faster communication to global reach, technological advancements have transformed the way we function. While business activities have been revamped, small business bookkeeping has reached the next level.

With the help of the evolution of technology, bookkeeping in Melbourne has become effortless and timesaving. It is no longer a labour-intensive task that takes hours to input data and maintain records.

The change has not been easy for small businesses since they had to deal with issues arising from cybersecurity and lack of digital infrastructure. However, over the years, adaptation has become easier and inevitable as it aids in making the business more productive and sustainable. Here is a list of seven technological innovations that have changed small business bookkeeping and made it easier and error-free.

1. Automation

Bookkeepers used to be loaded with never-ending work in Melbourne that involved manually feeding data into the ledger. Automation has come as a big respite for professionals who are now able to free up their time that was spent in data entry.

The most significant advantage of automated systems or software is that it eliminates the chances of human error. Thus, the calculations are accurate and do not need validation. The use of automated systems helps in completing tasks on time and utilise the spare time to offer invaluable financial advice to the business owner.

With less time and effort spent on data organisation, the costs related to accounting have also reduced. All the financial information is organised in a proficient manner and can be interpreted and analysed easily. There is no need for paper records which take up a lot of space and create too much hassle. Everything can be stored in digital form and accessed whenever required.

2. Cloud Accounting

With all the data now being created online, it was imperative to create a storage system. Thus, cloud computing came into the picture as it offered permanent storage of data in massive data centres that are shared by various other businesses.

Cloud accounting software is an extension of this technology that help with the number crunching part. The software is on the cloud and hosted on a remote server, so you do not have to store it on your private server.

Thus, the business owner does not have to install the software in every system of the company. The same dashboard can be accessed by all the members in the management and accounts department using the internet. All the information gets synced automatically in the system and multiple users who have access to the cloud can utilise it.

3. Payroll Software

With Single Touch Payroll (STP) becoming an obligation for businesses in Melbourne, reporting to the ATO for salaries, PAYG and superannuation has transformed. The new system has made it mandatory for businesses to send the report after every payday to the tax office in a digital format.

So, there is no need for a payment summary annual report or employee payment summary report. The bookkeeper provides the payroll information to the ATO online using the standard business reporting format. Thus, every business in Melbourne has online payroll software or desktop payroll software for the task.

4. Faster Payments

Making payments on time is one of the priorities of a bookkeeper so that there are no late payment penalties or missed deadlines that can affect the credit history of the business. The latest systems help the bookkeeper to stay up to date with the entry of transactions and make payments digitally without going to the bank or meeting the suppliers or vendors in person.

The advanced tools aid in identifying gaps in maintaining a balance between incomings and outgoings. Also, it helps to check the available funds with the business at any point to ensure whether making a purchase at that juncture is feasible or not.

These systems come in handy when the business is dealing with international clients in Melbourne and has to track the fluctuating exchange rate. The software takes care of this part and saves a lot of time of the bookkeeper.

5. Effortless Tax Compliance

Filing taxes in Melbourne becomes a cakewalk with the help of software. Small business owners can heave a sigh of relief as they do not have to keep track of the deadlines and the obligations related to sales tax, payroll tax and income tax.

Using the latest tools makes sure that the correct amount of tax is paid by the business so that they do not face losses or penalties. Bookkeepers can now file returns online rather than doing it physically using paperwork.

The returns are examined by the tax office and using software ensures that there are no errors in calculations. Also, you can use the right business deductions to save money and make your business profitable. Thus, the business owner in Melbourne does not have to get stressed or overworked during the tax season.

6. Mobile Bookkeeping

Smartphones have become the lifeline of people across the globe. Bookkeepers are not far behind as they can now utilise their mobile phones for accounting. The small device in their hands can be leveraged to generate invoices as soon as the goods are delivered to the client, check receipts received from suppliers, track all the transactions, check historical financial data, prepare reports, draw inferences, and analyse financial data.

Bookkeepers can stay in touch with customers in Melbourne by communicating with them using the CRM software installed on their phones. They can send emails, follow up with clients, send reminders to suppliers and do all the office work without even using the laptop or the desktop. It makes remote working possible as you can access real-time data from anywhere and at any time.

7. Customisation and Analysis

Every business is different and has its unique accounting, recordkeeping, invoicing, and tax filing needs. Modern software allows customisation, which bridges this gap and offers seamless integration into the organisation.

The user-friendly interface makes it easy to handle and manage data. Employees can look into the same information from their devices and all the reports get prepared automatically. Several employees in Melbourne can work on the projects at the same time from their workstations or home. 

It has helped bookkeepers to make auditing easier and less cumbersome. The changes in the tax laws and other state regulations get updated in the software and thus reduce the chances of inaccuracies. These systems are scalable and can be improved and expanded along with the progress of the business.

It can be integrated with other apps needed by the business and utilised for financial analysis, which eliminates the need for a financial advisor.

Endnote

Virtual bookkeeping in Melbourne has allowed small businesses to get rid of the arduous workload and have quick access to data. It has made processes more efficient and accurate. Thus, adopting technology has been a blessing for bookkeepers.

 

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