How Has Technology Changed Small Business Bookkeeping?

Friday, 28 Feb 2020

The technological advancements that surfaced in the last few decades have revolutionised the way we interact, work and do business. From high-speed data connections and voice recognition systems to AI, the latest innovations are becoming increasingly prevalent and mainstream.

They have made our lives easier by reducing the need for manual labour and have helped in saving time through automation. Bookkeeping has significantly benefitted from this progression as the time-consuming data entry tasks have become obsolete due to digitisation.

The development momentum has continued with various bookkeeping companies in Melbourne opting for cloud-based accounting software to manage the accounts of their clients securely and efficiently. Let us take a deeper look at what changes have taken place in the domain of small business bookkeeping.  

Cloud-Based Accounting Software

The significance of specialised software cannot be overstated. The accounting software has helped bookkeepers to move away from the ledger–based chores and filling up Microsoft Excel sheets with heaps of financial information. The software is equipped with processing features and offers a quick output.

It reduces the chances of human error, and the cloud-based system allows the use of a centralised server and safe storage. The advanced system does not require downloading and setting up. It only needs logging into the account and continuing with your bookkeeping tasks.

The software provides automation facility wherein updated bank statements are automatically imported into the system to give you immediate access to current data. It also helps in keeping the backup safe and secure for easy access in Melbourne or anywhere else in the world.           

 Accurate Financial Reporting

The bookkeepers now have the advantage of using error-free and timely financial reports with the help of accounting software. The business owners in Melbourne can evaluate the financial well-being of their organisation at the click of a button.

It aids in making informed business decisions that are supported by factual data. The dashboard display offered by the software is user-friendly, and anybody can be easily trained to manage it.

You can analyse the sales, inventory and purchase reports and evaluate the profit and loss statements, cash flow statements and balance sheets before allocating funds to a project and determining its feasibility. All the data is organised in one place neatly and can be pulled up at any moment.

Single Touch Payroll Compliance

With Single Touch Payroll becoming mandatory for all businesses in Melbourne and across the country, the software has become compliant as well. It gives the bookkeepers the freedom to work on payroll from anywhere and any device.

The payroll data can be submitted to the ATO within a few minutes, which saves a lot of time and effort. The software assists in automatic PAYG calculations and tax deductions. It also aids in streamlining superannuation with an easy process.

Since all the financial information is ready and updated, the entrepreneur doesn’t have to check all the transactions to submit the tax returns.

Submitting Tax Online

Traditionally, the tax season was considered a dreadful time by entrepreneurs in Melbourne as they had to sift through scores of financial data to file taxes. However, the ATO has done away with the paperwork, and the taxes can now be lodged online quickly and effortlessly.

The information of the small business is effectively protected by the office, which offers the submission facility 24/7 and processes the refunds within just two weeks. The tax return can be lodged with any device and even reviewed before submission.

The financial data accumulated from the software ensures that the reports are accurate and eliminates the chances of facing tax penalties in Melbourne.     

Staying Updated on Payments

The accounting software allows you to generate electronic invoices which also aids in becoming an eco-friendly entity in the city of Melbourne. The invoicing feature helps you to keep track of the payments that have come and those which are pending.

The unpaid invoices are notified to you through the dashboard, and the software has a feature that sends reminders to clients. It provides the payment options within the invoice so that the clients don’t lose their money during the transaction.

Once the payment is received, the data is automatically updated in real-time. It avoids any delayed payments and maintains the cash flow and reduces losses.              

On-The-Move Accounting

With fast-paced systems embracing the small business setups in Melbourne, it has become necessary for bookkeepers to be on the top of their game at all times. The cloud-based systems allow real-time data access from anywhere at any time.

You can work from home or while travelling to work with the help of a small business accounting app on your mobile phone. All the users of the software can take advantage of this feature and take a look at the financial reports at any given moment.

It helps in better networking and connecting with people who are placed in different geographical locations. The bookkeepers can send invoices, create expenditure claims, gather signatures and capture receipts using their smartphones.

Better Inventory Management

Accounting software comes equipped with features that allow tracking of the inventory and gives an accurate estimation of the stock in hand. It keeps updating the numbers as the orders are processed and send notifications to users to inform them about the upcoming replenishment dates. It saves time and effort spent in manually calculating the orders and the stock pieces.

Financial Advice from Bookkeepers  

As technology is automating processes, it has helped in saving a lot of time and costs of businesses. It permits the bookkeepers to focus on other important aspects of developing the business.

With insightful and in-depth reports at their fingertips, they can perform accurate evaluations and provide the entrepreneur with financial forecasts. They can work on improving the bottom-line and reducing taxes and find new ways of boosting the flow of cash into the organisation.

As they have more time at their disposal, they can become financial advisors and help in financial planning and consulting.

Data Protection

The accounting software provides the control of access to the bookkeeper in Melbourne who can add users to the account and can control how these users utilise the account. All the financial data of the business is encrypted, and the users have to go through a two-step authentication to log into their account.

Besides these, the cloud storage system utilises firewalls and has backup data protection sites to keep sensitive information safe in case of a disaster that affects the hosting facility in Melbourne.

Conclusion

The changing times have led to the development of bookkeeping which has transformed into a more diversified and critical function for small businesses. The evolution of artificial intelligence will further change the role of bookkeepers in the future, and the businesses must be prepared to adopt these modifications.           

 

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