Figure 1: Welcome to 2016! Have you considered cloud accounting and its benefits?
About three years ago I went to my parents' place for dinner and whilst waiting for my father who was having a couple of his customary Friday night drinks at the local hotel with his mates, I explained to my mother about how we were taking our clients to the 'cloud'.
Mum was extremely interested and when dad walked in the door she exclaimed "Laurie, I've just been talking to Pete and he's taking his clients to the moon!". Needless to say, Dad who had been drinking shook his head and replied "Wow, where's he going to get the spacesuits?"
If you're not on the cloud for your accounting and if what you have is working for you then great. If you would like to know some of the benefits though then you might find some of the points below interesting.
1. Access from anywhere as long as you have internet
With cloud accounting, not only will you be able to access your system from anywhere (provided you have internet), but also by being able to use your smart phone or tablet this means you do not have to lug a computer or laptop around to find out how your are travelling financially.
2. make it easier for your accountants to monitor
Your business advisors and accountants can with security permission also easily log in to assist you with any bookkeeping or financial information queries. Gone are the days of having to go in via a terminal server which can be slow and not smart phone or tablet friendly.
Figure 2: Enjoy the ease of access from almost anywhere in the world to your financial information securely.
3. improve cash flow
Most systems on the cloud make it easier to issue invoices on the run and with a push of a button email them as soon as the job is finished. Tradespeople particularly such as plumbers, electricians, handymen now don't have to wait to get back to the office to do up an invoice and send in the mail. Automatic statements prompting payment can also be set up so that you can take that off your list if somebody is being slow to pay.
From our clients that we have converted to the cloud, we have examples of businesses improving the time on average it takes to get paid from 35 days down to 20. Let's say you turnover (gross revenue before expenses) approximately $1,000,000 a year. This would mean that you would have an extra $35,000 in your bank at any one time. Certainly not small change and consider the interest you save and the things you can use this money for to improve your business and make it better. These are things that have often been put off because the business did not have the cash flow to afford it.
By having a cloud system that improves liquidity, we can then sit down and do some cash flow forecasts and determine what the bank balance should look like over the next 12 months.
Figure 3: Spend more time on the golf course and less time behind the desk!
4. do more with less people
Most cloud programs will download bank transactions every night and will even prompt data entry as to where that transaction went to last time.
This saves time and money as does the automation of certain tasks such as statement automation mentioned above.
5. save computer licencing costs
Most systems in the cloud are much cheaper to set up and run (compered to desktop) these days as most are what is known as Software As A Service (SAAS). Many allow unlimited user licences and support charges are minimal.
Many business owners have jumped on the cloud accounting bandwagon and generally are extremely happy they did. If you have any queries about the above and the many other benefits your business can enjoy then please get in touch with us so we can explain these further.