How Covid-19 will further the need for efficient accounting

COVID-19 highlighted one thing in particular. Some organisations were better equipped to cope when it hit. With everyone out of the office, for businesses slow to adopt cloud-based accounting, things were tougher. 

Traditional accounting approaches mean it just isn’t that easy getting access to figures and information when everyone’s working from home. Companies that could still see their financial data had a considerable advantage during lockdowns. If remote working is set to remain after the pandemic, then the present time is high time to switch.

There has been a lot of talk over the years about cloud accounting and the benefit it brings to a business. Cloud accounting is having your information in a system on-line that can be accessed by the key stakeholders for example the business owner, the bookkeeper, the accountant.

There isn’t a small, medium, or gigantic business out there that wouldn’t benefit from real-time reporting through Xero or another medium. Cloud-based accounting data can be accessed from any device, whether an employee is working from home, riding on the bus, or in the office. On top of that, you can set access limits for different users based on the role they occupy; you can grant access to payroll-relevant data for the people doing payroll, for instance. Because cloud-based accounting systems update financial data constantly and instantly, reporting takes place in real time. There’s no delay, and your accountant knows your cash position at all times.

The main advantages of cloud-based accounting – and how to get them right now.

The pandemic aside, cloud-based accounting is just more efficient than traditional methods. There’s far less data entry because you can automate many processes that were time-consuming in the past. You can link your bank accounts, invoicing, and other systems and eliminate the need to compile reports for your accountant simply by granting them instant access to the big picture.

A good system should be able to do the following.

• Enable accurate cash flow forecasting based on a real-time snapshot of where your business is at every time you log into the system. Even a relatively minor cash flow issue can be fatal for smaller companies, and problems often arise because everyone failed to see them coming. Cloud-based accounting makes it easier for financial professionals to help with financial forecasting allowing them to spot patterns, predict future bottlenecks, and stop them before they occur.
• Provide multi-user access and tailor that so the people who need specific data can get specific data. Enable your accountant to take care of payroll and even finance applications quickly and easily.
• Implement online invoicing to make your business run more smoothly and streamline revenue collection.
• Provide a snapshot of how much per day your debtors are costing ( for example, you are owed 30,000 it is taking 30 days to get paid, therefore for every day you can reduce that you are 1,000 better off cash wise).

Continuous, real-time accounting enables your accountant to do more for you and automates many of the tasks you used to do while you wanted to get on with running your business. If you’d like to learn more about how the team at RDA Accountants is helping businesses of all sizes during the pandemic using cloud-based accounting

All the best and stay safe.