Tune Your Financial Processes Through Automated Bookkeeping
At Next Level Accountants, we speak to many businesses about their accounting and bookkeeping practices. This conversation covers all the usual topics; accounts payable and receivable, purchase orders etc. and how their current processes work within their organisation. More often than not, business owners assume their current methodology is how all businesses manage their finances. They think that their processes are optimised, they are making best use of their resources and that there is no need to look for a better way.
For us, this conversation is music to our ears. We love the sound of pen on paper noting down figures, dates, invoice numbers and the like because we can do what we like to do the most - silence that sound with automation.
Bookkeeping and Accounting Automation tools quickly make business owners question everything they once knew about how to organise their business’ finances. Suddenly, they are a lot more invested in how their financial processes affect their business and what they can do with their newly freed-up man hours.
We have written a short guide to help initiate this conversation and demonstrate just a few of the benefits of partnering your business with a technology-driven accountancy firm:
1) Identifying the source of your documentation and reducing manual entry
Assessing the origin of documentation is the first step in creating a leaner, slicker process. There are high overheads associated with manual data entry, which can be quickly reduced to nil through implementing the right software. With this process in place, a team member’s role can be adjusted to something more beneficial within the business.
2) No Human Error
Manual bookkeeping can be expensive, but what can be even more expensive is imprecise manual bookkeeping. It’s no secret that everyone makes mistakes from time to time, which is to be expected in the workplace. Mistakes can be reduced through training, hiring staff with more experience and triple checking entry tasks. However, all of these require additional time and increased overheads. Mistakes can be avoided entirely through the use of automation software, which scans documents and translates them into spreadsheets or whichever format is required for the task at hand.
3) Passing on the Savings and Progressing the Business
With the reduced time spent on the more laborious aspects of financial management, there is now more time and budget that can be used to progress the business. A deficiency that many small SMEs have is a lack of expert financial guidance. Many large organisations have an in-house CFO (Chief Financial Officer) to help steer the financial ship and generate increased revenue. This is achieved in many ways, but the key areas a small business would benefit from our:
- Identification of inefficiencies within a business and departments
- Structuring of the business in a way that is tax efficient
- Analysing financial risk for investments and projects
All of the above and more can be achieved for an SME through utilising a vCFO service (Virtual Chief Financial Officer). This is a service that we highly recommend to our clients once they have their bookkeeping in order and are ready to take advantage of their extra resources.
If you would like to learn more about how Next Level Accountants can assist your business and deliver financial success, contact us today on 03 9040 1520.