Why cloud accounting software pays off for small business
A few years ago, many small businesses still kept their books in a spreadsheet or a desktop program updated once a quarter. Today, cloud accounting software is the standard, and for good reason: done properly, it saves hours every week and gives you numbers you can actually run the business on.
What it does
Cloud accounting software, such as Xero, MYOB Business and QuickBooks Online, keeps your books online so you, your bookkeeper and your accountant are always looking at the same, current figures. The main features:
- Bank feeds: transactions arrive automatically every day, ready to reconcile.
- Invoicing: send invoices from your phone, with online payment links and automatic reminders.
- Bills and receipts: snap a photo or forward an email, and the bill is captured and attached.
- Payroll and Single Touch Payroll: pay runs, payslips, super and STP reporting to the ATO.
- GST and BAS: GST is tracked as you go, and the BAS can be prepared straight from the software.
- Reports: profit and loss, balance sheet, cash flow and aged debtors whenever you want them.
Why it pays off
Time
Bank feeds and rules code most transactions automatically. Receipt capture ends the shoebox. Invoices go out on the spot instead of at the end of the week. For most businesses, that’s hours saved every week.
Getting paid faster
Online payment links and automatic reminders reduce the time customers take to pay, which goes straight to your cash flow. See profitable but cash poor?
Accuracy
Fewer manual entries mean fewer mistakes, and GST is calculated consistently. That means a BAS that’s right the first time.
Real-time numbers
You can see how the business is going today, not three months ago. That makes it possible to track KPIs, spot problems early and make decisions with confidence.
Working with your accountant
Your accountant can log in, see what you see, and answer questions without you exporting files. Year-end and tax planning start from clean, current numbers.
Add-ons for your industry
Job management for trades, point of sale for retail, practice management for health, inventory, rostering and more connect directly to your accounting.
Setting it up so it works
The software is only as good as the setup. Common problems we fix:
- a chart of accounts that doesn’t suit the business,
- bank feeds not connected, or personal and business spending mixed in the same account,
- GST codes set up wrongly, so the BAS is wrong,
- payroll not set up for the right award, super and leave,
- thousands of unreconciled transactions because nobody kept it up.
Get the setup right, then reconcile weekly. See how to keep accurate business records.
How we can help
Judge Accountants is a Xero Platinum Partner. We set up Xero from scratch, convert files from MYOB, QuickBooks or spreadsheets, clean up files that have got away from you, and train you to keep them current, or do the bookkeeping for you from $90 + GST a week. A Xero Grow subscription is included in our Compliance, On Track and Growth business packages.