Accounting software expedites all the financial aspects of a small business in Australia — accounts payable and receivable, general ledger, revenue, expenses, cash flow, you name it. Still, around 15 percent of Australian small businesses use no accounting software at all, while others rely on old, outdated software that provides little value.
Digital accounting tools are more important now than ever before. As the pandemic continues, small businesses have additional financial responsibilities, such as facilitating overtime and administering business stimulus incentives such as instant asset write-off and income tax withholding. Legacy software just won't cut it.
Here are three signs that it's time to update your accounting software:
Your software won't automate
Accounting has become a burden for Australian small businesses, especially during the pandemic. Forty percent of small business owners spend more than 80 hours a year on accounting and taxes — that's around 10 workdays. We're sure these small business owners would rather spend time doing something far more productive like growing their business.
Part of the problem is the lack of automation. Small business owners with outdated accounting software still have to enter data into systems and carry out other manual tasks that zap up time and labor resources. For many, the accounting process is as painstaking as using a calculator — or even an abacus!
What's the solution?
The latest digital tools such as Xero automate many of the tasks associated with accounting and taxes:
- Identifying transactions
- Managing cash flow
- Preparing financial statements
- Reporting taxes
This lets Australian small business owners speed up accounting workflows and "close the books" in a quicker timeframe.
Not all modern accounting software is the same, mind. Ultimately, you should choose a tool that keeps your financial data safe in the cloud. This way, you can always access information, even in the event of a natural disaster or another emergency. The most successful Australian businesses incorporate cloud technology into their accounting pipelines.
If you're looking for other ways to optimise your accounting responsibilities in 2021, we can help. Here at Trekk Advisory, we provide a suite of services for Australian small businesses that want to speed up cash flow, financial reports, and other accounting and tax workflows. Discover more here.
Your Software Doesn't Provide Real-Time Insights
Australian small business owners need to access real-time financial insights and intelligence, often without a moment's notice. This helps them make quicker, smarter decisions, especially at this unprecedented time.
Business owners should keep a close eye on cash flow and expenditure — or risk job losses or, in the worst-case scenario, closure. This might sound like scaremongering, but businesses need to prepare for the future and mitigate risks. Good-quality accounting software helps them do this.
The most effective digital tools for accounting provide real-time analytics. Xero provides your business with up-to-the-minute business reports for the following:
- Account summaries
- General ledger
- Detailed transactions
- Profit and loss
- Trading income
- And much more
Here's what some of our clients have to say:
"There is always that one person who likes to buck the trend. A person who is reluctant to change because they just don’t know if it will work. Well, that person was me! I resisted moving to Xero, I didn’t want to be on the same bandwagon as everyone else. I was scared to change because I felt like I had only just got my books under control.
But…. Xero has simplified my life. In more ways than I care to admit. I spend less time doing the bookkeeping chores and more time doing the things I enjoy. We have moved to an almost paperless accounting system and reconciliation is no longer a monthly nightmare.
Oh and Superannuation, well that is a dream…. all over and done within a few clicks. Change to Xero today, you won’t be sorry."
Owner, Q Energy Solutions
"We have been using another accounting program for around 20 years. Within the business community we had heard great things about Xero, so decided we would change over and see how we went. Understandably we were quite nervous at the change, as we are not real tech savvy.
The Trekk Team were absolutely brilliant with importing everything over from the other program. They gave us a run down on Xero and a tutoring session on how to do everything. If there are any times where we are unsure of what to do, the team are more than happy to talk us through the steps.
We are so impressed with the Xero program that we wish we had changed sooner. It is so user friendly, and everything you need is at your fingertips. We love the Dashboard, where you can see all your accounts receivables and payables, without having to go into different reports. Visually it is just so much easier to interpret what you need. Xero also has the facility so our accountant can access everything at the same time we are, which streamlines the accounting side of the business even more."
Owner, MC Scaffolds
shows more businesses are using
data analytics to survive COVID-19 and the subsequent economic
Your Software is Too Slow
This one's a major bugbear for growing Australian small businesses. Slow accounting software poses many risks, such as missed timelines and inaccurate financial predictions. Slow software might not seem like a huge problem, but it could spell disaster for entrepreneurs. Missing a tax deadline because of outdated software, for example, could result in expensive penalties.
There are other risks associated with slow accounting software. Research shows that slow tech compromises productivity and impacts employee morale.
"Over time, your employees will grow more frustrated, aware that they aren’t working to their full potential, and that frustration will result in many hours of lost work (not to mention higher absenteeism)," says the Information Systems Audit and Control Association (Isaca).
Because of COVID-19, many small companies in Australia have had to change their accounting processes rapidly. As a result, many of these businesses have discovered their accounting software is too slow, won't automate, or doesn't provide real-time insights. Invest in new digital tools like Xero for better business growth at this uncertain time.
Want to optimise your accounting even further? Trekk Advisory specialises in consulting and accounting services for small business owners like you. Learn more here.