Written by Nick White, Bookkeeping and Advisory Team Manager at HKA
As your business grows, the accounting needs for your business will naturally become more complicated and time-consuming. The need to produce and send branded invoices, approve bills needing to be paid, and ultimately produce timely financial statements are key functions that will take more and more time as the business grows.
In today’s technology-driven environment, there are several great accounting packages that need to be considered to synergize the growth of the business. Xero and Quickbooks Online are two of the top examples. Both of these programs will allow you to view the accounting data at any time and anywhere (with an internet connection). Automation of repetitive tasks such as invoice creation, transaction reconciliation, and recording journal entries can be established to free up the time needed to build upon the growth areas of the business.
All of the above mentioned items lead to the ability to run real-time reporting out of the accounting package, which is crucial in making key management decisions. Are the products and services priced correctly given the market conditions? Does the business have the appropriate levels of inventory on hand? How much inventory will need to be ordered? Is the business running at the efficiency levels it needs to be? These are all questions that can be answered by having the real-time reports accessible.
Of course, having a strong accounting package that has the ability to synergize the growth of the business comes with a cost, even if the cost is minimal. For around $40 per month, Xero and Quickbooks Online will provide the functionality to perform the automation and reporting. The cost benefit is almost priceless due to the time saved on repetitive tasks, reducing data entry mistakes, and having data readily available to make key decisions.
Investing in the accounting package that fits well within the business is an essential stepping stone to the overall plan to grow the business. Spending the time upfront to choose the correct accounting software and processes will more than pay for itself ten fold almost immediately.