The sad truth is that many businesses make bookkeeping and payroll errors that could have been avoided if the business was using an accounting IT solution. And having had many years of corporate experience, the size of your business seems to make no difference. When processes are highly manual, the volume of errors seems to increase.
For this reason, businesses large and small, need to pay attention to their accounting processes. Businesses who are wanting to grow, need to make sure that their business is optimized for success. They can do this by automating (as much as possible) basic yet pivotal functions like payroll and cash flows. The point here is that what appears like a cost may in fact be saving, as the automation of these key processes ensures you reduce your errors and as a result reduce errors.
Below are the main benefits of business in implementing an accounting IT solution:
Manual accounting practices increase the chances of errors in data collection and calculation. You avoid this by adopting accounting software, which automatically performs all calculations, accurately.
This is a massive benefit, especially if your company prepares detailed invoices in which specific items or worked hours are billed at various rates and various times. All you will be required to do is pick the items for invoicing, enter the quantity and the system will do the rest for you.
Accurate invoicing is fundamental to all businesses. Ensuring that you are collecting accurate data on the work you perform, the work effort your staff allocated to the job, additional costs you incurred, and how much you agreed to charge or will charge for the job is imperative to making a profit.
Finance solutions help by automating the invoicing process with templates, automating the collection of work effort data with timesheets, and automating the allocation of costs to jobs with expense tracking. This helps avoid the inevitable mistakes made by manual invoicing.
Cash Flow Management
With a cloud-based accounting system, you can record and track your payables and receivables. This enables you to know your current cash flow status, as well as predicting into the near future. For example, when all your bills and customer invoices are entered, you can use the reporting suite to understand if your receivables are enough to pay your future bills.
Accounting software solutions packages now have inventory tracking features that can accurately track your inventory and help to save time. You can now track product inventory and provide up-to-date details on the amount of stock you have on hand. They can track inventory as product orders are processed and forecast when you are likely to run out of stock. This allows you to order more items in advance.
The true beauty of the new wave of accounting management solutions is real-time insights. Most tools will have a live dashboard, that provides you with instant visibility of essential business information like how much is in the bank, how much money you owe and how much is owed to you. This financial transparency is pivotal to running a good business.
All in all
It may not be far away from when hiring an accounts payable person is no longer a necessity. Accounting IT solutions will revolutionize the time you spend performing basic accounting functions. It provides a robust, fast, and secure tool to help manage your business financials and can easily be scaled to meet the demands of your growing business.
If you are in need of an advanced IT solution for your accounting needs, visit our website, and let our experts help you today.