Make the switch to cloud accounting and grow your business

We’re experienced business accountants and as Xero Gold Partners, we consistently see exceptional results with the power of cloud accounting software in helping our clients to improve their financial position… all whilst saving them time and money! Whereas many people may be accustomed to older accounting software of the past that can often feel slow, unresponsive and clunky (thus costing you time and money), the cloud accounting experience is designed with the end user in mind. Because it’s so easy and user-friendly, the learning curve is easily overcome and we’ve helped even the most cloud-wary individuals quickly find their feet. Many of our clients have come to depend on cloud accounting software such as Xero, finding that it makes running their business a breeze.

Today, let’s explore how making the switch to cloud accounting can help you grow your business.

1. Say goodbye to confusing interfaces.

Xero provides you with clarity with a one-page view of your business finances, all in real time. This allows you to make better decisions that will benefit your business. This saving of your time allows you to also improve your cash flow by automating repeating tasks such as payroll and invoice reconciliation, as well as sending out automated invoice reminders. This means no more manual chasing up outstanding payments… the bane of many business owners’ existence!

2. Get access to analytics and insights that will help you increase sales and/or sign ups.

Many accounting software setups offer data… but if it’s unclear or difficult to read, you could be missing out on big opportunities to better understand your clients and customers. Cloud accounting software is more powerful than ever in 2018, and at the drop of a hat can give you invaluable data, including:

• Who your best customers are
• Your best selling products/services
• Where the profit margins truly lie (they’re not always where you assume them to be)
• Where you’re spending the most time in your business (and if this is of benefit or detriment to your overall productivity and profit flow)
• Each customer/client’s spending behaviour (and predictive factors to your sales funnel)

And this, of course, is in addition to the basics like inventory tracking, discount vs. phase out suggestions and profit & cashflow projections. With these key advantages, your overall business efficiency and productivity are certain to be improved!

Plus, if you’re using cloud accounting software that integrates your daily bank feeds, you can even reconcile your bank accounts each day with just a few clicks. We help many of our clients to make this a daily routine to help them stay fully on top of their bank situation, amount owing from clients and customers and required payments to any suppliers… all giving you a great overall picture of your business position. As a business owner, this a necessity!

And, with the right training and assistance from us, you can easily run simple reports that will give you your cash and profit position whenever you like. By outsourcing the heavy lifting of your accounting/bookkeeping to us and with the right tools on your side in cloud accounting software, you can rest assured in knowing that you have the most accurate information and expert advice to help your business grow and thrive well into the future.

3. Improve your (all important) customer service process.

With the time you save by automating vital processes such as payroll and chasing unpaid invoices, you’ll have more time to focus on other vital functions in your business such as customer service and seeking new prospects. Your cloud accounting software can even take it a step further by integrating custom notifications that allow you to follow up on seasonal sales opportunities, customer birthdays (and loyalty program incentives if applicable) and relationship milestones. As we know, customer service is a cornerstone of any successful business and your reputation (and thus, current and future success) depends on your ability to develop rapport and exclusivity with your ideal customers/clients.

4. Benefit from a shorter cash cycle.

Your business’ cash cycle, if you’re like most businesses, will go a little something like this:

• Creation of product/service ->
• Promotion of the product/service ->
• Sale of the product/service ->
• Payment by customers/clients ->
• Payment to your suppliers, employees and yourself

The pitfalls then come in when, for instance, raising an invoice is delayed and then payment by your customers is delayed for whatever reason (thus meaning you can’t raise the funds to adequately promote your product/service, which can lose you sales). Your cash cycle can then be pushed out significantly, throwing off the flow of your whole business. Too often, we see business owners who don’t truly understand the difference between profit than cash flow – often caused by a misalignment in figures (such as sales being higher than costs for instance… which would mean that a profit shows on paper but cashflow management is strangled).

If we inject the same scenario into a cloud accounting framework, invoices can be raised on the spot (even with a mobile device) or customers credit cards can be charged immediately. The result? You’ve got guaranteed cash on the way (or in the bank, right then and there!) and the flow of your business can continue in harmony. A business in harmony is then evident in your overall process management, allowing you to spot opportunities for growth – rather than your time being used up in chasing your tail over reconciling past situations!

5. The peace of mind that comes with increased security over your financial data.

This one comes as counter-intuitive to many… but your sensitive financial data is likely much safe in the cloud than it is stored locally on your computer. Cloud providers place security as a number one priority of risk management – and if you’re employing expert help on top of that through a Lawrence expert, you can rest assured that your data is entirely secure. Cloud accounting also provides an extra layer of security in that if a disaster ever occurs in your business such as a theft or fire (…touch wood!), all of your financial data is still safe and sound and can be accessed by you (and your accountant) wherever in the world they may be.

Cloud accounting allows for automated daily backups of all your data too, meaning that gone are the days of human error (for instance, if you go looking for something and accidentally make a mistake) as a big liability for your accounting data.

Does your business have a strategy in place to implement a cloud accounting solution?

If not, talk to us to receive the best advice on the solutions that might be right for your needs. We’re here to help and our expert team will help make your business finance management easier… giving you more time to focus on running and growing your business.

Contact us today for an obligation-free chat about the right cloud accounting options for your business.

This article is general information only. It does not give business, accounting, taxation, financial planning or other professional advice or service. It does not consider your specific situation, objectives or needs and if personal advice is required, a detailed analysis of your particular circumstances would need to be sought. Please see our Privacy and Disclaimers page for further information.