A recent study by the Australian Bureau of Statistics shows that 1 in 7 (roughly 14%) of small and medium sized businesses aren’t yet using basic IT for their day-to-day accounting processes. And we think it’s probably a bit higher – maybe one in four or five (20-25%) in microbusinesses*.
Yet, that same survey also found that 85% of business internet activities are deemed to be financially oriented (for example: online banking, invoicing, making payments to other companies, etc).
So we thought it might be good to talk about the benefits of introducing an online accounting software into your business. And those benefits can be summed up in four quick points:
Minimisation of manual data entry and errors = time saving
This one is not only self-explanatory – it’s the greatest benefit of all. Think of the time you would have spent (entering data and/or going around in circles looking for errors) that you’ll be able to spend on other more meaningful things – like actually working on revenue creation activities instead of your dreaded and, let’s face it, far less exciting paperwork.
Or maybe you could actually take a weekend off.
Knowing where you’re up to at any given point in time = easier follow up if required
Using online accounting software like Xero to manage your business means that all your banking transactions (outgoing and incomings) are listed for you to see. You can also use it for creating your invoices and it will data match what comes in against the invoices you’ve sent out. All you have to do is check and click okay if your program’s matched up correctly.
Best of all, you can see who’s paid and who’s using your business as a lending institution and easily send them a statement to hurry them along.
Increased business mobility = cost saving & freedom
Having your accounting processes online, means that they can be accessed from almost anywhere – including your phone or your iPad/tablet. That in itself is likely to give you the greater freedom you dreamed of when starting your business. But it also means that your accountant or bookkeeper can also log-in from wherever they find themselves. That means you pay for their great advice rather than for time spent behind a wheel.
Higher competitive advantage in your industry = more time for real business
By easing manual accounting workload off of your (or your team’s) shoulders, you’ll have more time to focus on growing your business and searching for your next big opportunity.
If you’d like to take your business accounts online so that you can save time and cost and better focus on the things that make a difference in your business, we’d be delighted to talk to you. You can call Kerry on 6023 1700, drop us a note or connect with Kerry via LinkedIn.
Wondering what the definition of microbusiness is? If you’re self employed or have four or less staff members, that’s you.
- And FYI – small business is defined as between 5-19 staff members
- Medium business is 20-199 staff members
- Large business is 200+ staff members
According to the ABS there are just over 2M small and micro businesses and they account for 95.6% of all Australian businesses (and more than half of those are situated in NSW or VIC).