Having outdated or nonexistent accounting processes can really take a toll on a business, eating up valuable time and exposing the business to risks. As a cloud accounting firm, we see business owners regularly experience a common set of pain points. Cloud-based accounting apps provide business owners with solutions to their biggest accounting struggles while also adding value through enhanced security, efficiency, and collaboration. If you’re experiencing any or all of the following accounting issues, it might be time to consider new processes.
Human errors in manual data entry
With a lack of automation, human error can be a costly mistake that many small businesses can’t afford. When you’re manually entering data, you’re much more prone to misrepresentation of accounts, lost hours, and frustration. One extra digit, an entry into the wrong account, or a forgotten entry can throw off the books. A cloud-based accounting app offers automated solutions for revenues and expenses to reduce the risk of human errors. Cloud-based accounting apps can also give business owners a detailed view of the entire financial picture or specific accounts in order to find entries and understand the breakdown of accounts. Utilizing an app allows business owners to set up rules and internal processes for automated entries to ensure accurate bookkeeping that’s specific to the business.
Overproduction in accounting processes
Do you find yourself, and your team, doing more work than necessary? Chances are the answer is yes. Outdated, manual processes (or lack thereof) mean wasted hours on work that could easily be automated and simplified. When bookkeeping is a manual process, it’s common to see double entries due to a lack of integration between your books and other tools you may be using. Cloud-based accounting apps reduce overproduction and wasted time. Business owners can use a central back-office bookkeeping hub, such as Xero, along with additional industry and task-specific apps which seamlessly integrate with one another. These integrations allow business owners to make one entry, which is then automatically shared across the entire accounting process. Expense entry is one of the biggest time drains for business owners due to the amount of manual entry needed in multiple places. Using an app like Expensify can allow you and your employees to smart-scan expenses, which are then automatically coded in the app and relayed to your central accounting hub.
Technology-driven accounting processes are an ideal way to save business owners valuable time. Cloud-based accounting apps allow for real-time collaboration within the team, and with your bookkeeper and CPA. No need for emailing receipts, invoices, timesheets, and other documents back and forth. Real-time collaboration reduces and eliminates (in some cases) the wait time between steps that impact the business processes.
Underutilizing talent in key business functions
Many business owners know the key to success is to hire people smarter than themselves. While you may be the brains behind the company concept, product, or services, there is a good chance you are not the expert in every area of your business. Accounting, human resources, sales, marketing, law, and skilled trades should be focusing on what they do best. When you require them to manually enter expenses, time, and client invoices, you are underutilizing talent. If you have an appointed budget for highly-skilled staff and they are still performing low-value tasks due to a lack of automated processes, it might be time for a review of your business processes.
Scavenger hunts for information
You’re not alone in the scavenger hunt for information. Many business owners who have yet to bring their processes to the cloud spend valuable time hunting down information and documents needed to keep their back office up to date and compose financial statements. If your back office is a scattered mess, you are lacking the organization needed to make well-informed business decisions. Utilizing a central hub for your books is the extra hand you may need to keep your books up-to-date, with all information organized in one place. Pulling reports is simple and can be done from any supported device, in the office, or on the go.
Why is GCT a cloud-based accounting firm?
Over the years we have seen hundreds of businesses, small and large, work through bookkeeping mistakes and refine their processes along the way. We find that businesses whose back offices reside in the cloud have a better understanding of their financial positions, are able to make business decisions at any time, and are able to use their time on what moves their business forward.
As a business CPA firm, we find value in providing services that make our clients’ lives easier. If you’ve ever wondered how you could improve your back office, or frequently experience the above issues, it’s time to have a conversation. Our cloud accountants can identify areas of opportunity and recommend solutions that fit your business needs. Contact our team to schedule a consultation.