Accounting and business transaction processing technology has advanced relentlessly and continuously over the last 10 years, nevertheless the overwhelming majority of businesses and their accountants have been slow to adapt. Many businesses continue to use archaic desktop systems such as Sage 50, despite much of the tech being available as long ago as 2008. Smart use of tech will save businesses 70% of the time and cost currently spent processing transactions – that’s a demonstrable fact. On top of that, the opportunity to leverage meaningful and timely financial management data is potentially life-changing for business owners.
A few progresssive accountancy firms have embraced the cloud and the available technology and have supported their clients in migrating to that platform. They have redefined the services they provide, and have implemented modern paperless processes. The business’ data is no longer isolated on a desktop computer in an office. The cloud enables secure access to business data for those who need it – securely, constantly and globally. Not only is any required support available immediately, but the value of being able to engage with professional advisers swiftly and efficiently is immense.
It’s now practical for businesses to engage a ‘virtual finance director’ service, ensuring the accuracy and completeness of the records and providing meaningful and regular management reports to business owners, lenders and investors.
Businesses also benefit from streamlined data entry tasks by utilising bank feeds and the automatic entry of invoices and receipts which typically saves them 60% to 70% of the time previously spent completing those tasks, and improves accuracy at the same time.
Tech enables those clients which adopt it, supported by their accountant, to convert their bookkeeping system into a valuable business management tool. The benefits are tangible and dramatic.
Tech-savy accountants have been using and promoting these systems since 2009. For everyone else Making Tax Digital (MTD) provides them with an outstanding opportunity to persuade themselves and their clients of the sense in transitioning now, albeit late to the game. Without the efficiencies and integrations available through cloud accounting, such as XERO, ClearBooks and Quickbooks, clients will struggle to meet the imminent MTD reporting requirements efficiently and economically.
Give us a call now if you need help transitioning and adapting to the new technology in time for MTD in April 2019. Time is fast running out.