31 August 2016
Xero, a popular accounting package for small businesses, is currently advertising that its popular features will ‘change your life’. We can’t promise that, but can assure you that updating software such as MYOB, Xero, and Quickbooks will allow you to make some changes that may assist in reducing compliance costs and improving your record keeping.
- At a very basic level there is benefit in us both working off the same file
The uptake of cloud computing enables flexible work practices and it means everyone is working off the latest accounting software version which will enable you to use the product to its full potential. It eliminates the need to upload and download files, which reduces the risk of using the wrong file andit prevents data having to be double entered, and consequently reducing risk or error.
- Reducing time spent on Data Entry
If you aren’t using the bank link element of these programs you should be. They will reduce the amount of data entry required and the time to do a bank reconciliation. The program will download the bank statement transactions and can be ‘taught’ to recognise and code recurring entries.
- Record Keeping
These programs are moving to an environment with the capacity to attach all of your invoices supporting your claims for tax deductions and GST. This will make it easy for you or for us to come back to check data, and it will provide you with electronic records to satisfy the ATO’s requirement that you hold your records for five years.
There are lots of great apps that can extend the basic reporting functions of these packages allowing tailored reports, or the reporting of key performance indicators in a dashboard format highlighting the most important data and anomalies for you.
- Thinking about tomorrow
Cloud technology is one of the fastest growing developments for businesses of all sizes to keep their eye on. Some of you may need to take a leap of faith and commit to benefits that these services can offer. Investing in a cloud based system for a business and then only using the basic features is like purchasing a smart phone and only using it to make phone calls.
BDO can assist you in taking up some excellent deals on offer at the moment from the suppliers of MYOB and Xero, so please feel free to communicate with our staff about this.