Computerised accounting systems are a convenient way of recording, storing, analysing and reporting financial information. At some stage, everyone will need to use this type of system to manage and submit their accounts, i.e. tax returns. This is due to the government’s plans for Making Tax Digital, which is now set to roll out in 2019. HMRC are currently trialling systems to enable digital accounting processes, but there are various systems already available, which businesses can start using to get ready for this mandatory change. In this article, we explore the benefits of computerised accounting for businesses:
- Reduce the time spent on manual processes
Computerised accounting uses sophisticated software to automate manual accounting and bookkeeping processes, such as complex calculations. For small to medium-sized businesses (SMEs), digital accounting will save hours of time and resource by enabling you to manage your accounts in a fraction of the usual time.
- Less errors and increased accuracy
Digital accounting ensures all entered data is calculated precisely, which means you won’t have to manually check your accounts every time you or a member of staff inputs new data. This includes income, expenses, transactional data, account reconciliation, period end adjustments, as well as stock and VAT.
- Real-time financial information
Computerised accounting systems are synchronised and aligned with your online bank account. This means you will always have access to up-to-date information on whether invoices are being paid by your customers, as well as your business outgoings.
- Automated invoices, credit notes and receipts
Many online accounting systems enable automated invoicing, crediting and receipting processes, which means you will remove time spent creating manual invoices, credit notes and receipts. Some systems also send chaser emails if debts have not been paid, which is a very useful tool for SMEs who usually do not have adequate resources available for debt recovery.
- Innovative financial technology
Many computerised accounting systems are cloud-based, which means you can download apps for mobile phones and tablets. This enables you to check your accounts at any time, no matter where you are in the world.
- Save money on resources
By streamlining your accounting and bookkeeping processes by using a computerised system, you (or a member of staff) won’t need to spend as much time managing your financial information. This will lead to cost-savings – many computerised accounting systems can be provided by way of an affordable monthly subscription fee.
- Faster record-keeping leads to more business
Due to automated complex calculations, continual awareness of your finances, and less time spent on processing and checking your accounts, you can spend more time focusing on your business operations and increasing your profit margin.
There are many computerised accounting systems available including programs such as Xero and Sage One. Each system has its own selling points, so we always urge people to review a system and check whether it’s the right fit for your business and operations.
If you would like to find out how you can implement digital accounting within your own business, please see our range of computerised accounting, bookkeeping and payroll courses. Whether you need to upskill yourself, your workforce, or you need to start from scratch, we can provide guidance and advice to help you find the right solution.
Please contact us for details on our range of courses – call 07903 245181 or email: email@example.com