IMPROVE YOUR BUSINESS PERFORMANCE WITH CLOUD ACCOUNTING

 
Over the years, online technology has taken over the world and revitalised business as we know it. The world of accounting is no different. It has evolved and re-invented itself, thanks to cloud-based software such as Xero, Quickbooks and Sage One. South Africa was introduced to these systems about ten years ago. Whilst lagging behind when compared to other more technologically advanced countries, we are growing at a fast pace. More and more businesses are recognising the benefits of riding the cloud. The rise of cloud accounting has allowed accountants to have access to technology that streamlines their work processes. These new systems, in turn, allow you the business owner and your accountants to have instant access to important financial data and a range of business performance reports remotely.
 

What do we mean by cloud-based accounting?

 
Cloud accounting means using accounting systems that are executed using software that is hosted online (‘in the cloud’). This means that your financial information is stored, maintained, and accessed over the internet instead of your accountant’s hard drive or server. Sounds very simple, but it’s an experience that can dramatically transform the relationship you have with your finances and with your accountant.
 
Gone are the days where you did not have access to your finance information directly and had to wait for your accountant to send it to you. Gone are the days where distance and location when choosing an accountant was a factor. These days, a business based in Durban could be easily and efficiently be serviced by an accountant who is located in Cape Town. Cloud-based technology enables you to choose an accountant based on the services that they offer as opposed to their location.
 

Single Ledger Concept

 
If you have a traditional accountant, your usual accounting process is to send them a monthly bank statement and piles of receipts and invoices every month end, which is not exciting for any business. On their side, they then go through a cumbersome data capturing processes which takes time and delays the availability of your financial information. So your numbers are always delayed and this can be frustrating if you need financial performance reports monthly to assess your business and to make important business decisions.
 
Cloud-hosted accounts, on the other hand, can be accessed remotely by your accountants anytime without you ever having to send them information directly.  Bookkeeping is now automated. Bank statements are automatically extracted to the accounting system with no intervention required from your side.  Add on systems such as Receipt Bank allow you to capture copies of invoices and receipts by merely taking a photo and loading via an app any time of the day and your accountant will receive it on the other side.
With cloud systems, you are literally sharing financial information with your accountant 24/7 without having even to contact them. In turn, you can get a much clear picture of your business in real-time. No more month-end processes.
This approach is known as a single-ledger concept.
 

Real-time collaboration

 
With the single ledger approach,  your accountant will spend less time chasing you, searching for and loading your data on the system. Instead of number crunching, they are focused more on exploring what is going on behind your numbers. Identifying trends and patterns in your business, hidden issues that could be a hindrance and opportunities for you to increase your revenue, generate more profit or improve cash flows in your business.
These are all value-adding opportunities that you can benefit from. Accounting is no longer just about being compliant with accounting standards and tax legislation. Accounting is about using the numbers to enhance your business performance. Allowing your numbers to tell you a story about your business in real-time. Using your numbers to make informed business decision.
 
It is very exciting that more and more South African businesses are switching to cloud accountancy and reaping the benefits of greater insights and efficiency in their businesses. If you are still using old, outdated accounting processes and working with traditional accountants, it’s about time that you re-evaluate how much that really is costing your business.
 
At The Accounting Village we are cloud-based accountants serving clients who are serious about taking their business to the next level.  You too can have access to latest systems that are focused on enhancing your business. Get in touch with us here and we will be happy to assist.