Why Using An Accounting System Will Make You More Profit
29th May 2017
Guest Writer – Amanda Fisher
When you started out in your practice, you may have been told to use a spreadsheet to keep track of your income and expenses. Spreadsheets provide the basic information your accountant needs to prepare your Business Activity Statements and Income Tax Returns, but they don’t provide the information you need to grow your practice.
You went into practice to make money, right? So, let’s get serious about that and set up your accounting records to provide you with information that is useful to you.
Accounting systems are accurate. Xero and other online systems will automatically do the additions so that you don’t need to worry about whether the totals in your spreadsheet are correct.
Accounting systems ensure that all your income and expenses are recorded correctly. Accounting systems are based on all the transactions that go in and out of your business bank account(s). This means there’s no chance that you’ll miss a deduction or accidentally omit some revenue.
Accounting systems save time. When you use an online system, all the bank transactions will be automatically imported into the system and all you or your bookkeeper need to do is to allocate the income and expenses to the correct category. I have found that clients have saved 50% -75% of their time in this one area alone.
Accounting systems provide up-to-date information. This means that at any point in time your income and expenses is at your fingertips. There’s no need to manipulate the data in the spreadsheet.
Accounting systems will make you more profit. When you have access to current and accurate financial information, you can make informed decisions about your practice. You can see whether you’ve made the revenue and profit that you want and identify areas that you need to work on to improve your financial results.
If you’re using spreadsheets, today’s the day to switch to an online accounting system. Sure you’ll need to spend an hour learning what you need to do, but you’ll save countless hours in the future.
Author Bio: Amanda is a trusted advisor to business owners and a leading expert in applying technology and systems to improve efficiencies, increase profits and enable informed decision making. For more information go to: www.amandafisher.com.au
This article featured in the March Edition of Paeds Biz.