Traditionally, clients and their accountants are constantly so busy finalizing historic information and submitting statutory returns, that there is little to no time to use the financial information to make informed and proactive business decisions that are necessary for their business to not just survive, but to become a healthy and prosperous business.
While everyone is always trying to catch up with historic information, you risk losing control over your business financial position. Jaco Myburg, registered tax practitioner from JM Accountants, understands that managing a business can be a lonely journey and he believes cloud-based accounting software can assist accountants in providing their clients with value-added services and relevant management advice.
Utilizing cloud-based accounting software in your business will not only save you money. It has other benefits:
- Your accountant will have time to give you the value-adding services that you need and deserve, to build a successful business i.e. up-to-date financial statements, Budgets, Cashflow Forecasts, Strategic Planning, Tax-Planning, preparing to sell your business, etc.
- Cost savings will enable you to appoint your accountant to deliver these crucial value-added services since you will be saving on your accounting expense.
- You will have the necessary information that all the other professionals and advisors (i.e. financial planners, insurance brokers, estate planners, business brokers, business coaches, personal coaches, etc.) will need to service you properly. They are able to give you the best advice you need if your financial reports are up to date and available when necessary.
Implement Cloud-Based Accounting Solutions
With the latest cloud-based accounting solutions like Xero and Receipt Bank, it is now possible for clients to have up-to-date financial information using these solutions to electronically record day to day transactions as and when they happen. This is the simplest form of accounting and this way you can attend to the more complex and important financial tasks in your business.
The advantages of cloud-based accounting
- Transactions are recorded electronically, as it happens, in a format that you and your accountant can use.
- You and your accountant have access to the same up to date information and one need not wait for the other to capture information, saving a lot of time, energy and ultimately money.
- Information can be accessed from anywhere if you have access to the internet.
- You don’t have to spend time and money on filing as all transactions are filed electronically and are available any time and everywhere.
- No more outdated software as your cloud-based software provider takes care of that.
- No more complex software installations if your computer gets stolen or crash.
- No more loss of data if you did not make a backup and your computer gets lost or crash as your cloud-based software provider takes care of backups.
- Integration is possible with other cloud-based applications that your business may need for instance point-of-sale, payroll, booking systems, advanced stock systems, etc.
Allow Your Accountant to Be Your Adviser
While all your financial recordkeeping is kept up to date daily via cloud accounting, your accountant can add value to your business, by
- Preparing a budget that you can use to measure the performance of the business against. A budget will help you to get focus in your business whether it is to grow sales, grow profit margins, to control expenses. Remember the old saying: “if you can’t measure it then you can’t manage it”. Your budget can be done in Xero giving you access to actual vs budget figures by the press of a button.
- Preparing and keeping an updated cash flow forecast. Anyone in business will know how important cash flow is. Cashflow management will automatically get you to focus on debtor management and ensure you optimize credit facilities from suppliers. Remember that “Turnover is Vanity, Profit is Sanity, but Cashflow is King”.
- Spending time on structured tax planning as this will ensure that you don’t pay unnecessary tax. Don’t just assume your accountant has done this. Make it your goal to task your accountant with this.
- Making time to consider an exit strategy from your business. This doesn’t just have to be an exit when something bad happens for example bankruptcy but ever so important is to plan an exit strategy for you to retire and being able to sell your business rather than just closing it.
Jaco Myburgh JM Accountants
Member Firm of The Core Group
C: 082 335 5752