Inour previous blog, you read about how the clutter of spreadsheet is hampering business growth for small business owners across the country. Let’s move further into the topic and talk about how new technologies are here to make the business journey of entrepreneurs easy, fast and enjoyable.
Today, simple yet important activities such as banking have made their way to the online world.
It’s technology that has enabled me to reach out to the audience of business owners and accountants such as you and help simplify your business processes by my blog posts.
Unfortunately though, a fair section of small businesses in India are still falling behind and haven’t been able to adapt to new technology, partly because of unawareness and skepticism.
Due to this, they still manually work on their accounting and consequently suffer from a stagnant growth.
Let’s Take a Step Back
Let’s take a moment to break down an accounting cycle for a small business. More or less, it would be including the following steps:
- Journalising the transactions,
- Posting them to ledger accounts,
- Preparing trial balance,
- Preparing final financial statements and filing taxes to stay compliant.
From the first look of it, this might not seem very difficult. But when the business truly expands and there are thousands or millions of transactions in a day, the situation dramatically changes.
And if the business do not adapt to new technologies to streamline these steps, even a little mistake or inaccuracy can cause a major failure in the system.
So, What’s The Solution?
Weare glad you asked that. It means you want your business to excel and grow. Fortunately for you, the solution is simple: Your business needs an online accounting solution that fits all your small accounting needs like invoicing and tax filing to the large ones, like inventory management.
Let’s look at the top 3 reasons you should make the move to an online accounting solution-
1. You Will Save More to Earn More!
Traditional manual accounting is a tedious process requiring accountants to spend copious amounts of time mathematically checking numbers in the company’s accounting information. Simple mistakes such as transposing numbers or entering information into the incorrect column could create significant errors.
Online accounting systems allow accountants to process more information than before by creating accurate financial reports. Because of its efficiency and ease of use, online accounting systems also allow you to improve inventory control and payment collection, saving time and improving cash flow. Accountants can potentially spend less time looking for errors and more time analysing information for decision purposes.
2. Your Business Will Always be Up & Running.
The cloud is one of the most secure ways to store data. For example, using cloud software, if your laptop is stolen or gets crashed, no one can access your data since it’s only you who have a login to the online account.
In the event of a natural disaster or an on premise theft, having all your accounting data on the cloud means business productivity doesn’t need to be affected. As long as you have access to any computer or mobile device connected to the internet, you’re up and running.
In addition to this, if you invite your accounting team or investors or other decision makers to view your accounting data, you can control the level of access. This is much more secure than the old-fashioned way of emailing your files or sending out a USB stick with your data on it.
3. Your GST Compliance Complexities Will be Minimised.
Filing taxes is one of the crucial activities for any business, more so now, because of the introduction of GST. Today each and every business owner conducting in India has to register themselves under the Goods and Service Tax laws.
After which they are expected to send out invoices that contain the details prescribed by the government, upload monthly transactions to the GSTN portal, and file multiple returns every month. All these steps simply imply that it is impossible in the current day to handle all of this in manual books.
Online accounting is the right way forward. Not only it allows for GST compliant invoice generation for transaction level compliance but it also helps in generating easy to understand error reports and ultimately filing accurate tax returns.
Okay…So Now What?
Worry not readers! While you could still continue to perform the above mentioned tasks manually, doing so would be both time-consuming and costly and error prone.
Modern technology is changing the nature of accounting, across all business sizes and types. It’s time to sign up with a cloud accounting solution and enjoy a hassle-free & error-free accounting experience.