Keeping your SMB fiscally floating can be a chore. There are endless amounts of paperwork, receipts, rules and regulations – too many to count, and often too many to remember. One costly mistake can cause a whole chain of disaster for your business.
In the interest of simplification and future-proofing, we examine below 6 ways that you can automate the finances of your SMB so you can mitigate the risk of financial turmoil or audit.
A Helping Hand
If you’re trying to simplify and renovate the finances of your SMB, there’s no better place to start then by talking to an expert.
More than a deft hand with the books, your local accountant and auditor can find ways to cut time, automate and create efficiencies in your processes, allowing you to see a simpler, clearer picture.
Some quality time face-to-face with a friendly accountant in your area (like accountants in Geelong) will have you seeing the possibilities in no time.
Direct Debit
An easy to execute efficiency you can set up today is the use of direct debits to control your common payments.
If your SMB has regular outgoing payments (rent, supplies, wages), it can be very helpful to create a series of ongoing payments through your bank.
These transactions can be arranged in person, or through an online portal, saving you time and allowing you to refine the process at any point in the future.
Smart Software
With the emergence of digital technology has come the rise of smart software. You can now track, manage, order and even recruit online through the use of intuitive software.
Smart software allows you to allocate funds accordingly, as either a finite amount or as a percentage to the parts of your SMB that need it most. Depending on the software solution you choose, you may also be able to track spending and profit habits over time through automatic reporting, meaning that you can gather a greater picture of how your business is operating.
Budget Beating
Smart software has another advantage – the in-built ability to generate a budget. The advantage of software budgeting (as opposed to the ledger system) is that it can be automated to send messages when finances are either inconsistent, or when arbitrary levels/amounts are achieved. This allows you to monitor your finances effectively, without committing chunks of time to costly audits.
Sync Or Swim
Having the ability to synchronise information between programs and platforms will enable you to spend less time tracking your finances and more time generating profits.
When choosing programs from your SMB, spend time asking questions related to connectivity and automation. Chances are, if your chosen software solution is developed by the same company, you could halve the workload by sharing data between programs. This is also a great way to ensure data integrity – there’s no chance of incorrect data or cooking the books here.
Taxing Times
If you’re still using a taxation method which is heavily reliant on paper-based accountancy methods, it’s probably time you upgraded to something more modern.
Digital accounting software can automate and refine the way your taxes are tracked, ensuring you’re receiving the greatest benefits from your expenditures. Newer software allows you to photograph and store digital copies of receipts, meaning that it’s easier to track and send data to the tax office at the end of financial year. It also means you’re never caught short during a potential audit.
Financial automation is the choice of most modern corporations, and SMBs are beginning to see the benefits of instigating the same changes. By selecting smart software, integrating direct payment methods, and tracking expenses digitally, SMBs can create a more solid, progressive accounting system.
