Statistics do not lie, and one of the things they are telling us is that using the correct accounting methods will have a massive impact on the financial success of your company by saving time and improving cashflow.
Although an accounts department, or your outsourced accountant, can seem rather dry and dull, they are currently being revolutionised by the tech world of AI and the cloud accounting revolution.
Whichever option you choose it is time to look closely at how your accounting methods are impacting on your business health.
Although there is plenty of software on the market, including free programs, firms are increasingly looking to outsourced accounting services provided by a range of companies at sites such as https://www.mushroombiz.co.uk/homepage/services/accounting/.
By establishing a strong relationship with your accountant, you will save time with tax and annual returns, as well as improve the accountancy procedures across your company. Checking out the future trends in accountancy will also mean you are able to think ahead and get the most out of this relationship.
Most small businesses feel they are not sufficiently knowledgeable about accounting although an almost equal number claim to use accounting software. This seems counter-intuitive, and frankly, rather worrying. Outsourcing this major task seems a desirable alternative for most SMEs. This is particularly the case when we note the impact of cloud accounting. This is moving the accountancy function away from the desktop to the cloud, saving money and storage space on your computer network.
It is predicted that by 2020 78% of small businesses will be relying on cloud technology. If you are currently not considering this option, it may be the time to do so.
Cashflow and profitability are inevitably hit by kinks in accounts payable (AP). Automated software can help with this ensuring these outgoings are tracked and credit is not increased to an unsustainable level. An AP system will prove to be a cost cutter and reduce time spent on the issue.
As mentioned above, AI also plays a huge part in the accounting process, helping with data input and linking accounts receivable to those payable. Accountants are increasingly using this facility to improve efficiency. Recent research shows business owners see AI providing increases in competitive performance and productivity.
The statistics speak for themselves!