Less of bookkeeping and more of business building is the key to the development of a company that keys in its tax side to an online, automated partner
Less of bookkeeping and more of business building is the key to the development of a company that keys in its tax side to an online, automated partner, says Nikki Summers, Regional Director of Sage in East Africa.
Whether one is a one-man-show or micro business operator, it is possible to streamline all paperwork so that numbers will count through an automated means even as focus moves to the essential stuff.
According to Summers, business builders ought to question themselves on three possible areas for not investing in accounting software, namely: Tracking cash flow, improving income and keeping a hold on expenses. These are tasks that inevitably lead into a daily workload in the office, ranging from checking bank statements regularly, using paper records and other means to fast-track the flow of capital in companies. However, these can be eclipsed by other operational tasks as they are time-consuming, and thus the need to go for the right accounting package. The latter, according to the Regional Director, is possible to access in small screens like mobile phones or just at the click of the mouse.
The second question that many entrepreneurs need to ask themselves, accordingly, is how much time they are spending on filing finances and reviewing printed sales’ patterns. The solution lies at using an automated accounting solution that instantly compensates for hours wasted in digging up invoices from shelves and comparing disparate dates in paper bills.
“An accounting package gives you one place to keep your accounting records-and they’ll be accurate and up to date.” Summers concludes on that head.
Thirdly, there is a pattern whereby a company’s accountant gets to the extent of proffering a view on the need to avail an automated accounting tool. The reason for this maybe twofold: either there is a bulk of manual paperwork that cripples the accountant and thereby raises hourly cost or there is genuine concern by the accountant that the company needs to move with the times to produce accurate accounting. With an automated tool, the accountant and the employer will work in tandem and read from the same script from across the globe, thus dispensing with physical meetings.
The Regional Director for Sage EA also adds a fourth question that a businessman needs to answer to know the need for moving to automated accounting:
“Are you struggling to stay on top of issuing and paying invoices?”
This can be manifest in loads of time, per timesheet, each month, hand-in-hand with a lag in coming up with invoices and tracking purchases from customers and payments to suppliers. The solution lies in accurate repetitiveness. This implies creating an original recurring invoice that each returning customer can use at the end of every month. This way it becomes possible to keep a track on both creditors and debtors.
Finally, Sage presents an important question that entrepreneurs need to ask themselves in order to progress in accounting: finding reconciliations painful. The epitome of this is where math problems, such as, finances fail to provide an accurate solution primarily due to human error. To overcome such poor reconciliations, there is a need for a steady accounting solution, such as linking an online banking account to the present financial tool one is using. This makes things easy in that every entry henceforth will be updated automatically.
Summers concludes on her brief with the words that “business builders and entrepreneurs don’t go into business because they want to wrestle with red-tape and manage admin.” She highlights that novel tech including such A.I. as Sage Pegg, the world’s first accounting bot, will eventually improve life by making interactions with accounting software seem natural. As earlier reports have intimated, the vision of the company still remains making manual back-office functions invisible by virtue of complete automation by the year 2020.