Updated: Dec 12, 2019
Accounting technologies have started to sprout elsewhere—all up for grabs for every business. A lot of smart developers have started designing and developing accounting apps or software that companies can take advantage of. In the past, these types of accounting technology were only reserved for big and large businesses. Today, even small and medium enterprises (SME) can tap these accounting resources and use their many potentials to the fullest.
For this reason, financial recording and monitoring of your business are more straightforward and more streamlined nowadays. That said, here’s how using an accounting app can transform your small-scale business.
1. Faster Payment
A robust, streamlined payment system can speed up the payment process. The use of an accounting app will ensure your bills are paid faster and on time. Here’s how it helps the payment of your business:
Clients in retail: The use of a point-of-sale app turns your smartphone or tablet into a mobile cash register. This enables your staff to go anywhere and serve customers. What a great yet inexpensive way to start selling!
Clients who send invoices: Invoices often lead to late payments. However, the use of instant payment options, such as GoCardless, Stripe, credit card, or online payment, helps settle the accounts quicker and better.
2. Automated Transaction Records
Many small-scale companies face a lot of challenges when it comes to keeping records of financial transactions. It’s quite a hassle for your business to compile physical receipts and invoices. The same is true for manually recording and maintaining financial data and information.
That said, what better way to proceed than to automate the whole accounting process? A smart accounting technology enables you to record paper receipts through photographs and to save these for record purposes. Such an application typically reads the picture, transcribes the purchase data, and keeps it in the accounting software.
3. Easy and Accurate Time Recording
Poor time-keeping for business leads to all sorts of compliance issues. This can potentially compromise your finances and cost you unwanted penalties. For instance, some companies overpay hourly workers while others over-service clients. This is because they do not have a stable time-recording system that can ensure accuracy and easy reporting.
That said, the use of accounting software is beneficial for your business. A digital timesheet enables your employees to clock in and out using their phones with GPS. The time records can be coded to various tasks, allowing you to set the time required for specific jobs and see if employees do comply. Also, there’s no need to have an infrastructure to buy or install this app or software.
4. Control of Inventory
Inventory refers to the array of finished goods or goods used in the production held by a company. Doing inventory entails a massive cost, that’s why only a few small businesses manage it well. The chances are that they lack enough human resources and structured processes to stay on top of the inventory.
That said, the use of software better assists both the inventory process and the staff working on it. With the right accounting technology, you will be able to add new items to inventory as stock comes into the business and subtract them as they’re sold.
There’s a lot of technologies that your small business can take advantage of to streamline your accounting process and improve business profitability. Accounting apps make faster payments and automate the accounting process, leading to smooth and accurate time recording, as well as regulated inventory.
Given all the aforementioned benefits, it’s rather practical for your small-scale business to use an accounting app that can significantly impact and transform your business.
If you are looking for e-commerce accounting software in Australia, get in touch with us to see how we can help.