By Paul Lodder, VP Accounting Strategy, Dext
Business owners face a whirlwind of challenges, particularly when handling finances. From streamlining operations to staying vigilant about cash flow, entrepreneurs have a lot on their plate and little time to handle it all. However, being able to manage finances effectively is one of the first steps to ensuring long-term success for any business.
Technology innovation within the accounting space has arrived and it is revolutionising the way accountants and bookkeepers work, but also those business owners who wear the accounting hat themselves, amongst others.
Embracing accounting automation
Most entrepreneurs would benefit from simplifying the process of accounting. Particularly to help manage the complexities of cash flow, expenses and compliance. This is where the power of automation comes in.
A great starting point is to explore how financial tools can seamlessly integrate into your daily business processes. This could involve beginning with automating the accounts payable process to streamline the creation of purchase orders and invoices or setting up automated systems to follow up on outstanding sales invoices, ensuring timely payments and protecting cash flow.
Automated accounting also empowers entrepreneurs to look ahead and prepare for any eventualities, including taxes. As a business grows, the volume of transactions is likely to increase. Automation scales with the business, allowing entrepreneurs to manage finances efficiently without needing to hire additional staff.
Managing cash flow in a digital world
Cash flow management is one of the most important functions that business owners need to stay on top of. When done effectively, they will have full visibility of their cash flow meaning no unexpected surprises and an early warning when a cash injection is needed.
Today’s digital ways of accounting have brought about the opportunity to aid the experience of business management, providing a clear view of the financial incomings and outgoings of the business in real-time. It can therefore encourage entrepreneurs to spend more time on other areas of the business.
As an example, companies like Northwest Construction Cooperative realised the challenges that came with collecting expenses paperwork from the whole team. By using bookkeeping software there is a noticeable speed and accuracy included in the overall process, which also gives every member of the team the ability to stay on top of expenses in a seamless manner.
Maintaining a healthy cash flow the right way
Overall, the key to maintaining a healthy cash flow is to leverage technology that helps to streamline financial processes in the most efficient way possible. With the help of real-time data insight, business owners and their accountants and bookkeepers can keep track of what comes in and out of their business without the worry that comes with possible human error.
As a business grows, the volume of transactions is likely to increase. Automation scales with the business, allowing entrepreneurs to manage finances efficiently without needing to hire additional staff.
