A guide to digital transformation for accountants
Accountants need to pick up the pace of technological adoption if they want to remain globally competitive. We offer some advice on where to start.
Track money coming into your business and never miss a payment.
Accounting software can help you to track accounts receivable and anticipate problems before they happen.
You should initially set targets for the next 6 to 12 months to track your accounts payable and receivable in order to avoid shortfalls. Next step is to note seasonal variations like heating bills increasing during the winter. Do not neglect to include fixed and variable costs and be realistic about your forecasts.
Send out automated invoices promptly to customers and clients and chase overdue bills. Be clear about your payment terms. Thirty days is standard. Get to know your customer payment dates and do not ignore delays because a customer who has not made payment might be about to go out of business.
If you know your stock and what you need to reorder, you can avoid tying up your cash in too much stock. To achieve this, reconcile your stock records at the same time as your bank account, either weekly or monthly.
Whether your small business is new or expanding, you may need the occasional cash boost from a bank or lender in the form of an overdraft, credit agreement, or revised accounts receivable terms. If you keep your bank and lenders updated about unforeseen outgoings or changes in forecasts, they’ll be more likely to treat a request favourably.
If your business is growing rapidly, seek access to a line of credit from a bank or financier, such as an overdraft or short-term loan. In many cases, banks are willing to lend to a business if they can see a draft service contract or letter of intent. Once the client pays, you can pay your debt.
Get in the habit of reviewing your expenses quarterly. It is rather common for a business to outgrow a service or tool only to continue paying for it without good reason. Similarly, smaller expenses can add up over time if they are left unchecked.
Accounting management software helps you to identify potential cash flow problems in advance by updating your cash flow movement and bank transactions. You should also consider if your customers or suppliers are in financial trouble and take action if necessary. If you are concerned, talk to your accountant, investor or business mentor before a small problem escalates into an urgent one. Protecting your cash flow gives you better buying and negotiating power which has the potential for you to save money in the long term. If you know about a shortfall in advance you can also extend credit if necessary.
Our accounts receivable system report shows the amount owed to you by customers at any point in time. You can use the reports to keep track of:
Accounts receivable challenges typically include:
When your customer pays an invoice you can record this payment. This marks the invoice as paid and helps you keep track of any outstanding values. Your customer reports will be updated automatically.
Accounting software can automatically reconcile your incoming payments which means less time wasted on manually transferring data.
Track your income, expenses and more using a single solution. Easily see on one helpful dashboard, the state of your accounts receivable and what money is coming in.
Accounting software has everything you need to keep your business running smoothly. Find out more to see which solution best suits your business.
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