This is a guest post from Kristy Sheppard, Public Relations & Corporate Affairs manager at MYOB 
.
It may not be the most enthralling of topics or tasks for a business owner but it’s an important one… accounting.
Successful operators ensure they’re well across the business financials, so they know what money is coming in and going out, what return they’re achieving on particular products and services, who owes them money and for how long, so they can spot seasonal trends and so on. Knowledge is power when it comes to making important business decisions.
They also strive to ensure their business processes are streamlined for efficiency, to reduce their admin and be as productive as possible – it’s all about maximising the return on investment of their time.
And, of course, they make sure they’re compliant with taxation and other business legislation.
Accounting software provides reporting and insights that can help you with all these areas and more. It can be the backbone of your business success, so you need to make your choice carefully. There are many options, both for the desktop and in the cloud, but given the pace of movement towards the latter let’s delve further into that.
Why are businesses increasingly shifting to online hardware and software solutions (that is, ‘the cloud’)? The time, cost and productivity gains are among the big benefits. Increased business productivity may mean you have more time and resources to concentrate on growth building activities, which could help make you more competitive.
In fact, a recent MYOB Business Monitor survey found Australian SMEs using the cloud were 106% more likely to have reported revenue increases last financial year than those who weren’t. That speaks volumes.
Here are MYOB’s tips for choosing a cloud accounting solution that’s right for you:
1. Research trustworthy providers
Look for cloud accounting providers that offer credibility, technology expertise and reputation. Scour their website and other online channels as well as independent information sources such as blogs and industry publications. Also consider seeking advice from IT consultants, business advisors and other business owners who understand the market and are up on the latest offerings – but make sure you check whether they receive any kickbacks for recommending particular solutions over others.
Another key consideration is whether the provider offers e-learning and support outside 9-5 – via phone, email, live chat, community forum and other social media. Make sure help is available when you need it.
2. Review different models
Cloud accounting solutions can take many forms, which means they could take some time for you to get comfortable with them. Research how much training is involved with getting set up and make sure you have the time to allocate.
Online-only: Some cloud solutions only work when you’re connected to the internet. This can be ideal if you’re looking for a relatively simple solution and aren’t bothered by not being able to do your books when you’re in-flight, in an internet black spot, when the internet goes down and so on.
Hybrid: Others enable you to access and work on your data in offline mode as well as online – offering the grunt of the desktop with the flexibility of the cloud. If you prefer this dual access ‘anywhere, anytime’ then a cloud-enabled accounting solution may suit you. Just make sure it offers a seamless transition between online and offline mode.
3. Secure bank transactions are essential
A reputable accounting software provider should empower you to securely and directly link your business bank transactions to your online accounting solution. This can save you plenty of time in manually entering all your business bank transactions.
Some companies use a risky practice called ‘screen scraping’. Here, you provide your banking login and password to the accounting provider, who passes them on to a third party to ‘screen scrape’ your bank transactions and feed that data back through the accounting solution. This may leave business owners at risk of breaching bank terms and conditions and increase the risk of mistakes and potential fraud.
4. Read the fine print
Beauty only goes so far when you’re relying on accounting software to run your business. Look at the products on offer objectively and think ‘does the software meet my unique needs in its design, ease-of-use, workflow and features?’ Will it make you as productive as you need to be?
It may be an all-in-one cloud solution where all the features you need are integrated into the product. Or, it may require ‘add-on’ features. If the latter, be sure to add the cost of these into your equation as well as the extra time it may take to get everything working well for everyone who will be using it. That’s a big benefit of cloud accounting – working with your business data online in real-time with your team and advisors.
Further on costs, check for limitations such as the maximum number of employees the payroll feature will service or the maximum number of different transactions you can make through the software (eg. sales invoices). Be careful to research for any ‘hidden’ costs on upping these maximums, so you don’t get caught unawares after you’ve subscribed to the accounting solution.
Also enquire about the providers’ service level agreements (SLAs), especially in the event of an unexpected or planned outage for maintenance reasons. For example, if a half-day outage will be detrimental to your business, then discuss what measures are in place as well as any potential outcomes with the provider upfront.
Remember: using online accounting software has the potential to give you deeper insights into your business so you can make more informed decisions and have more time to focus on building your business and/or enjoying life outside work. Good luck with your research!
Are you using cloud based accounting software? How has it benefited your business? Tell us in the comments section below.