When was the last time you –
Waited until you were at home before making a call using your landline phone?
Used the Yellow Pages to look up a company address?
Reached for a paper dictionary to help spell check your emails?
Probably not since the 1990s, if you think about it.
So why would you let your financials still be manually updated? Or stuck in a rigid end of year/quarter/ monthly reporting cycle?
Even in a fast changing environment where businesses have shifted their entire operations online (i.e. an online store vs brick and mortar), there are still a large number businesses that rely on traditional ways of bookkeeping.
In the traditional approach, very often the entire responsibility of bookkeeping may lie with a couple of employees or the business owner themselves. Tasks like writing up accounts payable, maintaining inventory, taking care of payroll and tax reporting are managed by a few people – who may lack the expertise necessary to meet the never ending demands of accurate bookkeeping.
Very often the entries are made at random and may be reviewed just once or twice a year, leaving plenty of scope for major errors to creep in and result in off target business decisions made from out of date information.
What does a traditional bookkeeper and a dinosaur have in common? They’re both extinct.
Traditional bookkeeping is now redundant thanks to technology automation and ‘cloud based’ services. You can now automate the processing of accounts payable/receivable, payroll and tax reporting and your figures updated on a daily basis. Not fortnightly, not every three months, not yearly with your tax accounting.
Most businesses that resist a change to newer technologies for their accounting and bookkeeping systems justify it to themselves in different ways. Some argue that they are happy with the manual way they’ve always managed ‘just fine’. But is ‘just fine’ good enough?
Others believe that there is a significant expense in moving to cloud based services. The fact is that virtual CFO service providers working in the cloud benefit businesses more than they expect and at a fraction of the cost.
We recently met a CEO of a NFP whose paper-based leave and employee change request forms were being entered into 3 completely un-integrated systems before being filed away in paper files.
Imagine the time wasted in this process (say 15 minutes each one) multiplied by how many request forms they were processing each week (approx. 50)…at an average bookkeeper’s rate that’s around $25,000 per year in time wasted on this one task!
Savvy CFO’s are harnessing the power of cloud based technology to reduce salary costs and provide greater insight and information for CEO’s/business owners.
Wouldn’t you like to see your financials in real time, reduce the ‘human error’ and make better business decisions?
Our Virtual CFO services will help you get the most out of moving to the cloud and improve your systems now. Making the switch to cloud based services will enable your business to survive and thrive in the future.
At Lucent Advisory, we spend our days working with SME businesses and not for profit organisations across different sectors make the switch to cloud based services, which in turn helps them streamline their bookkeeping and become more efficient.
Book a no obligation call with our Managing Director, Rachael Turner, and she’ll provide you with 3 more reasons you should be operating with cloud based bookkeeping and an Virtual CFO service at your fingertips.