6 ways cloud accounting can help to transform small businesses
- Digitalised systems help companies save time for important tasks such as planning, financial forecasting and delivering value-add to customers
- Technological advances include use of AI and machine learning to help automate backend tasks and bank reconciliation
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Accounting is the backbone of all companies, both big and small. It allows the owners to keep track of their finances and business performance, and conduct analysis and financial forecasting to plan ahead.
In a small business, though, accounting can easily take a backseat in favour of seemingly more urgent tasks such as sales and product development. After all, it takes a lot of time and patience to carry out administrative tasks, such as recording expenses and preparing invoices.
A survey of 150 small to medium-sized enterprises (SMEs) in Singapore by Xero in 2017 found that small business owners spend an average of 15.5 hours a month manually importing and reconciling their bank statements. Of these, more than two-thirds cited manual bank statement reconciliation as a key challenge in managing their operations.
As a result, time-strapped business owners might be tempted to put off such tasks, or leave accountants to deal with months’ worth of records and information gaps.
Benefits of digitalised accounting system...
One way to relieve the accounting burden on small businesses is to digitise the entire process.
