What does an interstate move mean for your business bookkeeping?
Guest post by Notch Above Bookkeeping
With the influx of new residents to Queensland, many are relocating to the Sunshine State for the lifestyle benefits. As such, entrepreneurs are also bringing their businesses with them.
In a digital and flexible working age, we outline some key points to consider when facing the opportunity to reinvent how you run the bookkeeping, whether that be from a formal workplace or a home office getaway.
Not putting too strong a point on it, the COVID-19 crisis was an undisputed economic and business disaster.
What happened to businesses that rallied to set up their workforces safely offsite?
And when bookkeepers were part of that headcount, how effective did the bookkeeping function remain?
Or how ineffective did bookkeeping become?
Conventionally in small and medium businesses, bookkeeping software is typically installed on a dedicated computer drive, usually only accessible by a licensed user through a desktop application on a designated machine.
So how did COVID disconnection affect businesses?
For a start, we no longer leave paper receipts or invoices on our bookkeeper’s desk to process. With the uncertainty of lockdowns and workplace health and safety regulations, who knew when anyone would be able to get back into the office to process the paperwork?
Similarly, with reliance on paper trails, some of us could no longer chase payments accurately, because who knew with any certainty who had paid, or not.
Fortunately, business technology was actively evolving before COVID-19 happened to a point that cloud software had solutions for many of these accessibility issues. Bookkeeping software has, in most instances, also been operating in the cloud for some time, and what a relief for those cloud users during 2020’s unprecedented times.
Playing catch up
The global spread of COVID-19 contributed to the panicked surge of businesses moving over to cloud-based software. It’s an industry that had been seeing robust growth anyway, but the need to change in order to continue functioning finally pushed many stalwart business owners out of indecision.
So what are the differences between cloud and traditional bookkeeping software? As we see it, there are three:
- Business scalability and growth, and
Accessing bookkeeping from anywhere (to remove lockdown as hopefully we are over that)
Cloud-based software essentially means that your bookkeeping data is stored on a remote server and accessed through a highly secure online interface from anywhere with an internet connection. Unlike traditional bookkeeping software, users are not restricted to a single machine to access what they need, so access doesn’t stop when the office closes.
It means that financial information is no longer stored locally and, instead, provides multiple authorised users with 24-7 access to real-time data. Managers, accountants, clients and bookkeepers can all be in different locations and time zones and yet continue to monitor and control a business’ financial position.
Growing bookkeeping with the business
Growing a business can be an expensive exercise for business owners who rely on traditional accounting software. Hiring an additional bookkeeper? Better purchase additional computer storage, upgrade the local server, and increase bandwidth access to it as well. If you don’t, things can slow down and suddenly two bookkeepers are working at the rate of one.
The impact of COVID-19 on bookkeeping practices forcefully demonstrated the sheer versatile scalability of the cloud. It’s up to each software provider to manage server space, speed and performance which, usually for the cost of a monthly subscription, is much more financially flexible.
And that brings us to cost
Fewer local servers mean less office area is required. That’s certainly one way to reduce the expenses that come with a larger property footprint.
Most cloud bookkeeping software providers offer access on the basis of a monthly or annual subscription fee, usually including all the server storage you could need.
The software is online and updates itself at the source. No more paying for IT Support to come in and install updates on everyone’s individual machines.
During the uncertainty of 2020, businesses either flourished or were incapacitated; whether that’s long or short term, who knows? Monthly subscriptions offer flexibility to businesses that need to respond by furloughing employees and then reinstating them on a rapid turnaround.
Notch Above Bookkeeping can help your business in a post COVID-19 world. We can review your existing bookkeeping system and then help you install updated software, configure your security settings, import your business data as well as setup your invoicing, payroll and taxation requirements so that your team can access financial data and operate remotely.