Last Christmas, we received an unusual present from our kids…
…A robot vacuum cleaner, who has since been christened “Robbie”.
We keep it in our house in Wales, and it does an exceptionally good job. Each visit, before we leave, we can set Robbie to work and by the time we return, the floor is spic and span. It’s a huge time-saver, especially when we’re rushing to get back to Essex. For all I know, Robbie is still zooming around the house right now, hoovering up every last crumb and piece of dust…
But just a few months ago I had no idea such a thing existed – let alone how much easier it could make our life. Thelma and I happily lived with an old-fashioned hoover, completely oblivious to the fact that other households had long since moved on…
Too many businesses manage their accounting the same way.
Accounting technology is continually modernising; the automation available and the accounting platforms are so much more sophisticated than they were just a few years ago. Yet many businesses are still managing their accounting in the same way they did in 2013 or 2016 – oblivious that there are better, faster, more efficient ways of working.
Here’s a tiny example.
Not that long ago, we would have to manually reconcile clients’ bank accounts and their accounting records (ie. make sure there was a complete match between the transactions in their bank account and accounting software). It could be a long, painful process, which could sometimes involve reviewing hundreds of transactions if there was a discrepancy.
Nowadays, good accounting platforms can do this automatically. Because of something called “open banking,” we can import our clients’ bank transactions directly into our software, which then carries out the comparison in seconds. Even if you’re paid in a foreign currency so you’re a few pence short, the software can work out those differences so that the accounts reconcile.
These types of changes have revolutionised the way we work, not only making us so much faster and more efficient at processing basic transactions but leaving us with a lot more time for higher-value work, like figuring out how to make you more profitable.
Now, you may not be aware that these automation capabilities exist.
And perhaps – now I’ve given you an example – you’re thinking, “that sounds great, but we’ve always reconciled our accounts manually and it still works. It really isn’t worth the hassle of upgrading our systems just to save a few hours of work here and there.”
But here’s the thing. While your bookkeeper is still spending a day or more each month reconciling your accounts the old-fashioned way, your competition down the road is doing it the same way we do – automatically, in a matter of seconds. And they’re also carrying out lots of other accounting work in a much more modern way than you. It all adds up.
So while your team is bogged down carrying out tasks that machines can do in five minutes flat, your competitors’ team is spending their time much more valuably, looking into how to make your rivals grow faster.
More modern accounting gives them competitive advantage.
It’s a bit like factory owners in the early 20th century insisting they could carry on working with a manual assembly line rather than an automated one. Even as they produced their widgets, they were driven out of business by more efficient rivals.
So you need to look regularly at the way your accounting staff work to make sure they’re keeping up with the times. If they haven’t updated their systems, processes and skills in a number of years, you’re potentially in trouble.
If that’s the case, we can bring you up-to-date quickly.
When we conduct a Business Management and Financial Review, we spend a day with your business looking at the way you manage your money, identifying potential problems and suggesting solutions.
This is for you if you’d like to continue managing your finances in-house, but are concerned there may be hidden financial problems or want to make sure your team is working in the most responsible, efficient way. Click here to find out more.
And if you’d prefer us to upgrade your financial management to world-class standards, we can do so through our Outsourced Finance Department.
Our team of highly experienced, highly skilled bookkeepers and accountants will become your team, installing all our cutting-edge financial systems and processes into your business and then working with you closely to maximise your profit and help your business grow faster.
Then hit ‘reply’ to this email or call us on 01279 647 447 for a no-obligation chat about how we might be able to help you.
Warmly,
Garry
