How a business can leverage technology for better financial management

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Outline

Technology can help improve financial management

  • Technology can replace paper based processes.
     
  • Financial transactions can be managed with cloud based software.

  • Technology can improve business operations

We know thousands of business owners are searching online for ways to use technology, cloud based services or apps as well as financial accounting software like Xero to try & improve their operational capacity. At Fitzpatrick & Robinson we made the decision many years ago to be a pioneer as an accounting firm and embrace the use of software, apps and cloud computing technology to help make it easier to not only manage our own business, but every one of our clients’ operations as well.

We have helped thousands of business owners around Gregory Hills, Campbelltown, Narellan to transition from very paper centric operations that relied on printed invoices, orders or receipts to track all their financial records to becoming paperless and using technology to keep track of their business.

Using a laptop, tablet or smartphone you can basically manage your business from anywhere in the world using a combination of technolgy devices and software applications like Xero. 

Technology can give you quick access to financial information

The decisions you make in your business are only as good as the data you use to make them. The more accurate and up to date your data is, the better your decisions will be. Leveraging technology can provide you with accurate real-time data to make more informed decisions in your business.

Processes and systems drive your business, so it’s important to ask yourself if all of yours are clearly documented and up to date? Some processes may be followed simply because they always have been or seem like common sense. Although, other processes may have evolved over time, your documentation might not necessarily reflect this. Using technology to streamline your processes and systems can increases efficiencies that can help save time, money, and reduce stress. You’ll also prepare your business for the future, making it more sustainable, scalable (and saleable if you are thinking about that)

In our case we typically help local businesses to use Xero Accounting Software which is a cloud based solution that can provide fast access 24/7 to important financial information. Best of all you can do this from your mobile phone in the middle of the night if you want, you don’t have to wait to speak to an accountant or until all the paperwork is up to date, everything is processed in real time by Xero.

Leveraging your technology can help you to achieve some of these tasks:

    • Make your data accessible from the cloud, allowing you to view real-time data and make decisions on the go.
    • Reduce human error and increase productivity by automating repetitive tasks and workflows.
    • Track your expenses and load them directly to your accounting software simply by taking a photo.
    • Minimise double handling and increase efficiency by integrating your apps.
    • Collaborate with your team regardless of where they are.
    • Save the time and money needed to travel by using online meetings.
    • Induct new team members seamlessly with clearly documented processes.
    • Monitor your inventory in real-time, reducing inventory days and freeing up cash.
    • Store customer preferences to personalise the customer experience, increasing customer satisfaction, and retention.
    • Make your business becomes scalable, with systems in place to allow the business to grow without the wheels falling off.
     

    Using technology to its maximum advantage will help to improve your business. However, implementing these changes can often be overwhelming, that is where our accounting firm can help where you can use one of our Xero Accountants to transition your financial transactions to cloud based accounting software or speak to one of our business advisory experts to assess how your business may be able to grow while leveraging more technology.

    Other types of technology solutions a business can use

    Technology can play a transformative role in enhancing financial management and operations for businesses in Sydney. Leveraging the right tools and solutions can streamline processes, improve efficiency, and provide valuable insights that can be used to make smart decisions about managing cashflow, expanding or the way products or services are sold. Here are some ways technology can be used to achieve these goals:

     

    Cloud-Based Solutions:

    Cloud-based technology offers the advantage of remote access to financial data and applications. It enables teams to collaborate seamlessly, regardless of their physical location. Utilising cloud-based platforms for accounting, invoicing, and financial planning ensures data security, automatic backups, and reduces the need for physical infrastructure. There are lots of cloud-based applications or services available these days that can do everything from processing payments to creating a new design for a social media post. Most are subscription based which also means they are a tax deduction as a cost of running your business.

     

     

    Online Payment Solutions:
    Integrating online payment gateways like PayPal, Stripe, or Square simplifies payment processing for customers and enhances cash flow. Offering various payment options boosts customer convenience and accelerates revenue collection via your website, retail shop or commercial location. This can then be reported in accounting software like Xero so that all your financial information is up to date every day.

     

     

    Expense Management Tools:
    Expense management tools like Expensify or Zoho Expense can streamline the process of tracking and approving employee expenses. Mobile apps allow employees to upload receipts and generate expense reports, reducing administrative burdens and ensuring compliance. Although using lots of separate applications can be cumbersome and one of the big benefits of using a cloud based accounting software tool like Xero is that it has modules such as Xero Expenses integration that can give you added functionality within a single eco system so it is easy to use, familiar to everyone and avoids needing to learn multiple systems.

     

     

    Financial Analytics and Reporting:
    Business intelligence and analytics tools, like Tableau or Power BI, can be utilised to extract valuable insights from financial data. Customisable dashboards and reports help businesses analyse performance metrics, identify trends, and make data-driven decisions. Depending on the depth of the analysis you may or may not need powerful tools like this, in some cases accounting software will provide summaries of important information with a few button clicks.

     

     

    Automated Invoicing and Receipts:
    Automating invoicing and receipts with tools like Wave or FreshBooks saves time and minimises errors. Using financial software like Xero can let you set up recurring invoices and receive payments electronically with people having the choice to pay via credit card, direct debit, Stripe and other methods which can improve cash flow management significantly. Most online tools will also send reminders to people about their outstanding payments so this doesn’t have to be done manually either.

     

     

    Inventory Management Systems:
    For businesses dealing with inventory, implementing inventory management software (e.g., TradeGecko or DEAR Inventory) can optimise stock levels, track product movement, and improve supply chain efficiency. Xero can provide inventory functionality with a plethora of existing systems 

     

    Payroll Software:
    Payroll processing can be simplified with the help of dedicated payroll software such as Gusto or ADP. These tools automate salary calculations, tax deductions, and reporting, ensuring compliance with payroll regulations. Once again, Xero can help you manage this within their platform and/or connecting to lots of popular payroll services.

     

    Electronic Document Management:
    Using electronic document management systems (DMS) like Google Drive or Microsoft SharePoint reduces paperwork and enables secure storage, retrieval, and sharing of financial documents. Although if you go a step further, products like HubDoc and others can help you convert paper items into electronic files for easy recognition, storage and management.

     

    Cybersecurity Measures:
    As technology usage increases, businesses must prioritise cybersecurity. Employing firewalls, encryption, and regular security updates protects sensitive financial data from potential cyber threats.

     

    Customer Relationship Management (CRM) Systems:
    Integrating a CRM system like Salesforce or HubSpot enables businesses to manage customer interactions, sales processes, and marketing efforts more efficiently. This leads to improved customer retention and revenue generation by being able to easily communicate to people whether they are new or existing customers.

     

    Tax Management Software:
    Tax management software, such as Taxify or Avalara, can help businesses stay compliant with tax regulations, automate tax calculations, and manage filing requirements effectively. Although we are biased, but our accounting firm can help you stay on top of your tax obligations and help with BAS payment processing, annual tax return submissions using either our bookkeepers, tax accountants or our CPA. We see a lot of business users try and use tax management software who don’t have a deep understanding of ATO tax rulings and therefore rely on the black and white interpretation of the software. A local accountant can navigate the grey areas to minimise your tax payments.

     

    By adopting the right technology solutions, businesses in Sydney can streamline financial processes, improve accuracy, and gain deeper insights into their financial performance. Embracing technology not only enhances operational efficiency but also provides a competitive edge in the rapidly evolving business landscape.

    One of our business advisors, CPA or accountants can talk to you about the options available, how they can be implemented & the benefits it could deliver to your specific business & situation.

    Rick & Bryn
    Rick & Bryn

    Experienced accountants who love helping other business owners in Sydney to maximise profits, improve cash flow & grow their business.

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    At Fitzpatrick and Robinson our purpose and reason for being is to help business owners make more money, pay less tax while growing in a sustainable & methodical way. We have a team of bookkeepers, accountants, tax accountants for business, a CPA, Xero accountant specialists while also providing business advisory services.

    Want an accountant that can answer all your common questions like where or how to code an expense through to setting up a self managed super fund or anything in between.