Implementing an accountancy system can bring your company many benefits, both in the short and long term. They include the following:
Organised system: Records, particularly financial ones, are the base for future growth. These must be organised and a system must be created that will allow for easy management and access to information at all points in the organisation’s life cycle.
Information management: It is important to have information quickly and readily available. Firstly, for management decision making, it is crucial to have relevant and up-to-date information. Legally, you are required to have your accounts and books for the past six years to hand. Finally, financial planning needs like loans and mortgages will require your complete business background and previous performance information.
Penalty prevention: To avoid unnecessary penalties due to the reporting of inaccurate or incomplete information for taxation or VAT purposes, you will need to have sound systems in place.
Consistent accounts management: The transition between employees is smoother with a standardised system, since there is less scope for subjectivity. Further, your financial position is clearly visible to you, and this will allow for consistent management.
Savings: When your accounts are computerised and organised, the amount of time spent managing them will be reduced. This will result in savings through lower staff and accounting costs.
Fraud tracking: It is much easier to spot attempted embezzlement or fraud with updated and systematic electronic record keeping.
Future proofing: Once you automate your business with accountancy software, you are prepared to harness any future benefits that may arise by incremental or advanced technology adoption. Many third-party software packages plug-in to existing accounting systems and help reduce cumbersome manual tasks such automatic electronic filing of taxes or payroll submissions.
