Real-time accounting capitalises on the technological advancement of cloud computing to allow users to access their financial performance online wherever they may be. As long as you have an internet connection, you and your team (providing you give them access) can access the real time information on the train, on site with a client, at the office or from home.
There are five key benefits of embracing cloud-based accounting technology. This includes:
- Accessibility – Business owners, accountants and bookkeepers can access key data at any time and on any device.
- Affordability – Integrated software solutions are now more affordable than ever before, making seamless accounting software packages available to businesses of every size.
- Flexibility – Accountants and business owners can customise their software to meet their specific needs.
- Collaboration – Colleagues, clients and accountants can collaborate in real-time.
- Accuracy – The likelihood of errors being made is reduced by the audit trail that is created with every change.
Those are the general benefits of adopting a real-time accounting solution, but how can this type of software actually improve your accounting systems and enhance your ability to run your business?
Real-time profit and loss accounts
Your profit and loss account is one financial statement that really benefits from being in real-time. This allows you to see where you stand on a day-to-day basis. You can then compare your profitability to other periods and your financial forecast and see how it fluctuates, and why.
If you’re looking for finance from investors or a loan from the bank, being able to access real-time profit and loss accounts will also help you paint an accurate picture of your business’s financial health.
Keep an eye on cash-flow
Cash-flow ebbs and flows on a daily basis, so being able to access cash-flow information wherever you are can prevent a nasty surprise creeping on you. Having real-time visibility of the cash in your business allows you to anticipate and resolve any cash shortages before they become a problem.
Avoid the end of year rush
Rather than having to gather all your accounting information together at the end of the year, everything will be ready and waiting to go. You’ll also have a good idea how much your tax bill will be as all the calculations take place as you go.
Be ready for real-time submissions
With the new real-time accounting submissions due to be in place by 2020, you will be ready and waiting to make submissions whenever they’re required, helping you avoid any upheaval.
How can we help?
Prosper provides a comprehensive approach to accountancy, tax & business growth services for start-ups, SMEs and growing companies across the UK. We are your bookkeeper, accountant and finance director all rolled into one. Check out prosper.accountant to learn more about how we can help your business.