How to avoid the top three accounting pitfalls
The challenges facing Canadian business leaders have not changed. But the need for robust solutions has become critical if businesses are to compete effectively. Fortunately, such solutions are available, and new technologies have made them more powerful and more accessible than ever.
Most business leaders will likely agree that accurate, timely financial data is among their most important assets. In fact, a failure to maintain reliable, real-time bookkeeping and accounting data represents one of the biggest pitfalls for small and medium-sized businesses.
Without relevant data, business owners have no reliable way of knowing how they’re truly performing. After all, gut instinct can only get a person so far—and sooner or later, it won’t be far enough. Those who rely on instinct end up missing opportunities and making decisions that can hurt rather than grow their company. It’s vital for business leaders to have their books in order and up to date.
There’s more to the numbers than numbers
Of course, knowing the numbers is only part of the equation: making sense of them is what really counts. Unlike their predecessors, today’s business leaders have access to so much data that it’s easy to get overwhelmed. The trick is to know where to focus and how to extract meaningful insights from the avalanche of information. The inability to do so is one of the top pitfalls confronting small and medium-sized businesses today.
That deluge of data is also likely a contributing factor to the third common obstacle: actually finding the time to complete the bookkeeping. Many small business owners do their books manually and infrequently, or get their relatives to help. This makes it harder to access timely, accurate information.
The good news is that help is available. But leaders shouldn’t drag their feet to take it.
Your competitors are already in the cloud
When people refer to the cloud, they’re generally talking about all the technology assets, like servers and software, used to run key business functions. The beauty is that all those assets are located somewhere off-site. Most business leaders have already heard about the enhanced efficiency, cost savings, reliability, and security the cloud offers. What they may not have heard is that the businesses embracing cloud-based technologies are outperforming slower adapters.
Such businesses are able to access their financial data faster, and from more places, than their less technologically inclined competitors, with a corresponding increase in the speed and quality of their decision-making. In fact, 58 percent of Canadian executives expect cloud-based technologies, like data analytics and business intelligence, to have a significant impact on their business this year1.
Clearly, companies need to be in the cloud. When assessing cloud-based platforms, owners should look for solutions that will scale, offer options tailored to their needs, and deliver predictably and consistently. Solutions such as Univation, are designed to grow with your business, can be customized to meet specific requirements, and will do so at a fixed, affordable monthly rate.
Many cloud-based solutions will handle bookkeeping efficiently. But in today’s hyper-competitive environment, that’s not enough. The real value of a cloud solution is to give business owners the tools to make better decisions—and in this space, that’s a clear winner.
Now’s the time to take advantage of cloud-based solutions and overcome those all-too-familiar business pitfalls more effectively than ever.
1. Deloitte Global Perspectives for Private Companies: Plans, priorities, and expectations.