With getsix® financial reporting and accounting, you spend less time inputting data and more time acting on valuable insights
The benefits of getsix® ‘Real-Time Accounting’
Businesses are under ever increasing pressure to be leaner and more competitive within their marketplace, the ability to know how you are doing is more important than ever. Consequently, ‘Real-Time Accounting’ comes into play to a larger extent. What was previously ‘a finger in the air’ guesstimate of your finances, profit and loss and stock values, now can be a vital part of your day-to-day business workflow.
getsix® understands that businesses need to be able to (on an almost daily basis), keep track of every single transaction in and out of their business, and where possible identify areas which are doing well and those that require some changes. This will ensure your business can make the decisions that are required, and when they are needed. And to do this, businesses require up-to-date accurate financial information.
In today’s business world, time is money. How often does your business use the management accounts information to help you manage your business on a day-to-day basis? Could it be that you’re not getting the information quick enough to be of use? Or is the data not as precise as you require it to be? This is where getsix® ‘Real-Time Accounting’ can give you the edge you need.
getsix® ‘Real-Time Accounting’ gives you the information you require, as and when you need it, as soon as a transaction is complete. Whether it is a sale or a purchase, you have access to your profit and loss, balance sheet, sales reports and more. With this detail, you can be more pro-active rather than reactive to your business requirements.
According to research by the Aberdeen Group, leading companies using ‘Real-Time Accounting’ observed 24% higher accuracy in terms of actual to budgeted revenue, compared to slower counterparts, and were able to close their books 24 times faster as well. Below are other benefits of ‘Real-Time Financial Reporting’:
The Removal of Batch Processes:
‘Real-Time Accounting’ ensures that information updates are performed at one point in time. For example – when an approved invoice is posted, the vendor account requires to be credited, and the expense and tax accounts would be debited in the general ledger. At the same time, inventory, activity costing or project commitment balances have to be updated. Contrasting traditional accounting where these transactions happen in batches, in ‘Real-Time Accounting’ everything is recorded at the same time. This minimises errors and makes sure that updated information is available to all stakeholders.
The Synchronisation of Different Books:
Most businesses allocate some or all of their accounting functions. This means that a lot of replication of processes can happen. For example – a store would copy the day’s sales data to a regional office, or headquarters would copy fee and price allocations to stores. ‘Real-Time Accounting’ can reduce or eliminate the need for duplicating data. By using getsix® for your ‘Real-Time Accounting’, data can be posted on many databases instantaneously. For example – if the subsidiary and headquarters are running a similar accounting system on the same database while being connected on a network, the transaction can be recorded in both books at once.
Creates Information Hubs:
‘Real-Time Accounting’ will enable the formation of information hubs which can be retrieved by many at the same time. The information can be presented in many formats as per the requirements of the viewer.
With ‘Real-Time Financial Reporting’, books will be updated, not at the close, but on a more periodic basis, that is suited to the requirement of your business. Timely financial information will permit the management to maintain a responsive strategy while operating in a dynamic business environment.
‘Real-Time Financial Reporting’ will provide visibility to operational information and will enable your business to re-prioritise tasks and resources to achieve mission-critical objectives. For example – within this Aberdeen Group survey mentioned above, 72% of respondents said that ‘Real-Time Reporting’ is important for compliance, accuracy and organisational productivity.
How outsourcing to getsix® can facilitate ‘Real-Time Financial Reporting’:
The main challenge of ‘Real-Time Financial Reporting’ is the burden it places on your existing finance and accounting team/s. By outsourcing the tasks of Bookkeeping, Accounts Receivable Management, Accounts Payable Management, Financial Reporting and Analysis, Payroll Processing and others to getsix®, you will have access to our specialists and of course our latest technology that will enable real-time financial reporting and updating of your books. Additionally, getsix® outsourcing services offer 24/7 solutions which can enable real-time financial reporting of your offices across geographies, within the stipulated timeframe.
getsix® realise as more and more organisations start using ‘Real-Time Accounting’, there could be some dramatic implications in the future: paper-based reporting could become obsolete; managers can keep an eye on and respond to business problems and opportunities, at anytime, from anywhere; and companies could be able to increase their profits by responding to problems even before they occur.
Profit and Loss, along with the state-of-play
The Income Statement or Profit and Loss are the main areas where your business can see the benefits of ‘Real-Time Accounting’. At the click of a button (day or night), you will be able to view how your business is doing and what your overall profitability looks like. You will be able to compare it to previous periods, check different channels and compare how each are doing against one another. From that, you can make the correct choices that will drive your business in the right direction.
There will be no waiting for your accounts to be compiled at month end as ‘Real-Time Accounting’ has it all there, 24 hours a day, just waiting to be accessed when required. Whether you require information for a new investor or you need to see your Bank Manager the next day, you will always have exact up-to-date information to hand, and when required.
Your business will not only gain advantages on the Income Statement, but also on your Balance Sheet. You can have accurate stock valuations with no requirement to deal with open and closing stock journals. For example – each time you buy new goods and the stock is received, your inventory and stock levels are automatically accounted for. This means you will know how much you have left outstanding on goods received but not invoiced, or how much you have paid out but have yet to receive the goods for. And this is what you can see on your Balance Sheet at a glance.
According to Panalitix, an well-renowned accountant training company, around 9 out of 10 business owners (93%) said they really want a “RealTime Accountant”, meaning they prefer working closely with an accounting professional who offers proactive, forward-looking advice based on “real time” financial information, instead of analysing and providing reactive guidance based on old data, this is where getsix® is different from the rest.
getsix® ‘Real-Time Accounting’ will separate you from the pack by taking advantage of our Cloud-based accounting. Your financial data will always be up-to-date, as we collaborate with our clients in the Cloud, enabling you to trust getsix® who can identify issues before they arise.
Key Benefits of ‘Real-Time Accounting’
- Far better cash flow management;
- Faster adjustment of pricing, hiring, stocking, and margin mistakes, saving money and increasing profits quicker;
- Identifying any tax liabilities faster, as well as the ability to reduce or eliminate penalties from paying late or underestimating tax due;
- The ability to see whether your business are making a profit, or a loss;
- The potential to catch fraud or identify theft much quicker if you become a victim;
- Lower accounting costs, when possible errors snowballing over time;
- Peace of mind;
- The capability to be more proactive in your business management, capitalising on opportunities that show themselves in the numbers.
You should really consider moving to ‘Real-Time Accounting’ if you haven’t already. For example, if your books are done annually, moving to quarterly or monthly services will begin to provide the advantages listed above.