In New Zealand, particularly in Wellington, we are very aware of the potential for damage from natural disasters. It is important to protect your business infrastructure like your office building and equipment… but what about having a plan in place to protect your financial processes and records? Businesses should think about emergency preparedness, which not only covers the immediate physical risks to infrastructure but also the long term impact that could prevent business recovery further down the line.
It is easy for businesses to concentrate entirely on their core day to day operations and completely overlook financial record keeping and the importance of creating back-ups. Business survival requires implementing a strategy that measures financial performance and assess how company goals, targets and expectations are met. Regular performance reviews will help identify key areas of the business that are underperforming and can also increase business efficiency both immediately and over a course of years.
Professional accounting and bookkeeping can help you maintain an accurate financial record of your business, allowing you to make more informed decisions that will increase your profitability. Ensuring you have backups of your data also means that if your work environment is disrupted then you can continue to operate your business off site.
There are two primary ways to maintain your records:
1. Using spreadsheets
One advantage of utilising spreadsheets is that they are easy to customise and cheap to maintain. However, they are slow and prone to human error. In bulk, pages filled with numbers can easily become overwhelming, leading to mistakes that may be enacted upon to the detriment of the business.
For instance, if multiple people have to update the same spreadsheet, there is increased risk for mistakes and work duplication. It can be difficult for financial processes to stay robust if only one person in the company is responsible for them. There is also a huge risk of loss of knowledge to the company if a skilled financial person leaves the organisation.
2. Using an automated process held in the cloud
The cloud offers businesses numerous advantages including speed, simplicity, and accessibility. There are affordable cloud systems that allow businesses of all sizes to take advantage of these benefits. Companies have access to real-time information that helps them to better manage their business. They can react to last minute decisions, manage cash flow better, cut back on year-end processing time and operate more efficiently.
Also, cloud-based businesses recover faster from disaster compared to those with data held on their own servers. For instance, you can integrate cloud accounting software with cloud point-of-sale software.
If your financial systems need an upgrade or you need some advice about getting your accounting practices up to date then contact Stephenson Thorner, Chartered Accountants Wellington. Hiring the services of professional chartered accountants in Wellington will give you access to ongoing accounting expertise not available in-house, giving you peace of mind in knowing your bookkeeping is accurate, up-to-date and secure- no matter what the future holds.