Accounting data and business decisions

Many of us have taken the step from manual to digital accounting systems. But are you making the most of features provided?

Without a doubt, accounts software offers a wealth of reports many of which will likely be of limited use to businesses, however, many will be of use.

accounting-data-business-decisions

There is a temptation to stick with the basics; am I making a profit (the profit and loss statement) and am I solvent (a balance sheet). Job done…

Coronavirus has extended these basic needs to include cashflow reports; when are we going to run out of cash?

What else is available?

Most software will allow you to create a budget, plug these forecasts into the software and produce reports that compare what has actually happened with what you expected to happen. In this way you can see when unexpected changes in your finances occur and take steps to minimise any downside risks.

Another useful feature is to fully utilise reports that flag up when your customers have exceeded their agreed payment terms. This information can be used to generate statements and copy invoices to chase up monies outstanding. As your accounts software usually stores your customer contact details, especially email addresses, these reminders can be sent out at the click of your mouse button.

Other accounting data available:

• Stock management reports
• Departmental reporting
• Key Indicator Reports
• Online links to submit VAT returns
• Automated integration of payroll data
Many accounts software developers, like Xero, offer a range of bolt-on products for specialist businesses and integrations. And last but not least, it is possible to build bespoke reports to highlight specific reporting concerns. As long as data is being collected it can usually be reported on.

Time to review your data forecasting needs.

Using data wisely and with a clear intent to forward your business development during these unprecedented times has to be a winner. Please call so we can discuss your needs and help you maximise the benefits of your investment in data management for your business.