Intuit Australia is helping entrepreneurs nationwide get a head start to the new financial year with a free eBook that guides company owners through the transition to cloud accounting to boost their chances of success.
Available via the Intuit Small Business Centre, the eBook addresses common misconceptions about the cloud, provides insights on how to make the switch as seamless as possible and includes expert commentary along with local business case studies.
It comes off the back of new research revealing the majority of startups and small businesses are yet to take advantage of the range of affordable, easy to use online financial management systems available to them.
Managing Director of Intuit Australia, Nicolette Maury, said cloud accounting has the power to transform business life and encourages entrepreneurs to make the transition now for a fresh start from 1 July.
“According to the Intuit Financial Fitness Startup Study, more than six in 10 (66 per cent) startups use spreadsheets, manual methods or pen and paper to manage their finances. Half (56 per cent) of established small businesses also rely on time-draining, error-prone ledgers and spreadsheets,”* she said.
“With cloud accounting software like QuickBooks Online, transactions are always up to date, compliance is simplified, payroll is automatically calculated and integrated, invoicing elements are captured, and debtors and creditors are a breeze to track. You can work on the move, accessing your data anytime, anywhere and on any device, and make smarter, more informed business decisions based on real-time insights.”
Clayton Oates, Chief Solutions Officer at QA Business, an IT consultancy focused on small business efficiency, agreed that the start of the financial year is a logical timeframe for a move to cloud accounting.
“If you're using desktop accounting software or spreadsheets, you run the risk of having data in multiple locations, which means there is no single version of the truth. Cloud accounting can make your business much more efficient and it's time for business owners to realise its potential. If you’re aiming for a 1 July blast-off, now is the time to take action.”
Sam Rotberg, Director at AS Partners with 30 years’ experience in business and taxation advisory roles, said anyone who is still using spreadsheets or a desktop accounting solution must get their head into the cloud and out of the sand.
“Get your accountant or bookkeeper involved in the process and make use of free trials, online resources and training where possible to help select the right program for you and ensure a smooth transition.”
For more information, small businesses are encouraged to download the free guide here.
EOFY Tips for Startups and Small Businesses
With 30 June rapidly approaching and your free eBook on moving to the cloud in hand, Intuit and its accounting and bookkeeping partners offer the following tips to help you prepare for EOFY and get a fast start to FY’16.
1. Reconcile…everything. This doesn’t just mean bank accounts and credit card accounts, but also reconciliation of your wages to the general ledger, as well as your balance sheet accounts, including pre-payments, payroll liability accounts, ATO Integrated accounts and GST accounts.
Alee Cochrane, an experienced accountant and Director of Total Bookkeeping & Business Solutions, advises to also: “check your suspense account if you use one, to ensure that all transactions have been allocated to the relevant expense or balance sheet accounts.”
2. Prepare your paperwork. Collect all receipts and have supporting documents to hand for significant purchases such as insurances, registrations and finance arrangements. Remember to provide a copy of the paperwork even if you are unsure your purchase is an asset.
If you are using cloud accounting software, you can easily scan or take a photo from a mobile device and attach your receipts directly to the relevant transaction and it will be stored forever.
3. Order your assets. Tell your financial advisor if any assets were sold, stolen or written off during the year, and review last year’s asset register (found near the back of your financial statements), marking any that are no longer relevant to your business. This will help keep your business asset register and depreciation schedule in order.
4. Provide statements ASAP and review un-cleared transactions. Bookkeepers and accountants love clients who provide bank and credit card statements that cover end of June, and do it as soon as possible, according to Diane Lucas, a certified bookkeeper, BAS agent and founder of Direct Management.
“Another good exercise is to create a list of un-cleared transactions such as unpresented cheques that demonstrate why your bank register may have a different balance to the bank statement. This is a real time saver and will ensure an easy reconciliation process,” she said.
5. Get your super and payroll sorted. Lielette Calleja, an accountant with 15 years’ experience and Director of bookkeeping consultancy allthatcounts, advises businesses to pay any super liability balances due before 30 June so they can be taken up as a tax deduction this financial year.
“When it comes to payroll and preparing annual payment summaries, little things count so ensure staff details are up to date including date of birth, email addresses, super information and tax file numbers. With cloud accounting solutions like QuickBooks Online, a great benefit is that payroll is also automated and integrated into your file, which helps simplify the business of EOFY,” said Calleja.
Please be sure to speak to a qualified accountant and/or the Australian Tax Office (ATO) if you have questions or require support.
*Refers to Galaxy Research conducted in 2014 among 500 small business owners throughout Australia, who employ 20 people or less and generate annual turnovers of $2 million or less, and who have been in business for less than five years.
About Intuit Inc.
Intuit Inc. creates business and financial management solutions that simplify the business of life for small businesses, consumers and accounting professionals.
Its flagship products and services include QuickBooks®, Quicken® and TurboTax®, which make it easier to manage small businesses and payroll processing, personal finance, and tax preparation and filing. Mint.com provides a fresh, easy and intelligent way for people to manage their money, while Demandforce® offers marketing and communication tools for small businesses. ProSeries® and Lacerte® are Intuit's leading tax preparation offerings for professional accountants.
Founded in 1983, Intuit had revenue of $4.5 billion in its fiscal year 2014. The company has approximately 8,000 employees with major offices in the United States, Canada, the United Kingdom, India, Australia and other locations. More information can be found at www.intuit.com.