Advivo Partner, Chris Morris, delves into the importance of staying on top of your cloud accounting to ensure your business runs smoothly
Online cloud accounting software such as Xero, makes generating mainstream business reports and timely access to information for decision making purposes extremely easy for business owners.
This also means that owners can easily supply their financial information to third parties such as banks, the Queensland Building and Construction Commission (QBCC), suppliers and other stakeholders, often at the click of a button.
Whilst cloud accounting has many benefits, and I will continue to be a firm advocate for it, I must warn against the risk of simply providing your ‘management accounts’ when requested, without first understanding what the users of that information are looking for, and how your own information compares with that. Imagine the consequences if your bank was assessing your loan application based on old or incorrect information!
A common example of where things can go wrong is the QBCC’s online reporting requirements. Their process clearly indicates that ‘management accounts’ are sufficient to be uploaded and that licensees need not involve professionals to prepare their management accounts.
As licensees will be aware, the financial requirements to maintain QBCC licensing can be quite onerous and, in many cases, licensees are unaware of the specific financial requirements of the QBCC, or the impact that the format or categorisation of their raw management reports can have on their licensing.
I recently wrote an article on the importance of being ‘financially fit’. Some level of financial savviness is necessary to put your business goals and actions in place. But in order to put yourself in a position where you’re able to act on opportunities, you must first understand the key numbers that drive your business and know how to use these key numbers to support your decision making.
This concept is extremely relevant for business owners to stay on top of and is highlighted by the importance of understanding the information you provide to third parties such as banks and the QBCC, as well as understanding the implications of getting that wrong!
Advivo can assist with getting your financials in order
Luckily for business owners and QBCC licensees, Advivo’s Monthly Service Programs (MSPs) are specifically designed to ensure your management financials are up to date, accurate and appropriate for such information requests. This means you can rest easy knowing that the information you (and others) rely on for your business is up to date, accurate and relevant. Furthermore, part of your MSP will include the preparation of such management reports which can be relied on for supplying to third parties such as those mentioned above.
Our MSPs are specifically designed for those who want to understand their numbers and drive positive outcomes for their business. New clients are often surprised to learn that in many circumstances simply supplying their financial information as requested without a) understanding it; or b) being confident in its accuracy, can in fact cause them or their business more harm than good.
If you would like to learn more about how you can become financially fit yourself, or the many other benefits which come with enrolling in our Monthly Service Programs, please complete this form and we’ll contact you the same business day to understand more about your situation and how we can work with you to help achieve your goals.
Written By Chris Morris