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Overcoming accounting challenges of small business owners with modern solutions

Managing the financial aspects of a small business can be a daunting task, especially when manual accounting processes hinder efficiency and accuracy. As a small business owner, you understand the importance of keeping up with your accounting systems, but the challenges of time-consuming manual entry, limited financial visibility, and the risk of errors can become overwhelming. However, there's good news on the horizon.

With modern, cloud-based accounting solutions like Microsoft Dynamics 365 Business Central, you can overcome these hurdles and empower yourself with a streamlined and efficient financial management system.

Here's how it can alleviate the pain points commonly faced by small business owners:

  1. Time-consuming manual processes. Do you often find yourself manually recording transactions, reconciling accounts, or generating financial reports which are sadly, some, if not most of them were prone to errors? How much time do you spend on routine tasks that take away valuable time from focusing on growing your business? Business Central includes workflow automation capabilities that enable you to define and automate your business processes. You can create workflows for approvals, notifications, and reminders, reducing manual intervention and ensuring timely completion of tasks. You can also automate the manual data entry by leveraging features like Optical Character Recognition (OCR) and data capturing. Using these features will help to easily scan and import invoices, receipts, and other financial documents. This allows the system to extract relevant information automatically, which in turn eliminates the need for manual data entry and reducing the chances of errors.

  2. Inaccurate financial records. Is having access to real-time data on cash flow, sales, expenses and your business' overall financial health a challenging hurdle for you? Do you often receive delayed or outdated financial information, making it difficult to make informed business decisions? We often hear this from our clients before they went on with their ERP modernization journey with Business Central. Manual systems often lack robust reporting capabilities, making it challenging to generate meaningful financial reports and analyze key performance indicators. This can hinder strategic decision-making and long-term planning. Not to mention, inaccurate financial records can lead to incorrect tax filings, financial mismanagement, and potential compliance issues. Business owners can rest easy by taking advantage of Business Central's robust reporting capabilities, enabling you to create customized financial reports. Whether leveraging its in-built reports or integrating it with Power BI, you can generate reports automatically based on real-time data, eliminating the need for manual data extraction and report compilation. This saves you time and provides accurate insights into your financial performance.

  3. Difficulty in tracking and managing expenses. Do you manually keep track of your business' expenses, receipts, and invoices? If you do, then you know just how difficult it is to accurately categorize expenses, monitor spending, and spot cost-saving opportunities. Thankfully, the expense management capabilities of Business Central can simplify and expedite the process of recording and managing expenses. You can capture expenses using mobile devices, snap photos of receipts, and submit expense reports on-the-go. This eliminates the need for manual paper-based processes and streamlines expense reimbursement workflows.

  4. Inefficient collaboration with accountants. If your small business works with external accountants or tax professionals, not having a robust accounting system can create inefficiencies in exchanging financial data and documentation. It may also increase the likelihood of errors during the transfer of information. With Business Central accessible from anywhere with an internet connection, small business owners and their external accountants can collaborate and work on accounting tasks in real-time, regardless of their physical location. The system also includes document management features that enable you to store, share, and collaborate on financial documents with your external accountants. You can upload supporting documents, such as invoices, receipts, and bank statements, directly to the system, eliminating the need for manual file exchanges. This central repository ensures that both you and your accountants have access to the same set of documents, reducing confusion and improving collaboration. Lastly, you can take advantage of Business Central's communication tools and notifications that facilitate seamless communication between you and your external accountants. You can exchange messages, leave comments, and receive notifications within the system, ensuring that important information or updates are shared promptly. This streamlines collaboration and minimizes the risk of miscommunication or delays.

  5. Compliance and regulatory risks. Are you able to keep up with changing tax laws and industry requirements for your business? Manual accounting processes increase the risk of non-compliance with tax regulations and reporting requirements which could lead to potential penalties, fines, and reputational damage. Business Central helps you to mitigate your compliance and regulatory risks effectively in a number of ways. First and foremost, it has robust financial control capabilities that allow you to define segregation of duties, assign appropriate user permissions, and implement approval workflows. These measures help prevent unauthorized access, reduce the risk of fraud, and ensure compliance with regulatory requirements. Additionally, Business Central maintains an audit trail that tracks all financial transactions and changes, providing a transparent record for auditing purposes. Secondly, Business Central includes pre-built compliance reports and templates that are designed to meet the specific needs of different regions and industries, making it easier for small businesses to generate compliant financial statements and reports. It has built-in tax calculation rules and templates so you can automatically calculate taxes based on your applicable regional tax laws and rates and provides support for electronic tax filing and reporting. These help in reducing the risk of errors, ensure accurate tax compliance and streamline tax-related processes. Compliance often involves maintaining proper documentation and adhering to document retention policies. With Business Central, you can set document retention policies to automatically manage document archiving and deletion based on predefined rules.

  6. Inadequate data security. Storing financial information in paper-based records, spreadsheets, or file shares can pose security risks. Physical documents can be lost, damaged, or accessed by unauthorized individuals while electronic data stored in unprotected files or on-premises file shares may be susceptible to cyber threats. Business Central employs robust security measures to protect your financial data from unauthorized access, ensuring compliance with data protection and privacy regulations. It provides role-based security, encryption, and other advanced security features to safeguard your sensitive financial information.

  7. Limited scalability. Does the growing volume of financial transactions becoming harder to manage? While it's a good indication because it means your business is growing, keeping up with business growth without an efficient accounting system can lead to inefficiencies and potential bottlenecks. As your business grows, Business Central allows you to easily add or remove users, increase storage capacity, and scale up resources based on your evolving accounting needs. It supports app extensions and customization options, allowing you to tailor the system to meet your specific accounting needs. You can extend the functionality of Business Central by integrating additional apps or developing customizations using the robust development platform. This flexibility enables you to adapt the system to new processes or requirements as your business scales, ensuring that it continues to meet your evolving accounting challenges.

Reimagine your financial management processes

By recognizing the pain points associated with manual accounting systems and embracing modern solutions like Microsoft Dynamics 365 Business Central, you can revolutionize your financial management processes. Implementing a robust accounting system will help you enhance your business' scalability, ensure compliance, make informed decisions based on reliable financial data, and position your business for sustainable growth.

Embrace the power of technology and take control of your financial future. Invest in a modern accounting solution and experience the transformative impact it can have on your small business. Get started with our complimentary 4-hour business readiness assessment.


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