Even just a few years ago, shopping was straightforward: You entered a store, picked out your products, handed the cashier some money, and left with your purchases.

But today? What does it take to learn how to sell on online marketplaces? Thanks to online shopping, the process can look quite a bit different. In 2020, over 80% of consumers across the globe shopped online, proving that online eCommerce transactions are booming. Digital sales have even previously eclipsed volumes done in brick-and-mortar, general merchandise stores.

Online marketplaces make up a big piece of the digital shopping pie. For example, these platforms making up half of the online shopping orders in 2019.

So, for retailers who want to get in front of more customers and land more sales, all the focus can’t be placed on their independent eCommerce websites. Certainly, online marketplaces deserve some attention too.

Never sold on a platform like Amazon or Etsy before? Fortunately, getting up and running is relatively easy, especially with this guide in your back pocket. 

There’s no shortage of platforms that you could choose to sell your products on. Take comfort in the fact that you don’t need to be everywhere all at once. You’re better off selecting the platforms that are the best fit for your business, products, and audience.

Some of the most popular platforms worth considering include:

• Amazon: Best choice for sellers who want to get in front of a large (albeit competitive) audience
  
  
• eBay: Best choice for sellers who have used or unwanted items to sell
  
  
• Etsy: Best choice for sellers with handmade or vintage items to sell
  
  
• Facebook Marketplace: Best choice for sellers who have one-off items to sell locally

The above criteria can help you narrow down which marketplaces are the right fit for you. But, if you’re still stuck, a few things to consider include:

• What types of products do you sell? For example, someone who makes handmade earrings is an excellent fit for Etsy, while a coffee brand might succeed on Amazon.
  
  
• Where is your target market shopping? You don’t need to have super formal market research to figure this out. Even asking your existing customers where they prefer to shop online can help you zone in on the platforms that appeal most to your target shoppers.
  
  
• What fees should you consider? Most online marketplaces will have seller fees. So, it’s worth exploring those to know what you’re signing up for (and so you can price accordingly). 
  

Many retailers find success with an omni-channel or a multi-channel approach. These industry terms mean using several sales channels at once. For example, you might sell your aprons on your eCommerce website, Etsy, and Amazon. That’s multi-channel selling, which helps you build your brand and get in front of even more customers.

Once you know where you want to sell, it’s time to get your seller account set up. Again, most marketplaces are intuitive. The platform will walk you through how to start your account step by step. 

For easy access, here are detailed directions from each of the popular platforms we’ve already discussed: 

• How to sell on Amazon
• How to sell on eBay
• How to sell on Etsy
• How to sell on Facebook Marketplace

Setting up your accounts will take a little bit of time. It’s wise to be thorough and detailed from the get-go. When setting up your account and profile, including entering your bank information, writing a bio if needed, and filling in all the requested fields, take the time to get it right the first time. Doing so will ensure you’re ready to start making sales. Above all, proper setup prevents any significant headaches or hang-ups down the line. 

With your accounts set to go, it’s time to turn your attention toward your specific products. It will be challenging to set aside your overall business and brand during this time.

For every product you choose to sell on an online marketplace, you’ll create a unique product listing. The listing is where you’ll describe the item, state a price, including any photos, and generally provide the information that shoppers need when deciding whether to make a purchase. 

The specifics of your product listings will vary depending on what platform you’re selling on. Above all, it’s essential to be aware of and familiarize yourself with any guidelines or requirements you must follow. 

Consider the weight and size of your products. Oversized products will cost more to ship, so you will want to consider that. Handling the items is another cost that includes item storage and packaging materials. There are handling fee calculators and formulas to help you determine how much is appropriate to charge.

There are a few best practices that can help you regardless of which marketplace you’re using: 

• Showcase high-quality product photos:
Online shopping means that potential customers can’t see or touch your product. Product photos are the next best thing, so they need to be high-quality. Ensure that they’re clear and taken against a plain background so that shoppers can get a good look at your product. Remember also to take photos from multiple angles and distances so peop le can get various perspectives.

• Incorporate keywords into your description: 
Much like social media, online marketplaces use a complex algorithm to decide which products appear near the top of search results. Therefore, one of the best ways to set your products up for success is to incorporate relevant keywords into your product description. Keyword Tool can help you find the right keywords, and they even offer specific tools focused on keywords for Amazon and eBay.

• Choose the right product title:
Check out any online marketplace, and you’ll see that product titles aren’t short and vague. But, again, this comes back to keywords and the algorithm. Including keywords in your product title can help your products rank higher. So, rather than simply naming your product “apron,” you might call it “unisex barbeque apron with pockets and adjustable straps.”

• Set the right price:
Pricing your products is complex and deserves an entire lesson on its own. It would be best if you considered the cost to make your goods. In addition, it’s also worth checking the price of competitive products on the same platform. If your products don’t fall within a similar range (or lack a standout feature that warrants a drastically different price), you might want to reevaluate your pricing structure.

There are plenty more tips and best practices that are specific to the marketplace you’re selling on. So, do your research to ensure you’re making the absolute most of each listing.

Online marketplaces naturally have enormous audiences. Millions and millions of people use the platforms daily. But that doesn’t mean they’re a “build it, and they will come” opportunity for retailers and business owners.

Once your account is up and running, and your product listings are live, you must explore other avenues to get more eyes on your product. Options include steps like:

• Using the platform’s ad options or sponsored listings to promote your products
• Sharing your product listings to your brand’s social media accounts
• Asking for customer reviews, ratings, testimonials, and referrals 
  

Don’t assume that having a presence on online platforms means the sales will roll in on autopilot. Like anything else with your business, you need to invest elbow grease in promoting your products and refining your strategies actively.

When it comes to refining your presence on online platforms, the smartest thing you can do is monitor your performance. Online marketplaces include analytics to help you understand your traffic volume, top traffic sources, top-performing products, and more.

Review that data frequently to understand what adjustments you need to make. Questions to ask yourself include:

• Are certain products selling more than others? Why? 
• Are your target keywords performing as well as you thought? 
• Are your prices still accurate and relevant? 
• Are you receiving any negative reviews or feedback? 

There’s plenty more that you could dig into, but those questions will give you a starting point and help you understand what’s working well—and what needs to be changed. 

Online marketplaces are popular among shoppers. Plus they’re approachable and accessible for all types of sellers, from new business owners starting a wholesale business to seasoned online retail sellers. You don’t need a custom website or endless eCommerce knowledge to get up and to run. On the other hand, you need to follow the steps above to create your account.

For retailers who want to strengthen their brand, reach more customers, and leverage several sales channels, it’s hard to overstate the importance of marketplaces. 

So, you have a starting point on how to sell on online marketplaces. And when online marketplaces continue growing in popularity, ask yourself this: Can you afford not to have a presence there?

Learn how eCommerce can keep your business strong here. Consider the advantages of an online shop here. For background on all things accounting software related, visit www.accountingsoftwareworld.com. If you’d like to learn about QuickBooks or other accounting products’ eCommerce capabilities shop here.

The importance of workflow automation cannot be denied. These 5 best practices for automating your office workflows will guide you to the success you desire. First, it ensures specific tasks complete on time. Additionally, processes allow your employees to focus on more productive activities instead of wasting their time on mundane assignments.

However, even though you have automated specific processes, anticipate that they might be hampered by inadvertent delays, obstacles, and bottlenecks. Some difficulties that occur are almost always inevitable. Employees who need to review applications, for instance, become ill and miss work. Documents and files are misplaced. Machine failures occur in manufacturing operations.

Nevertheless, for everything that is avoidable, there is a lot you can do to maintain your automated workflows running well. After all, in the words of Benjamin Franklin, “by neglecting to prepare, you are prepared to fail!”
In this article, we discuss five excellent practices to prevent needless bottlenecks in your workflows. However, before we delve into these practices, let’s first understand what workflow automation is.

Workflow automation eliminates the issues created by manual processes by connecting systems with software. As a result, automating procedures in your organization may significantly decrease the money and time required to operate. In addition, automation allows workers to focus on mission-critical tasks while avoiding costly mistakes. For example, you can make the process more efficient and potentially save costs by automating your accounting activities.

Due to its efficiency, workflow automation has grown tremendously in the past few years. In fact, according to a global survey conducted by McKinsey & Co. in 2020, 66% of business leaders from a broad cross-selection industry were initiating solutions to automate at least one of their business processes. You can learn the fundamentals of workflow in our K2 course Workflow and Automation Essentials.

Workflow automation is becoming more sophisticated inside accounting products, document management products, and from the significant productivity suite providers such as Microsoft 365 with modules like Microsoft Power Automate or Zoho Flow. But we must get the workflows optimized first! Consider these 5 best practices for automating your office workflows.

The most straightforward procedures are sometimes more complicated than you realize, specifically with numerous phases and approvals. That is why almost every workflow requires a map.

Workflow process mapping is a method of keeping track of your work steps so that you understand what each step does, why it is functioning, and what to do when something “breaks.”

Workflow maps don’t have to be complex or challenging to create and understand. They can be just a few post-it notes on a board or a doodle in a notebook. Remember, a post-it note turned 45 degrees makes a diamond shape. So, one pad of post-it notes gives you all the flow-charting shapes you need.

However, having a finished a written or sketched workflow map may keep you and your employees aware of every stage in the process, so they understand what to expect. In addition, process mapping your existing process (“as-is”) lets you transition the process to a new, hopefully, better, process (“to-be”).

Hence, before you do anything at all, begin with workflow mapping. Then, even if your workflow is already in place, map it out. Consider each process and step and reviewed it meticulously.

Workflow automation is more than just making a list of operations that need improvement and then crossing them off one by one.

Creating business automation and managing in this manner is akin to attempting to untangle tangled wires by grabbing one and pulling. Of course, you’ll make some headway. Those victories, though, will be few. However, you’ll soon find that you’ve made the knots much, much worse. And repairing it will require additional time and resources. The current term “hairball” describes what many have created with flawed workflow processes and best-of-breed SaaS solution selection.

Instead, it would be best to emphasize process automation by weighing efficiency, simplicity of use, ROI, and business effect. Then, if done correctly, you would be able to automate the right activities, which will allow you to reap the benefits of automation. Sometimes you need a separate workflow product like XCM, Doc.It, or with the workflow built into most accounting software products today.

When things are going wrong, it’s simple to point the finger at those allocated to certain workflow phases. If an approval step, for example, is delayed, the person in charge of authorizing it may get emails about this until the stage is approved. However, management or leadership should first ask questions before making assumptions about why a specific process phase hasn’t been performed.

Is the person in charge of this process step equipped with all they need to execute it? Do they even have access to the necessary tools? Further, are they receiving alerts? Above all, are they informed of the problem?

When you inquire about your process constraints, you are more likely to obtain a helpful response. However, when something goes wrong, consult with your staff before making the decision. We recommend a debriefing when there are process failures to get to the root cause.

Moreover, these issues can be avoided by ensuring that all the stakeholders are trained and given all the tools needed to carry out their part efficiently.

Regardless of how efficient your company is, you almost certainly have sluggish, clunky, and needlessly burdensome procedures. Thinking that automation would solve inefficient workflows can lead to disillusionment. Your processes will become ineffective automated procedures because of automation.

Effective workflow automation necessitates a reassessment of your organization’s business practices. Before you attempt to automate outdated workflows, you may need to restore or entirely rebuild them. Don’t be scared to divide the colossal process down into smaller sections. Breaking processes into smaller steps might increase agility while decreasing siloed data in your business. For example, industry businesses commonly have 250-400 processes, where CPA Firms commonly have 45-70 workflows.

An excellent place to start is picking a process that doesn’t require drastic changes to your existing functions, such as invoice approval. If done well, the automation of this process can lead to multiple benefits without disrupting many of your current processes.

Sometimes problems occur that have nothing to do with a particular procedure. Instead, the issues are a product of more profound disarray inside the organization. As a result, incorporating workflow planning and mapping into your everyday routines and implementing business process management (BPM) solutions into the company becomes critical. You want to turn your organization into process thinkers constantly looking for a better way to do things.

BPM can assist in keeping the company on track. It can help the company define priorities. Moreover, the right BPM can help plan for errors at a higher level.

Disruptions in one or two workflows become considerably less of an issue when effectively managed by the entire company. So, if you aren’t currently using BPM methodologies in your business, start now.

The earlier your business eliminates ineffective procedures and replaces them with successful ones, the smoother your workflows would become. If you have targeted the proper market, buyers should quickly discover everything about the product and business through their social media accounts.

Don’t overlook the signals that your firm needs to be automated. As a result, your company can consolidate its back-office operations, streamline marketing activities, and cut expenses.

However, establishing automated business processes is not always straightforward. Hopefully, these 5 best practices for automating your office workflows have helped you understand the actions you must take. Unfortunately, several stumbling blocks and blunders might derail your efforts all along the way.

Hiring a professional expert is the key to avoiding these stumbling blocks. Most importantly, the contracted expertise can place your company on a path to quick success with process automation. In addition, you may benefit from the experience of an automation specialist by collaborating with them. They will not only design the apps your organization needs to automate workflows, but they will also design a business-defining strategy to get you there in perhaps the most effective manner possible. In conclusion, you can’t outsource the understanding of your processes. You must know and maintain these with your personnel. You can’t let the expertise leave with the consultant.

Learn more from K2 You can learn more about workflow in our K2 course Workflow and Automation Essentials.

Companies spend hundreds of hours every year trying to find out how to manage and keep track of their money. It’s stressful for business owners to think of the time, money, and effort they put into daily status reports, monthly financials, and yearly tax preparations. Artificial intelligence in accounting software, pre-accounting tools, and robotic process automation (RPA) optimize how transactions flow through systems. Do you want to take advantage of this improved automation? You’ll learn how with our 5 Easy Steps to Automation of the Accounting Process.

One can get to know about automation testing with the help guides found online. Automation testing paved the way for implementing automation in business processes. Repeatable business process workflow adds value to each step of the process.

However, we can’t automate every single business process. But some operations are perfect for automation. Luckily for business owners, bookkeeping, tax computations, and accounting are just some of these processes.

Businesses often make use of accounting software programs to automate accounting tasks.  These computer programs can do in a minute what an average person can do in a day. With the correct data inputs, you can make complex reports within minutes or seconds. You may not even need to touch a calculator to get your work done.

There’s a long list of benefits to automating business processes like bookkeeping and tax calculations. But, before we dive into how you can automate accounting, let’s take a quick look at why you should turn to automation.

In most businesses, saving time equates to saving money. For example, suppose an accountant uses a software program that helps them crunch the numbers and prepare a report. What used to take the whole day will now take them less than an hour.

There may be minimal reconciliation needed. The accountant only needs to double-check what the system prepared. Confirming the classifications are right, and that the system has posted transactions in the right account initially while remaining in balance are the critical steps. Pre-accounting tools like Vic.ai or Dext are currently doing this type of work. The accountant can then spend the rest of their day doing more productive tasks.

Even the best accountants make mistakes. If you catch the error early, the worst that can happen is you spend a few more hours rectifying the mistake. But accounting blunders can be costly. Automation reduces human errors, making way for more accurate reports and calculations.

Learning how to utilize automation properly for accounting tasks can help streamline business processes. Making sure your automated processes are correctly working is key to ensuring the accuracy of your reports.

But, whether you’re planning to optimize your existing accounting program or you’re looking at the top accounting software systems in the market, it’s best that you also learn automation testing. Learning automation testing allows you to check whether your automation efforts are working and how well they’re performing to achieve your goals. Automation testing also helps ensure the accuracy of your reports and the reliability of your data.

You’re more productive when you can perform more tasks in a shorter amount of time. It’s the exact meaning of productivity. So external, contracted, or freelance accounting professionals who get billed by the hour may start to think that automated accounting will take their jobs away. News flash: It could be the complete opposite.

When you learn to make computer programs work for you, you can get more things done for more clients with less effort. You even free up your schedule for something you’re more useful for — like guiding clients and helping them manage and grow their financial wealth. If you have built a Client Accounting Services (CAS) practice, you can add Advisory Services for greater client satisfaction.

The transition from manual processes and Excel files to automated accounting systems may be difficult. It’s no small change you’re planning to undertake here. But it doesn’t have to be so complicated. So, are you ready to take your first step into accounting automation? Here are the five easy steps to get you from manual to automated accounting:

How much of a change you can expect depends on where you currently stand in terms of accounting processes. For example, how much of your accounting is done manually, and how much of it can be automated?

This task may take you a while, but you need to understand how the people involved in accounting processes do their jobs. These aren’t just your junior and senior accountants. First, you need to list all the tools that you currently use, who uses them, and what you use them for.

For example, you might be using Excel for budgeting, forecasting, and expense management. The finance department, accounting department, and finance manager use Excel for one or more of these functions.

On the other hand, payroll managers and junior accountants may be using another software for payroll management. Therefore, if secondary tools are required for any core accounting tool to function, you should include them in the list.

Now that you know your business needs, you’ll be able to choose an accounting system that works for your business. Full automation of accounting processes can take you a considerable amount of time and money to implement. Still, implementing a new accounting system may prove to be the best course for your business.

Consider your accounting goals, your budget, and your workforce when you’re choosing a core accounting system. Aside from the basic features, it would help to consider security features, customer support, automation integration, and user experience.

After you’ve chosen a core accounting software system, the next step is to start data migration. Data migration plans should help you identify what and how much data needs to be transferred. You might also need to put older data into archives.

This step should also allow everyone involved in the accounting process to adjust to the new system. Training should be provided to employees. Primary users should learn the best way to navigate the system because they will work with it more often than any other employee.

Adjustment can take weeks or months, depending on how much of a change you’re implementing. However, by the end of the adjustment period, primary users of this core system should already be confident in the automation performing basic and complex accounting tasks.

As time passes, you get fewer questions from your core users. The reduction in questions occurs because they have become familiar with the features and already know how to use the accounting system. However, your secondary users may be having problems. They may have even found other manual tasks to automate. It is at this point that you can add pre-accounting tools and robotic process automation (RPA).

An accounting system that isn’t customized for your business is doubtful to serve as an all-in-one solution. However, it’s typical for business owners who already use an off-the-shelf accounting system to integrate additional automation functions.

Businesses rarely use just one system for all their financial management needs. While you already have a core accounting system, you may want to utilize additional tools to help your employees. In addition, some accounting systems allow automation integrations. As always, automation testing should be performed before any of these functions deal with any actual data.

Monitoring your systems and making sure that they’re working as they should is key to maintaining accurate and reliable accounting. In addition, you should observe the following results of automating your accounting process:

• Data reports are more accurate, and there are fewer accounting errors.
  
• Accounting teams are more efficient and productive. They should be spending less time generating results and more time performing analysis.
  
• Redundancies are found, and accounting processes are optimized.
  

You should be seeing an increase in the quality of work produced, an increase in employee productivity, and a decrease in human errors. In other words, the business should now benefit from automating the accounting process.

Automating accounting isn’t an easy feat, but doing so can help businesses save time, money, and effort. In addition, it boosts productivity and greatly reduces human error, and these benefits apply to freelance and remote accountants. With the 5 Easy Steps to Automation of the Accounting Process, you have a formula to make your processes easier and automated.

Accounting automation isn’t just about choosing the most expensive or the most popular accounting system in the market. Instead, it’s about knowing where you stand and choosing an automated accounting system that helps you achieve your goals.

Learn more about emerging technologies, RPA and accounting software with K2E Canada Inc. CPD courses.

Should you help clients prepare for an economic boom or act yourself? Do you expect to see trade increase in a post-COVID-19 world? Will activity and consumer confidence rise enough that both restaurant and retail sales show recovery? If the 9.8% increase in March 2021 is any indication, think yes. It seems that employment, retail spending, and manufacturing are all exhibiting solid gains. Vaccinations offer light at the end of the tunnel.  Meanwhile, there is great hope that the end of the pandemic is approaching. With this in mind, businesses need to prepare for a boom in trade in a post-COVID-19 world. Certainly, companies should take full advantage of any economic improvements. How can your company plan for a return to active trade in a post-pandemic world?

Although uncertainties do remain, the overall economic outlook is brighter. Most importantly, putting measures into place now can ease the transition from restrictions. After that, converting from government help to a self-supporting, thriving business once again will take active management. In other words, can you prepare your business for an increase in trade after the effects of the pandemic have eased?

Your accountant will understand your business and the industry in which you operate. In addition, accountants can help you plan for the short-term and long-term future. They will develop the cash flow and sales forecasts underpinning your decisions.  Above all, wise plans allow you to proceed with confidence in a post-coronavirus world.

A professional accountant is a crucial partner for any business owner. They will save you time and money in the long run. In addition, they provide a reliable source of support that helps you build your business up again.

Management accounting software allows you to keep an eye on cash flow, create comprehensive budgets and cash flow forecasts. After that, you can view the general state of your business at the touch of a button. Review your options at AccountingSoftwareWorld.

You can grant access to your software to your accountant. After that, you can benefit from their professional opinion and insight. Above all, you will make both day-to-day and long-term strategic decisions with more confidence as your trade volumes start to boom.

Additional sales may require additional funding to meet the sudden increase in demand. Alternative finance can be of enormous value in this respect. It is typically more flexible and quicker to access than a business bank loan and can sustain your business over the long term.

• If you are a credit-based business, invoice finance or factoring uses the value of your invoices to generate funding. You may also be able to hand over your credit control function to the financier. You can focus on steering your business forward.

• Retail businesses that take card payments can also benefit from alternative funding called merchant cash advances. Cash advances provide funds based on the value of the card sales. Getting cash advances offers vital support to business growth.

• Asset-based businesses can leverage the value of their hard assets to generate a cash lump sum and still use the asset as before. This cash input can fund the extra workforce or materials needed to meet additional post-COVID-19 demand.

Building resilience within your supply chain is crucial. To prepare for an economic boom, planning to deal with supply chain shortages during a boom in trade is wise. For instance, if you rely on a single supplier, consider how you would prevent a disruption in supply from damaging your business.

Along with your accountant, you should map out your supply chain to see where it may need reinforcing, identify any risks, and mitigate them as necessary. You could locate potential alternative sources of supply. Most importantly, you will not lose customers due to missing components or late deliveries.

Emerging from the pandemic as a stronger, more streamlined business requires careful planning and preparation. If you do not currently use professional accounting services, look for a new accountant who is reliable and specializes in your field. Check for credentials from the AICPA or CPA Canada. Understand the accountant’s qualifications, working practices, and specialties. Consider vendor directories if you need specific help with QuickBooks or Xero. If you are an accountant acting in an advisory role, make sure you assist current clients. Proactively market your planning and cash flow services to prospective businesses.

Attend CPE courses and conferences in person or online to learn more about planning, cash flow and budgeting.

Cash flow tracking solutions can be the difference between success and failure. Above all, happiness is a positive cash flow. By understanding exactly how much cash is in your business, you can track your business’s financial health. Similarly, sales and expenses, as well as capital investments, impact your bank balance. In other words, the route you take to assess company cash flow is likely to differ based on several factors.  For instance, the size of your business, industry, workforce size, and growth potential affect cashflow. In addition, innovative solutions to track company cash flow may help you manage this aspect of your business. Keith Tully, a partner at Real Business Rescue, talks about why keeping a close eye on company cash flow can prevent dangerous trading behavior.

There are numerous cloud accounting and bookkeeping software providers for small and medium enterprises, limited companies, and flexible workers. Depending on the platform that you choose to use, there are additional features that can help simplify the accounting journey, such as:

Cash Flow in Cloud Accounting: Mainstream cloud bookkeeping and accounting software products like QuickBooks Online, Sage 50cloud Accounting, Xero, and Zoho Books have cash flow reports. Tracking significant aspects of the business is built into these products, including invoicing, bank transactions, and credit cards.

Cash Flow products that extend accounting: Included cash flow reports in accounting products are simple. Therefore, sometimes you need or want more capabilities. For instance, cash flow products include CashFlowTool (Finagraph), Fathom, Futrli, Jirav, LivePlan (Palo Alto), and Spotlight Reporting.

Expenses Log: Track your allowable expenses on the go. By logging receipts and invoices digitally, you can save yourself valuable hours, reduce administrative paperwork, and speed up the process for your accountant.

Stopwatch: Many cloud accounting platforms offer a stopwatch or time tracking facility.  Therefore, you can time the number of hours worked and convert this into an invoice detailing billable hours, suitable for contractors, freelancers, and self-employed professionals.

Mileage tracking: Many cloud accounting platforms offer a mileage tracking facility. Therefore, you can track the miles driven and convert this into a billable transaction for invoices or expense reporting.

Credit Control: As part of your software subscription, you may be able to access credit control facilities to track upcoming payments, automate reminders, and flag outstanding invoices. By actively keeping tabs on the cash moving in and out of your business, you can protect company cash flow and encourage on-time payments.
By engineering technology into the accounting and bookkeeping journey, you can operate efficiently and reduce inaccuracies. Such software can allow you to store your financial data digitally and securely.  After that, transferring the data directly to your accountant or bookkeeper is easier.

Before cloud bookkeeping and accounting software, storing financial records in spreadsheets was a convenient and accessible way to keep track of company finances. Many business owners still do this. By regularly updating cash flow on excel spreadsheets, company directors could better budget company finances.

Accounting professionals typically produced master spreadsheets with integrated formulas. These spreadsheets helped to efficiently calculate whether the business was running up losses or generating profits, considering accruals and amounts owed. During an age where industry-standard accounting software was scarce and hard to come by, spreadsheets represented an efficient operating means.

Suppose your business is showing signs of poor cash flow.  It is, therefore, unable to fulfill financial commitments, such as paying staff wages and replenishing stock. In that case, you may need to conduct a cash flow test for insolvency. This test functions as a financial health check on the business and can help indicate if your business is contingently insolvent. In addition to a cash flow test, you should seek specialist advice from a practitioner with insolvency experience. Rescuing a company is part art and part science.

Tracking company cash flow can help paint an accurate image of how your business is faring at any given time. By incorporating tools to understand company cash flow better, you can act pre-emptively. If your business is due to run out of cash and requires a cash injection, it is better to know as far in advance as possible. On the other hand, if your business exceeds expectations and is beating records, tracking such progress can help fuel company growth.

This short article was trying to expose you to cash flow tracking solutions. There are many more products to consider than those we have covered. We expect accounting professionals to assist their organizations and clients with cash flow issues. In conclusion, we know that both techniques and products can help maintain a positive cash flow. And isn’t that happiness?

Understand the latest in cash flow technologies in our CPD courses on accounting and customer support systems in small business accounting with add-ons or mid-market accounting, which includes cash flow systems.