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Making changes to accounting records in the cloud
How many people recall a time where we needed to ensure that all transactions were recorded at the end of the month before a data file rollover was performed, allowing new month transactions to be recorded. Once this step was completed, no one could enter any transactions to the previous accounting period. Thankfully, cloud technology has changed this process.
However, do we understand the ramifications of recording transactions in a previous accounting period?
How cloud technology is changing processes
The big aim to complete month-end transactions is slowly diminishing but it comes with a cost which many businesses are missing. Today we are live recording transactions with the help of cloud software and bank statements feeding information directly to our business software. Accountants and bookkeeper play a great role in ensuring all transactions are captured for the month to give a business position for planning, cash flow and strategy making. The move to the cloud, however, does not take away the role of accountants and bookkeepers.
When should we stop recording transactions?
SME business owners need to understand that recording transactions from live data flow are not the complete process.
Once the business activity statement(BAS) and tax returns are complete, we should not be a recording any transactions to those accounting periods, unless various steps and processes are followed. Accountants and bookkeepers are equipped with knowledge and skills to understand the transaction implications and whether it can be changed for months or financial years completed.
I am worried I might mess things up – what should I do?
Even if you have access to lock and unlock completed accounting periods, you shouldn’t be changing anything before consulting your accountants and bookkeepers. If you’re not completely sure about making changes without creating time sapping problems, get in touch with us today so we can help.
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