Why every club should embrace online accounting
The amount of online accounting technology that is available today for clubs to run their financial affairs is amazing. While changing from the traditional ways clubs have managed their financial affairs takes a little work the benefits are huge and ongoing year after year, no matter how big or small your club is. These benefits include:
- Significantly reducing the workload of the Treasurer and many other volunteers
- Protects the cash and assets of the club
- Makes things significantly easier for everybody needing to pay or receive funds
- Takes less time to do things
Let us show you how using technology to manage the financial affairs of the club achieves these goals. Most importantly, where to start.
Online or cloud-based accounting systems
No matter how large or small your club is, every club should be starting to think about moving their accounting to an online cloud-based accounting system.
What is a cloud-based accounting system?
A cloud-based accounting system such as XERO is where the club licenses, the accounting system, and all the information and transactions are stored within the system via the internet. This is what “information being in the cloud” means. This is rather than information being stored on people’s computers where it is inaccessible from anywhere else. This means as you change Treasurers, all you have to do is give them access to the clubs online accounts and they immediately have access to all the clubs historical records.
Is our data safe using online accounting systems?
Today, if you use the services of a reputable provider like XERO then your data is incredibly safe. The reality is it will be so much safer than how clubs traditionally managed their financial information. Your data will be continually backed up and you don’t have to worry about losing the computer with all the information on it. You won’t need to worry if the Treasurer leaves and takes all the clubs financial information with them.
Benefits of a cloud-based accounting system?
Anything stored online or “in the cloud” can be accessed by people with authorisation using the internet from any computer anywhere in the world. If your club requires its accounts to be audited, the entire process is easier. An auditor would only need temporary access to the system to conduct an audit.
The ability to have multiple users accessing the club’s financial information means that it is now easier than ever for Treasurers to recruit one or more assistant treasurers to help reduce the workload.
There is a cost to cloud-based online accounting systems
When we raise the concept of cloud-based accounting systems they immediately raise the fact that these systems cost money. They would be required to start paying for a service traditionally provided for free by volunteers.
That is true – but the costs are minimal. Even for the smallest clubs – compared to the benefits and value that online cloud-based accounting systems will bring to your club.
Costs can be as low as $20 per month so don’t be put off by the costs because paying for an online, cloud-based accounting system will be some of the best money your club will spend each year.
The power of online cloud-based accounting systems
A cloud-based accounting system is the foundation to eliminating so much work, traditionally done by Treasurers.
A properly installed accounting system links directly to your club’s bank accounts. It automatically imports the transactions from your bank account into the accounting system.
Over time as it starts to learn about your club. It will start to predict what accounts each transaction is to go to in the accounting system. Then all the Treasure has to do is tick each one off or nominate the correct account. The next step is the transactions automatically load into the accounting system.
If you have put into the accounting system at the start of the year your budgets and cash flow statements then at the end of each month (or whenever you want) the accounting system will automatically produce your updated financial reports for your committee meeting without you doing anything.
Just so we are clear, if you have the system set up correctly then information will flow easily and directly. It will go straight from your bank account, into your accounting system and then into your financial accounts. This will only take a couple of minutes work.
So, the key to smashing the treasurer’s workload and giving them the tools to do their role. They need to empower the committee with financial information. They need to protect the assets and cash of the club and undertake all the reporting required. The easiest method to achieve this is to get as many of the financial transactions undertaken online as possible.
Keep reading to see how easy this can be.