Why Every Business Should Embrace Online Accounting

In today’s business environment, real-time financial visibility is no longer a luxury - it’s essential. Yet many business owners still treat accounting as something to look at once a year, often relying on outdated spreadsheets or systems that weren’t designed for the demands of a modern organisation.

If you want to grow sustainably, maintain control, and avoid unnecessary stress, adopting an online accounting platform, and using it properly, is one of the most valuable steps you can take. 

At GRA we use Xero and recommend it to our clients, but there are other online software solutions available too. 

How often should you check your business accounts?

Modern accounting is a day-to-day business tool, not an annual admin task.

Cloud accounting software has fundamentally changed the way businessowners can (and should) operate. When used correctly, a system like Xero becomes a powerful dashboard that allows you to understand what is happening in your business today, not months later.

What are the advantages of online accounting software?

Used well, online accounting helps you:

1. Manage your cash flow in real time

Cash flow is the lifeblood of every business, yet it’s also the area where most businesses get into trouble. With an online platform, you can instantly see:

• What money is coming in

• What money is going out

• How much cash is available

• What upcoming commitments you need to plan for

This visibility enables better decision-making, reduces surprises, and helps you stay in control.

2. Stay on top of receivables and payables

Late invoices and slow-paying clients can quickly put pressure on your business. Xero allows you to:

• Track outstanding invoices

• Automate reminders

• Follow up overdue payments early

• Keep supplier bills organised and scheduled

This keeps your working capital healthy and reduces the stress of missing payments or chasing clients manually.

3. Monitor profitability throughout the year

You don’t need to wait until year-end to understand whether your business is making money.

With accurate coding and up-to-date data, online accounting lets you:

• Track margins

• Monitor job or product profitability

• Compare performance month-to-month or year-to-date

• Identify trends early and take action

The difference is night and day. Instead of reacting to results months later, you can steer your business proactively.

Do I need training to use accounting software properly?

Software is only as good as the person using it. While tools like Xero are intuitive, they still require proper setup, training, and ongoing care to produce meaningful information. As the saying goes, “Garbage in equals garbage out.” This is where many businesses fall short.

Get trained – or get a qualified bookkeeper

A one-off introduction to Xero isn’t enough. To get real value, you must:

• Understand how to code transactions correctly

• Reconcile regularly

• Use bank feeds properly

• Maintain accurate records

• Produce meaningful reports

If you don’t have the time or confidence to manage this yourself, engaging a qualified bookkeeper is one of the smartest investments you can make. Quality bookkeeping not only streamlines the year-end accounting process but also gives you reliable information for effective planning and decision-making throughout the year.

Our team at GRA provides comprehensive bookkeeping support to ensure your financial data is accurate, up-to-date, and maintained to a high standard. Contact us if you’d like to find out more about this service.

We also provide training in Xero if you'd like to manage your online accounting yourself. Most clients only need about an hour with one of our Xero team to get up to speed. 

Case studies

Here are some examples to illustrate the impact using online software (and not using it) can have on a business. 

Case study 1: Fast invoicing, slow collecting

Sue and Steve own a painting and decorating business, and have a great reputation and lots of referred business. With a good team of tradespeople, they had multiple jobs on the go. Sue and Steve were meticulous about sending out invoices to their clients, but didn’t have the systems in place to manage payments, which meant many invoices were left uncollected for long periods of time. 

By year end, while they were looking very profitable on paper, not much of that profit had made its way to their bank account. To make matters worse, they had a large tax bill to pay, and no cash flow with which to pay it. Not being able to pay tax due to the IRD created some serious problems and stress. 

If Sue and Steve had used good accounting software, they could have managed their cash flow much more efficiently, chased invoices when they were due, and would have had money in their account to pay their tax bill. 

Case study 2: The DIY bookkeeper

Charlie was very confident about using Xero for his successful engineering business and wanted to save money by handling his own bookkeeping. Unfortunately, without proper training, he made some common mistakes, such as claiming GST on wages, private expenses, and other non-deductible items. 

These errors accumulated over the year and only came to light during the annual accounts process, resulting in unexpected GST liabilities with IRD. This was very stressful and put huge pressure on his cash flow. 

Charlie’s intentions were good, but he made mistakes, which could have easily been avoided by having the right training in Xero, or the support of a qualified bookkeeper. 

Case study 3: The organised operators

Sean and Melissa are active property traders, completing multiple trades each year, and this complements their buy-and-hold investing activities. 

At the outset, they consulted GRA about how to manage their accounts, and took up our recommendation of using Xero. After getting trained in how to use the software properly (which only took about an hour of their time), they have maintained their ledger meticulously, with every transaction coded accurately and their accounts kept up to date throughout the year. 

Because their financial records have been consistently reliable, estimating their provisional tax position is straightforward – often months before the tax return is even filed.

With clear visibility of true profit and upcoming tax obligations, there are no surprises, no last-minute stress, and no guesswork. For Sean and Melissa, provisional tax is a predictable and manageable part of running their property investing business, rather than a source of anxiety.

Summary - there’s no longer any excuse to fly blind

We live in an era where businessowners can access their financial information anytime, anywhere, on any device. The technology exists, it’s affordable, and it’s incredibly powerful when used correctly.

Failing to adopt online accounting – or using it poorly – is equivalent to driving your business with your eyes closed. You might get lucky for a while, but eventually you will hit something.

With the right tools, training, and support, you can take control of your finances, build a sustainable business, and make decisions with confidence.

Get in touch with your GRA CSM if you’d like to find out more about Xero, or about whether bookkeeping services might be right for you. If you are not already a client, book a meeting with one of our consultants where we can look at your situation and discuss options like Xero. The first meeting is free for new clients.