Changing your accounting records in the cloud

What you need to know about cloud accounting technology

Remember when all transactions had to be recorded at the end of the month before a data file rollover was performed, so that new month transactions could be recorded? Once this step was completed, you couldn’t enter any transactions to the previous accounting period. Thankfully, cloud accounting and bookkeeping technology has changed and simplified this process.

However, have you considered the potential ramifications of recording transactions in a previous accounting period?

What does cloud accounting technology mean for bookkeepers?

Business owners should understand that recording transactions from live data flow is not the complete process. The move to the cloud doesn’t take away the role of accountants and bookkeepers. Accountants and bookkeepers still play an essential role in ensuring all transactions are captured for the month, to help give your business direction for planning, cash flow and strategy making.

Need to record a transaction outside the accounting period?

Once your business activity statement (BAS) and tax returns are complete, you should not be recording any transactions to those accounting periods unless various vital steps and processes are followed. Accountants and bookkeepers are equipped with the knowledge and skills to understand the transaction implications and whether it can be changed for months or financial years that have been already completed. Even if you have access to lock and unlock completed accounting periods, it’s important to consult with your bookkeeper before you make any changes.  

How cloud accounting works with your accountant and bookkeeper

If you’re not completely sure about making changes in your online accounting system without creating time-sapping problems, get in touch with our Figure 8 Accounts bookkeepers. Our team of experts is available to help you make changes to your records outside of accounting periods, minimising the risks and saving you time. Talk to us today.

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