“I only want my financial data once per month" – said no business owner ever.
Let's be real: the concept of waiting until the 20th of each month to know how your business performed makes zero sense in 2024. It's an artifact of old technology limitations, not what businesses actually need.
Here's what we've learned from talking to hundreds of business owners:
- They want to know their cash position NOW
- They need insights when making decisions, not weeks later
- 90% accurate data today beats 100% accurate data from three weeks ago
The technology exists to deliver this. The real challenge? Getting accounting firms to move past "that's how we've always done it."
What would you rather have... perfect books once a month, or actionable insights every day?
Real-time accounting puts an end to all the uncertainty. Keep reading to see how your business can benefit from upgrading to real-time accounting technology that gives you an up-to-date, live look at your financial activity.
What is real-time accounting?
Real-time accounting is the practice of reviewing and analyzing financial data for accuracy so you can see balances, expenses, and cash flow in near real-time.
This happens through a combination of modern financial tools and software – like Digits – that can manually categorize transactions or generate custom reports, and human accountants who serve as the strategic advisors while AI handles the grunt work.
With these combined insights, you can make better in-the-moment decisions for your business.
What is real-time bookkeeping?
Not to be confused with real-time accounting, real-time bookkeeping is the practice of immediately processing financial transactions as they occur.
You’ll use AI accounting software to automate these tasks and streamline bookkeeping operations. In doing so, you’re able to access accurate, up-to-date financial data from anywhere at any time.
The benefits of real-time accounting
While traditional accounting processes still have value, as a small business, you can’t always afford to wait 30 to 90 days to get a detailed look at your financial data. Real-time accounting solves that issue and gives you a live look at your finances whenever you need it.
But aside from the obvious – it’s real-time! – here are some of the top benefits we’ve found of implementing this type of accounting function.
1. Data-driven insights
This conversation with BILL's Chief Customer Officer, Sarah Acton and Hiline CEO, Matt Gardner about the importance of TIMELY, data-driven insights says it all. Yet most small businesses are looking at month-old data and making decisions based on what happened weeks ago. That's like driving your car by only looking in the rearview mirror! But here's the kicker – throwing random tools at the problem isn't the answer. You need strategic implementation of real-time accounting tools that actually deliver ROI.
BONUS: If you have time, watch the full conversation here.
2. Remote access to financial data
You won't have to go into the office and sort through filing cabinets (yep, we know businesses that still keep records this way) or dig through Google Drive to find the data you need.
All your financial data is stored in a secure cloud-based accounting solution, so authorized users can remotely access that information from anywhere and complete accounting tasks virtually.
3. Improved accounting accuracy
When your accounting team processes things by hand, there’s bound to be a mistake or two. Even a tiny mistake can make a big impact on your books.
By automating bookkeeping and accounting tasks, you leave less room for human error and establish audit trails in case of surprise mistakes. You can even use AI to double-check your work after the fact and resolve mistakes right away and vice versa.
4. Saved time on bookkeeping tasks
There’s a reason traditional accounting doesn’t deliver data for a month or two — it’s tedious work.
AI accounting lets you automate your operations, freeing up time otherwise spent on lagging bookkeeping tasks like invoice processing and expense management.
5. Connected financial tools
Gone are the days of bouncing between systems to grab financial numbers and input them into spreadsheets.
When you opt for real-time accounting, you integrate your various financial tools and bank accounts, so your accounting software immediately reflects all your transactions for your reference.
6. Customized reporting
No more waiting for month- or quarter-end reports that can leave issues unaddressed for too long.
With customizable dashboards that show your data as it happens, you get access to real-time financial reporting that lets you make decisions based on insights at that exact moment.
7. Reduced operations costs
Real-time accounting software offers a more affordable path to optimizing cash flow and limiting operational spending.
The monthly expense for that technology — and the automation it offers — is more affordable than hiring someone to manage data entry or manually process invoices and expenses.
The real-world application of AI-driven accounting
Seeing your real-time financial data sounds nice in theory, right? But how does that actually make a difference in your day-to-day? We’re so glad you asked!
Having real-time access to your accounting operations and finances gives you the freedom and peace of mind you might not even realize you’re missing.
1. Prove your financial status
When you’re looking to attract investors or show existing stakeholders that you’re on solid financial ground, they’re not going to wait around for you to get three-month-old statements. They want to know where you stand now.
Real-time accounting lets you pull accurate, up-to-date reports that show your financial health right when you need to.
2. Make tax season a breeze
Wasn’t it fun spending most of Q1 gathering all the documents and receipts you need to file your taxes? Yeah, we didn’t think so.
Using real-time accounting software means all your expense and income data is in one place. You just have to click a few buttons and send it over to your tax professional come tax season.
3. Report to regulatory bodies
If you get a notice from a regulatory agency asking for your financial reports, there’s no time to waste or room for errors.
Real-time digital financial data makes audits more manageable and ensures compliance since you can quickly share the information they’re looking for and prove you’re adhering to all required laws.
4. Make better choices
You can’t make good decisions using financial data that’s several months old.
Instead, base your business decisions on real-time data and react quickly to market changes or surprise circumstances. Looking to make choices for growth? Use current data to accurately forecast future financial positions and protect your company.
5. Focus on running your business
As a business owner, you have a million responsibilities. You don’t have that much time to balance your books, no matter how important they are.
Let your software handle your bookkeeping and financial reporting so you can spend more time keeping your business running strong.
Break free from basic bookkeeping and accounting
Traditional acccounting isn’t enough when you’re looking to grow your business. You need a real-time, accurate view of your financial operations if you’re going to make strategic decisions.
Hiline combines expert financial knowledge with cutting-edge financial technology to automate your outsourced bookkeeping and translate your financial data into actionable strategies.
It’s time to get the financial support you deserve. Ask us how we can help elevate your financial operations processes today.
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