Bookkeeping services has been always the first step towards properly managing and accounting work of any business corporation. When it comes to business management, year 2020 shall be earmarked for adapting changes and keeping-up to trends for business survival. Bookkeeping becomes the base of many analytical activities related to the incorporations. Let’s dig-in the trends to be seen in bookkeeping services ahead.
Use of cloud and Artificial Intelligence
Many business corporations depend on the cloud for multiple operations from storing data to connectivity and reducing business costs. An emerging bookkeeping and accounting trend, the Cloud today is being widely used to work and allow easy access to world-class infrastructure without the need to spend large amounts of money on it. Cloud accounting helps in birds-eye view and improved collaboration with team members and a better overview of the business’ finances. AI also keeps the trends in the past into check to help with the future course of action with reduced efforts and maximising effectiveness in the whole process
Cloud Bookkeeping services requires software that runs on servers and connectivity to the internet. The benefits of cloud accounting include –
Automation
Automation in bookkeeping services is a necessity that can definitely save corporations long hours on accounting. It is slowly and steadily eliminating the requirement for man-held data entry and saving businesses a great amount of production hours. Automation in bookkeeping is intended to reduce the load of manual bookkeeping and accounting, and use that time to deal with actual real-time accounting issues. Although automation may seem like a threat for accountants, they aren’t going to replace them in the near future. Automating bookkeeping services and the related process is inevitably beneficial for entrepreneurs and small business owners/firms.
Collaborative and Integrative Approach
Bookkeeping services are undoubtedly seeing the upcoming shift in software and automation, but also in way of engaging and working with their clients. Collaborative accounting may not be a new thing at all, although a new angle in collaborative accounting involves using the internet and shifting technology to work in tandem in real-time irrespective of their location.
It implies to multiple services available today. A sale could be incurred by a salesperson sitting at one location using a mobile device or tablet and issues related to the same could be resolved by a manager at a different location. All that needs to be put into place is the technology required, tools, and portals in order to carry out smooth flow information between the collaborators.
OUTSOURCING
One of the futuristic shifts in bookkeeping / accounting services is outsourcing of finance and accounting activities. Outsourcing of accounting definitely allows businesses to keep their eyes on their core business areas instead of building an accounts department for clerical work. Outsourcing accounting / bookkeeping services can help institutions reduce costs, and also nullify risk of fraudulent activities and allow access to the services of dedicated professionals in the respective field. Below are the advantages of outsourcing accounting and bookkeeping services
Bookkeeping – a shift towards advisory and planning
All this new technology & automation means the bookkeeping role is changing. Bookkeepers are becoming more like business advisors and virtual CFOs, rather than data processors. Ability to read and analyse the numbers and make appropriate suggestions in accordance to the way the clients work is how most of the bookkeepers are investing their time these days. Apart from working on financial software, bookkeeping services focus on what the numbers mean for business performance and communicate the same to their clients. Bookkeepers that haven’t accepted technology or are hesitant to help business owners beyond basic data entry will definitely need to upgrade if they want to flourish in 2020 and beyond.
Finding balance in business
Bookkeeping services these days have allowed business owners find work life balance. There has been large amount of data available with bookkeepers which has allowed them to empower their clients. There has been shift from regular data entry job to planning. This has allowed clients to shift their focus on the prime customers rather than every loose customer which leaks their cash flow. All this time the business firms have allowed people to find balance in their life and allowed to improve their productivity in the core areas.
Business accounting involves a wide range of activities to capture a business’s entire financial picture. It is a very time consuming and a complex process when done manually. But accounting software (such as Xero accounting) has simplified these processes, providing company owners some extra time to concentrate on the management and implementation of their policies.
Accounting software is a digital solution with which small and medium size business owners, Bookkeeping Services professionals and accountants can easily process transactions and maintain their business accounts. The accounting software is normally designed by a 3rd party for small businesses, although big corporations have their personalised accounting software. In this article, we will discuss the benefits and drawbacks of using the accounting software, which are:
Automation:
Manual data entry is tedious and prone to errors. With the help of your bookkeeping services the software such as Xero accounting can be setup in 30 minutes. Once the software is established with bank accounts, debts and vendors, the business owner only needs to update information as it comes in. Also, this software needs you to insert data only once and will automatically derive your data when you require to formulate a transaction. This software works with minimum manual data entry and increases efficiency. Accounting software provides quick and accurate invoicing, and fast generation of documents, as reports can be drawn straight from the software. All documents, including invoices, credit notes, purchase orders, printing statements, and payroll, can be automatically generated.
Accuracy:
A good accounting software solution such as Xero, effectively removes the risk of human error, as only one accounting entry is required as opposed to two or three when done manually. The accounting software is programmed to be simple and user friendly. The calculations are reliable and accurate, so a business owner can precisely monitor available funds at any time. The accounting solutions work on Invoice software, that allows you to enter a tax rate when relevant, with the system doing all the math. This is very advantageous when you have detailed invoices where different products are charged at different rates. Once a system is set up properly, you choose items to be invoiced, and the rest is done for you. There are many low risks of blunder and error in accounting software.
Efficient:
Data entry in Xero accounting software can be done quicker than manual processing because of its built-in databases of customers, supplier details, and stock records. Once you get the hang of the software, or whenever it’s being implemented, you’ll find lots of extra time on your plate thanks to its ability to crunch numbers and present all sorts of data by making a few a click. Additionally, despite common assumptions, there is lots of low-cost accounting software in the market. Thus, you can easily get access to primary accounting benefits without surrendering all your cashflow at once. The software has some upfront cost as you might need to contact bookkeeping services provider to set up the accounts and train the business owner, but it quickly becomes cost-effective. The owner is not required to pay for anything beyond the software purchase and setup. Most programs work with operating systems for years and only require a few inexpensive upgrades.
Implementation:
Generally, manual accounts are easier and more flexible to set up than accounting software. Depending on the software you choose, you may or may not find it challenging to operate. Some comprehensive accounting software covers just about every aspect all in one secure cloud-based area. There is always a potential threat of users to perform the software tasks inaccurately, or if a user tries to do something but inadvertently does something else, it might take some work to undo the errors. Thus, to avoid these errors, you will probably need some initial help in setting up accounting software. Our company provides such initial training and back supports to help you avoid such errors. Although once setup, the user can save significant amount of time and money.
Frauds and security threats:
Dependency on computers sometimes leads to bigger problems. Data stored electronically can be manipulated and accessed if accurate security measures and controls are not in place. With more information being stored in the cloud, there are more possibilities for hackers to access your firm’s financial data and utilise it. There is also a chance of someone within the company accessing the information, possibly stealing money from the daily deposit, and modifying the data in the program. Thus, strict controls are needed to make sure only authorized personnel use the accounting software and have access to reports. Since business data can be confidential and sensitive, using accounting software may increase the potential for fraud. Having said that, the accounting software called Xero is one of the most secure software that we have come across. The high level of security and implementation of the GDPR ensures the data is kept safe.
Overall, we can see that the benefits of having an accounting software overrule its disadvantages, as the accounting software generate accurate numbers through automation and improves the efficiency of the bookkeeping process. On the other hand, the disadvantages can be easily overcome by taking a few simple measures like initial training and strict control on the access of the software data. Thus, it can be said that having accounting software is beneficial for small business owners.
Turn COVID-19 crisis into opportunities
3 things you need to consider to stay ahead in business
The rapid spread of the Coronavirus, also known as Covid-19, has affected all of us. Many countries are on lockdown, the busiest street now seems deserted, public places have been closed, and events have been cancelled. All these situations had an enormous impact on our lives. Not only that, but it has also affected our business and economy. Many businesses are encouraged to stop their non-essential functions for the sake of social distancing and to stop the spread of the virus.
As bookkeepers, we understand the damage this can do and have done on the businesses. Many small-business across the country have already observed a negative impact on their financial position. Furthermore, a record-breaking number of companies are filing for bankruptcy or closing down. For many industries, the numbers are assumed to get worse. These business should consider turning COVID-19 crisis into opportunities.
From the economic point of view, we might be on the verge of massive transformations, and its consequences will be visible for the years to come. And while the business environment is guaranteed to change, there are several steps you can take to keep your business operations afloat. Most importantly, the key to facing this pandemic is to stay positive, look for opportunities and not panic. Therefore, we’ll like to suggest some useful tips that you can use to mitigate risk, minimize the potentially detrimental consequences, Incas opportunities and stay ahead during this pandemic. Check them out!
During the lockdown, it has become hard to maintain the books of accounts, especially if you do not use online bookkeeping software. Thus, our first tip is that you contact the bookkeeping service providers who are experts in the software such as Xero and start maintaining your day to day accounts digitally. Transferring your accounts online will help you in getting real-time assessments. By following this simple tip, you will be able to track your unnecessary expenses against the revenue and reduce them. During this contagion, it is crucial for firms to conduct a precise assessment of their variable and fixed costs as well as the present revenues.
Moreover, it is proven that keeping a close eye on your day to day transaction can help you in making various financial decisions. It will help you to track your liquidity and investment capacity. This assessment will provide a fair understanding of the business’s financial position and assist you in planning your next step in the current disconcerted environment.
Our second tip to you is that you should plan out an effective way to communicate with your stakeholders, most importantly, your customers and employees. Your employees rely on you, so keep them updated about every development. You should keep them abreast of significant developments so they won’t be surprised if there is a sudden change in the business operations. As a businessman, you need to keep your employees engaged and stay in touch with them through video conferencing applications such as Google meet and Zoom.
Additionally, it would help if you also remain transparent to your consumers about what your business is going through. Customers can sympathize with companies facing a crisis, as long as the communication is effective and transparent.
The idea is that we are in this together, so make sure that your stakeholder knows about the strategies you are preparing to create a safe environment for your employees and customers. This will help you to build a rewarding relationship with them, which you can encash in the future.
We are currently living in a rather uncertain time; the business environment is changing rapidly, so it is essential to be prepared for both the threats and the opportunities. For instance, with sales going down and consumer spending less, you might need to adopt alternative sources of income to support your business operation. If the business is still going well, you should try to put more money aside for an emergency. You should also contact your credit card companies to see if you can extend your credit or if they have a relief policy in response to the Coronavirus crisis.
Further, if your merchandise, services, or business model can be driven to assist people and address problems associated with the current situation, you can shield your business by aggressively tracking such opportunities. Contact the experts at your company and work on plans to respond in a way that can boost sales.
So, our final tip to you is that, put on a decent pair of trainers and be ready to encash the new opportunity that comes your way. Good luck!
The UK’s Award-winning Xero bookkeeping in Coventry & Worcester. We specialise in Xero and provide the right level of personalised bookkeeping support.
Established in 2001 Ken Bell Accounting had already developed a substantial reputation as a leading regional firm, prior to becoming Xero specialists in 2010. The business enjoys a large and growing client base providing bookkeeping services made up predominantly of small businesses across the UK. Encompassing almost every kind of business, the firm’s current portfolio includes a great number of small property investment companies, retailers and professional services consultancies.
All of our bookkeepers are ICB and/or AAT certified and are Xero Certified Advisors.
Dave Perrigo CTA, FCCA, Bsc. (Hons) Perrigo Accountants
John Morgan, MD Veriti Guardians, London
We’ve built our business through great service, long term
Xero users supported
years established
years Xero specialists
