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.
How Can Outsourcing Bookeeper / Bookkeeping Services Change Your Business? Running a business may be a fulfilling and rewarding job. It’ll allow you to prosper beyond your imagination and assist you become increasingly financially independent. That’s why you ought to always want your business to succeed . For this to happen, your business, whether a start-up venture or a longstanding company, should be managed appropriately by you.
You should always keep your ears sharpand learn of the comings and goings of your business. But, of course, you can’t make it happen all by yourself. Running a business takes determination, commitment and dedication. But, more important than these, you require a help and another set of fresh eyes to assist you within the day-to-day operations. You want to be smart enough to rent outside help to assist within the business operations. You ought to enlist competent people to assist you manage and grow your business.
One of the people you might want to hire or outsource bookkeeping services. He or she will surely make your life easier.
What is a bookkeeper?
A bookkeeper is an AAT or ICB qualified professional whose main task is record-keeping or bookkeeping. Bookkeeping is an accounting process in a business that permits for the monitoring and recording of all financial transactions, purchases, sales, receipts, and payments.
What do they do?
A bookkeeper can pay close attention to your day-to-day operations to trace assets, expenses and cash flows. They perform checks and balances to form sure that your business is usually profiting and maximising its resources. Their tasks also involve preparing various source documents for all transactions made during operational hours.
How will it change your business?
Having a bookkeeper can offer you the following benefits:
1. Better financial management
Bookkeeping features a way of keeping you on top of your game since it can monitor the income of your business. It means you’ll manage your finances better and inform you immediately if your company is on the proper track.
2. No more tax obligation problems
Taxes can haunt your business if you did not organised your ledgers and balance sheets once you are near the tax season. A bookkeepers are going to be ready to assist you keep track of each documents and records in order to complete your annual taxes without a glitch.
3. Business planning made easy
You don’t need to always worry about your next course of action. Bookkeeping allows you to create an in depth marketing research which will help outline your future business strategy and marketing plan whenever you wantto.
4. No lost records
Bookkeepers are meticulous when it involves recording and organising your documents, so you don’t need to worry about losing critical financial data because it’s bound to be found within the accounts.
Making your business successful is not any small feat. Being an SMEowner comes with its own challenges. But, you’ll surely make it easier by hiring bookkeeping services. Doing this is able to go fartoward helping you grow your business faster.
If you need to our source bookkeeping services please contact award winning xero bookkeeping firm, Kenbell Accounting.
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