3 Reasons Why Your Business Should Automate Bookkeeping

Automation is one of the biggest trends that made a mark in the bookkeeping industry and with its rapid growth, it is no surprise that many business owners no longer hesitate to grab hold of this new opportunity to keep their financial activities in check. Although human adoption seems to be slower as some businesses are still keeping traditional bookkeeping systems, incorporating automation into your workflow makes a huge difference. Here are three reasons to introduce automation to your bookkeeping system.

1. Save Money

Small business owners try to reduce expenses by handling all of the tasks as much as possible. However, as the company grows, businesses find it difficult to keep up, hence a bookkeeper becomes a need. One bookkeeper cannot handle all the workload and hiring another bookkeeper means spending more money. Automating your workflow will help you standardise your process so you don’t have to worry about your financial status. The information you need from your monthly bank statements will be available for download.

2. Save Time

Reducing repetitive tasks is one of the benefits of automating your bookkeeping system. Imagine how much time you can save from doing away with manual jobs. Automated bookkeeping allows you to generate accurate information that you can access and review at your convenience. However, it is important to remember that automated coding does not necessarily guarantee accuracy as you still need to review monthly transactions. Keep in mind that the purpose of automation is to finish a bookkeeping task the quickest way possible, but checking information to ensure there are no missing transactions is still required.

3. Freedom

The best thing about automated bookkeeping is that you will no longer have to wait for your bookkeeper to provide you information because you can gain access to valuable information using a cloud app. You can even meet with clients monthly to discuss trends and results based on the financial reports you have gathered. As a result, you can set a plan so you can handle cash flow wisely. Keeping the books up to date will never be a problem because it only requires minimal management. With less time and attention required in keeping numbers up to date, you can surely take care of other aspects of your business.

One thing that deters some small business owners from automating bookkeeping is the fear of replacing the bookkeeping work. Since you switch from traditional to modern bookkeeping, you need to learn new processes to appreciate the benefits that automation provides. In the long run, business owners will be able to understand how automation can improve their lives.

The Difference Cloud Bookkeeping And Traditional Methods

Cloud computing is one of the business trends that continue to thrive. All kinds of businesses utilise cloud not only to connect with customers but also to make business practices more efficient. In a study conducted by Computerworld, 42% of IT decision makers increased spending on Cloud computing in 2015.

Bookkeeping is one of the aspects of your business that will benefit from cloud solutions. You can manage your finances easily and access data anywhere.

Cloud Bookkeeping Vs Traditional Bookkeeping

Although cloud technology is a buzzword, only a few will be able to understand what it really does to your business. Cloud stores data and other essential financial information, making it available to business owners and employees so long as there is access to the Internet. Unlike traditional bookkeeping software that requires one dedicated hard drive to store or record financial data, cloud bookkeeping software is Internet-based. With that said, it does not affect your existing storage.

When it comes to costs, cloud software is more affordable because it does not require additional software or hardware to run it. In the event your computer crashes, your data will remain secure because cloud-based bookkeeping programs will back up your data automatically. You can also use the cloud-based solutions on many different platforms, something that traditional bookkeeping software cannot offer.

When can you maximise the benefits of cloud-based software?

As they say, cloud-based solutions are not for everyone. When you are making a buying decision, it is essential to assess your business needs before you invest in cloud bookkeeping software.

  • If your company has a limited budget, investing in cloud bookkeeping software is the way to go because it costs less over time.
  • Business owners who have remote workers can also take advantage of the flexibility of cloud-based solutions because it can be accessed anytime and anywhere.
  • For small companies that are concerned about security, many cloud-based programs can offer increased levels of security to keep your data protected against threats.

The fear of embracing cloud technology

For business owners who are not familiar with on-premise financial system such as Cloud ERP, letting go of traditional bookkeeping methods is a difficult decision to make. Some concerns being raised include availability, security, ownership and location of financial data, software updates and getting used to a new financial system.

However, cloud does not give organizations a hard time adapting to change. Even smaller firms can use cloud bookkeeping technology without undergoing extensive training. It also offers a good number of benefits such as scalability and flexibility. You can even gain better control of your finances because information is available in real time.

4 Benefits of Going Paperless

Going paperless in a traditional business environment is seemingly a drastic move. It requires you to step out of your comfort zone and deviate from the usual process. Most companies are more comfortable using paper than computers. However, as paper starts to become obsolete, digital files will make record-keeping easy. It is also imperative that businesses shifting from traditional to advanced business environment should increase levels of security. Vital information can be lost or stolen at the drop of a hat without putting a security plan in place. If you are still having second thoughts about going digital, here are the significant benefits that will help you make the right decision.

It is cost effective.

For small business owners, cost-cutting is a constant practice that ensures a steady flow of cash in times of rainy days. Expense reduction involves minimising spending habits especially when purchasing office supplies such as paper, ink and many others. Although you need to spend money on the transition, the long-term benefits you will enjoy outweigh the cost.

It prevents overcrowding office space.

Paper can take up a ton of space in your office. You need boxes, cabinets and storerooms for your documents. Aside from running the risk of losing important bookkeeping files, you will need to free up closets to give way to new files. Once you go paperless, problems with office space will become a thing of the past. Since digital files are stored remotely, you will no longer have to waste money on physical file storage.

It saves time.

Filing documents can be time-consuming as you need to be accurate and make sure that receipts are stored correctly. It will also be difficult for you to access information instantaneously as you need to dig from a pile of documents. Paperless filing will reduce time spent on accessing valuable information. In just a few clicks, you will be able to get the documents you need.

It improves level of security.

When filing documents, it is also important that sensitive files are protected. Digital documents are kept in a safe place where layers of security prevents unauthorised individuals from accessing the files. If employees leave, it is easy for small business owners to keep documents confidential because of advanced file storage method.

When it comes to transitioning from traditional to advanced business environment, going paperless is not an easy task. This means that you have to be prepared by creating a long-term plan and providing extensive training to employees. You will also have to invest in additional software especially in terms of implementing policies on security.

The Transformation That Technology Has Brought To Bookkeeping

Technology is an essential component of the bookkeeping industry, and it has been evident in recent years. Aside from a plethora of bolt-on, upgrades and advancements, technology made it easy for business owners to take care of various financial tasks. Accessing data in real time, generating reports and monitoring expenses are just some of the perks of using advanced business technology.

Platforms such as Xero are operated via cloud-based technology. This is why taking care of many aspects of business operations becomes a breeze. Even clients can view, edit or even add notes to the statements if needed. Invoices are paid in a timely manner because bookkeepers are given options to download transactions. It ensures that you have the most accurate invoices and statements.

Manual Payroll Management: A Thing of the Past

It is not fun managing payroll when you have many obligations to fulfil. However, you can switch from traditional payroll to full-service payroll. Automation is key. When payroll system is automated, dealing with payroll complexities become a thing of the past. These systems are easy to use so everyone involved in the bookkeeping tasks can add personal notes and manage payroll efficiently.

Payroll management software makes the task more of a dream than a nightmare. This is because the challenges associated with tracking employees and sub-contractors are reduced or even completely eliminated as the software can be downloaded from your smartphone, tablets and  other types of mobile devices. With this capability, business owners who are on the go will no longer have difficulties keeping track of every transaction regardless of their location.

Cloud-based software and technologies allow business owners to gain access to accurate business information. Reports can be verified and edited so that it provides the most accurate information. Since this is the most convenient way to keep financial records, bookkeepers and accountants can discuss the reports with the business owners. The relationship becomes fluid and interactive as everyone is involved.

Even if the bookkeeper you hired is hundreds of miles away from your physical office, it does not mean you cannot get the job done. Collaboration becomes possible for people across the globe and discussing reports with your bookkeeper over the phone will never be a problem. Accessibility makes it convenient to connect, monitor, update and make plans. If you are using cloud-based technology to run your business, you are going to stay ahead of the game because you are increasing productivity, reducing manual tasks and maximising your business’ earning potential.

 

Advanced Business Techhnology vs Traditional Business Environment

Getting things done is such a challenge when you have a traditional business environment while almost everyone is moving towards the cloud. For one, you need to dedicate grueling hours to finish a task. Putting off the task will have a negative implication as it will result in wasting time. Workflow management is essential to accomplishing your business goals. How are you going to accomplish these goals if each task is delay-causing and time-consuming?

This is where cloud technology becomes more of a need than a want. Here are 4 reasons it is time to consider switching to cloud technology:

1. Improved workflow

Have you been stuck in an endless routine of paperwork? Do you have to cancel a meeting just because you have not finished generating a financial report? A constant pile of paperwork can be very stressful. You need to make sure that everything gets done accurately and in real-time. Manual processes can take hours to complete. Do you have all the time in the world to take care of all tasks in a day? Bookkeeping tasks involve storing receipts, keeping records, monitoring income and expenses and preparing reports. It takes a very dedicated bookkeeper to do all these. Cloud technology works side by side with the bookkeeper to save time and money. When you can capture images of your receipt, putting these files in your organisation’s bookkeeping system will be a breeze.

2. Easy access to your financial information

You need a regular update of your financial health. How would you be able to know about your business performance if you do not have access to the summary of your financial statements? Cloud technology lets you access financial information anytime, anywhere and on any device. All you need is an Internet connection to get instant access to essential bookkeeping files.

3. Know how much money you have

You will never know whether you can grow your business without determining how much money you have and where your money is going. Having knowledge of your true cash flow will help you make the right decisions. All of these will be possible once you embrace cloud technology.

4. Prevent fraud

You need total control of important financial information to find out if there is any fraudulent activity within your organisation. A simple oversight of fraudulent transactions can create a ripple effect on your business. Vigilance coupled with using cloud software will reduce the risk of fraud. It will also be easy for you to provide preventive measures when you see any irregularities before they affect the entire business performance.

What Can Virtual Bookkeepers Do For Your Small Business?

Technology has made it easy for many businesses to take care of the most essential task:bookkeeping. Many business owners dread preparing invoice and tracking expenses. However, when the time comes that you need to grow your business, you need a financial report to find out if your business is ready for expansion. Bookkeepers ensure the financial success of your business. Without a doubt, they make job much easier by avoiding bookkeeping in a shoebox. Aside from taking care of the financial aspect of your business, bookkeepers are also intended to provide sound advice when it comes to financial management.

One thing that concerns most business owners is the ability of workers to finish the task. Since bookkeeping demands time and accuracy, payroll management , invoice preparation and other critical bookkeeping tasks seem to be a challenge. This is why it is necessary to choose the bookkeeping software that will not only reduce time consuming processes but also streamline workflow.

With plenty of advance business technology options to choose from, it is difficult to determine the software that suits your business needs. There are some elements of bookkeeping that you must keep in mind so you can narrow down your selection.

Common features of bookkeeping software:

With the proliferation of virtual bookkeepers, more and more businesses have tapped into more advanced bookkeeping technology to stay relevant. Expense management requires regular monitoring so you will know if you still have enough cash flow to pay your bills or even to grow your business. Before you make a choice, you need to take the following features into account:

  • Data Integration: When essential data can be accessed by bookkeepers and business owners, delays are reduced and important work is done in a timely manner. With a seamless integration with the software of choice, you will be able to ensure that expense management is not overlooked. This feature must be part of your bookkeeping software package as it is essential to keep data available whenever, wherever.
  • Document Capture Capabilities:There are a number of ways you can obtain invoices, receipts and other important documents. They can be obtained from email, traditional mail and much more. Since keeping track of everything can be difficult, savvy business owners use their smartphone to capture essential information. The expense management software you should choose should have this mobile feature so it will be easier for you to snap a photo of bookkeeping documents.
  • Cloud technology: The need to remotely access key information is made possible by cloud technology. Aside from giving business owners peace of mind, software with cloud capabilities will also boost productivity. Documents and data are also available to review.

What Should Business Owners Expect In 2017?

Business owners have already witnessed a significant transformation in the industry and these changes will continue to shake up the system in 2017. Whether you are still embracing traditional bookkeeping systems or moving towards a more advanced approach, it is worth knowing the latest technological trends that will make day to day tasks much easier for business owners and bookkeeping professionals.

1. Many businesses will move to the cloud.

The cloud technology has made it possible for many businesses to become more fluid than ever. With its ability to provide instant access to users regardless of their location, it now seems easy to collaborate in just a few clicks. Back in the day when businesses rely on hard-drive, it was difficult to change your bookkeeper. With the emergence of cloud technology, switching becomes a breeze. However, moving to the cloud technology is not enough to make a difference. It is also important that your cloud technology provider is also reliable.

As business owners realise the benefits of moving to the cloud technology, bookkeeping professionals must also be flexible. Since this is already the age of the paperless, more and more businesses are expected to move to the cloud in 2017.  It is inexpensive and convenient and it provides more flexibility to business owners as they can access the information at any given time.

2. Social media will play an important role in collaboration.

It cannot be denied that social media has been influential to many people these days. Aside from sharing information, it is also a great venue for collaboration. If you are in the process of building your brand, social media will also be instrumental to raising brand awareness.

3. Artificial intelligence in the workplace

If you have a small business, artificial intelligence is going to be a practical application. It is no longer surprising that businesses rely on chat bots to serve customers. A bot is also used for collecting information as it saves time and it is able to assist prospects and existing customers with general queries.

4. Business owners will be served properly by bookkeeping professionals.

The year will bring efficiency and flexibility to clients as brainstorming becomes possible. While technology has previously paved the way for collaboration to be easier, these changes have no signs of slowing down. They create a positive impact on business owners as they can view income statement and balance sheet without worries. These changes to how bookkeepers work will continue to thrive. Some business owners choose to embrace it while others ignore it.

Is The Future Of Bookkeeping Still Bright?

In the age of paperless where digitisation is as precious as gold, has traditional bookkeeping lost its luster? When the thought of streamlining your bookkeeping processes by going digital, it is easy to cringe at the thought that you will no longer need traditional bookkeepers. These days, more and more businesses are moving towards the cloud because of the benefits they reap from it. Sure it has its own flaws, but the range of benefits still outweighs them.

However, not all companies are ready to embrace cloud technology. There is still a small fraction of businesses more comfortable in using bookkeeping systems the old fashion way. Some business owners are also reluctant to learn about the modern advances in technology that they prefer to outsource the job to someone.

Even if you have not used cloud-based software, this does not necessarily mean you should shy away from it. In fact, it can be a new opportunity for bookkeepers because it reduces errors and promotes accuracy. Even if going digital provides convenience to most business owners, bookkeepers are still required to ensure that essential business information is recorded correctly.

The Role of Bookkeepers in the Age of Paperless

Business owners may have the tendency to join the digital bandwagon without thinking about its implications. While cloud accounting software may sound promising, it does not mean you should completely eliminate bookkeepers from the process. Bookkeepers are not just meant to carry out simple data entry, but clients may view things from a different perspective. As a bookkeeper, it is important to know the client’s pain points to find out how both of you can benefit from cloud technology.

Bookkeepers need to demonstrate how cloud accounting software works. They should also explain to business owners how cost-effective it is to hire bookkeepers instead of doing the process themselves. Training is required to understand the system. There are bookkeeping intricacies that a business owner may need to learn.

How Can Bookkeepers Survive?

  • Learn new skills that will enable you to adapt the changes. Start building on your IT skills and find out how you can learn about networking, solutions and other strategies as they can also be beneficial to your growth.
  • Get familiar with cloud accounting software by watching online training, attending events and attending local training sessions. It is also going to be a huge help if you are going to use the technology yourself.  This way, you will be able to know how each feature works.

 

How To Efficiently Move Your Business To The Cloud

Cloud solutions provide better mobility and easier collaboration.

Moving your business to the cloud can change the way you work. Aside from automating some repetitive and time-consuming tasks, collaborating with clients will also be easier. In the digital age, you need to adopt the changes in technology as they enable you to thrive in the long term.

Although cloud solutions may be completely new to you especially if you have been used to a traditional bookkeeping practice, the mere fact that you can boost productivity and get things done are great reasons for making the switch. When it comes to embracing cloud solutions, it is important that everyone in your workplace gets used to an online environment. Adoption should start with knowing what a cloud solution really is.

What is cloud solution?

Almost everyone has tapped into cloud technology. You might already be using it without realising it. Some examples of cloud technology include ShareFile, Dropbox and Microsoft Office 365. These systems allow you to access your data anytime, anywhere and from any device.

Cloud solutions for bookkeepers work in a similar way. You can even think of it as normal bookkeeping software except that the data is stored securely. Cloud technology uses cloud storage so you can maintain access to the data in the event your computer crashes. Whether you wish to access the data from a laptop or a smartphone, cloud technology will provide you access.

1. Hands-on experience is your best teacher

You will never know how cloud technology works unless you decide to learn the ropes. Sure, it can be challenging considering the fact that you came from a traditional environment, but this does not mean you will remain alienated by cloud technology. Most cloud software providers offer a free trial. Ask yourself about the difference between traditional and cloud-based bookkeeping. Find out if you can really do things in a different way. Knowing the plus points of cloud solutions will help you ease your way into using it and understand its benefits.

2. Introduce it to employees

Once you have fully embraced cloud technology, the next step to take is to roll it out to your employees. However, you have to keep in mind that not all employees will be ready for the migration process. Provide training to make employees as comfortable as possible with the changes.

Remember that learning does not take place overnight, but this doe s not mean you cannot succeed in adopting cloud technology, you just need to keep an open mind.

Are These Cloud Accounting Myths Holding You Back From Using Cloud-Based Software

Let’s face it, it is rather safer to stay within your comfort zone than tread upon an unfamiliar territory. After all, old habit dies hard. However, technology constantly evolves and the first thing that comes to mind when talking about it is cloud. Although using cloud-based software is an innovative way to handle your bookkeeping and accounting tasks, it is still frowned upon by traditional bookkeepers for fear of becoming a hapless victim of new technology. While there are enthusiasts who are drawn to new approach, making the switch may require more than just changing technology, it should start with changing mindset. Here are some common cloud accounting myths debunked.

Myth #1: Cloud exposes data to hackers because it is online.

It is necessary for every business owner to ensure that classified information is stored safely. Some say that cloud makes data prone to breaches and attacks because it is online. The first thing you have to keep in mind to avoid security threats is to check the cloud service provider’s options and features. No two cloud accounting services are created equal so you need to take your time in searching for the service which has increased level of security.

Myth# 2: Cloud-based software is merely marketing hype.

Due to the proliferation of cloud technology, many skeptics dub it as marketing hype. If you are going to check the benefits of cloud accounting, you will realise that it has indeed lived up to its hype. With its ability to store and integrate data, it becomes a valuable collaborative tool for increasing productivity and reducing manual tasks. If you to gain an accurate overview of your cashflow, you can always rely on cloud-based accounting software to update your information. Many business owners are already investing a vast amount of money in order to improve their cloud infrastructure because of its long term benefits.

Myth #3: Cloud-based accounting software is only intended for storing data.

Cloud accounting is not specifically designed for storing information because it can also provide a different approach to collaboration. In the past, it seems challenging to retrieve information critical to decision-making if you rely on spreadsheets. You are not 100% confident that the data you obtained guarantees accuracy. Anything that is stored in the cloud infrastructure can be updated regardless of your location. Even if you decide to check your financial data in the middle of the night, time is not going to be an issue. It saves you from being chained to your desk to manage a bookkeeping or accounting task.