You’ve heard it time and time again: “Accurate bookkeeping is necessary for business health.” This isn’t meant to come off like a scolding finger-wag. Bookkeeping is simply a foundational aspect of running a business and should be regarded as such.
Bookkeeping and accounting are inherently different, though the two practices share similar implications. Accountants typically focus on preparing and processing statutory returns, giving advice on legal structures, and offering their expertise on general finances. Bookkeepers, on the other hand, tend to focus on maintaining financial organization, recording and reporting on business transactions, and providing detailed statements that reflect the health of a business. Bookkeepers have been expanding the scope of their expertise to include things like developing and reviewing internal business processes and employing other technologies like document management and inventory control to improve overall business efficiency as well. Bookkeepers also tend to have areas of specialization, which allows them to take more of a prescriptive approach when addressing your business needs.
When you work with a seasoned bookkeeper who knows the ins and outs of accounting software, you’re able to hand off the financial grind over to the pro and focus on doing what you do best – running your business. So, why should you care if your bookkeeper works with the latest accounting software technologies?
You get excellent insight into cashflow.
As a small business owner, your number one priority is cashflow. 96% of small businesses fail within 10 years because of financial illiteracy. Don’t become a statistic. Accounting software provides accurate visibility into the money coming in and out of your business. Your bookkeeper makes sure all transactions are properly sorted and reconciled, while taking other expenses like taxes, bills, and payroll into account to provide the most up-to-date numbers. Your bookkeeper can also advise on the best POS and payment systems that work for your business and provide even clearer insight into your total revenue. Working with a bookkeeper who can make sense of your cashflow not only sheds light on profit and margins, it allows for better business forecasting as well.
World-class reporting makes you more business savvy.
Financial reports give you a snapshot of your business health and progress. Accounting software that offers robust reporting capabilities informs your bookkeeper on your business financials. Perhaps you have specific questions regarding sales tax, inventory, or billable expenses. Or, maybe you need a quick cash summary. Accounting software allows your bookkeeper to customize reports, which makes it easier to get the answers you’re looking for. Additionally, real-time reporting lets your bookkeeper share exactly how your business is performing at any given time, so you don’t have to wait for monthly or quarterly financial reviews.
- Tight security keeps your financials safe.
These days, the most sophisticated accounting software live in the cloud – and the benefits that come with that are clear. Your bookkeeper can access your financial information anywhere, anytime. The cloud tends to prompt questions about security, though. Bookkeepers know that accounting software should come with multiple layers of protection, data encryption, and secure storing. The best part about working with a bookkeeper who is proficient in using accounting software is that you can task them with figuring out the systems.
Think about what your top three business strengths are. Is bookkeeping one of them? What about cloud accounting software? If you’re like most small business owners, the answer is probably a timid “no,” and that’s okay. You know that proper bookkeeping isn’t something you can ignore, but you also know that your expertise lies elsewhere. On top of that, time is scarce and spending days or even weeks to learn accounting software sounds daunting. Why not hire a professional who employs the latest software technologies and knows your industry inside out to manage your financials for you?