5 ways technology has changed small business bookkeeping
Vania Wang • October 8, 2020
5 ways technology has changed small business bookkeeping
Small business accounting has rapidly changed over the past decade thanks to the exponential development in technology. Access to advanced software that can carry out complex functions and interconnected technology has made bookkeeping and accounting easier, efficient and accessible. Organising financial data, analysing it and measuring your business progress has never been easier.
Here are 5 ways technology has changed small business bookkeeping.
Cloud accounting
The advent of cloud-based accounting systems has streamlined bookkeeping. You no longer have to install accounting software on your computer. Simply sign up and begin bookkeeping.
Today’s cloud accounting programmes boast an array of features including payroll, collection and the ability to connect your bank accounts. What’s more, these programmes are designed for efficiency and productivity whilst adhering to all applicable bookkeeping and accounting guidelines.
Mobile accounting
Cloud computing and virtual technology have transformed the way bookkeeping is done. There are a range of mobile apps for accounting functions. Here are some of the tasks you can handle using your mobile device:
• Capture receipts
• Create and send invoices
• Gather signatures
• Create expense claims
Your accountant does not have to visit your office to access the records. No matter the time of the day or where they are, they can access the data instantly. Physical location is no longer a barrier. Accounting and bookkeeping has gone truly mobile!
Real time updates
Business reporting is an important part of any business. It helps in making important decisions and aids in auditing aspects of operating a business. However, given the complexity of bookkeeping and accounting
processes, reports may not be available readily.
However, all that has changed with technology. Today’s bookkeeping platforms boast real-time reporting and data updates. When you receive a payment, your bank notifies the bookkeeper (via email, text message or even online banking), and the payment is recorded. The same holds true whether you make a sale or accrue an expense.
Streamlined processes
Bookkeeping is no more complex and involved process of the past. Integration between apps has streamlined the entire bookkeeping process. Integration with the bank gets rid of chasing the bank for the reconciliation process. By integrating payroll apps with the accounting software, you can save a lot of time and double-work.
Improved efficiency and security
Virtual bookkeeping makes things easier and effective for businesses. The virtual setup frees you up of hosting and safekeeping duties. The data, accounts and the information are easily accessible to the right people and safe from loss, theft or unauthorised modifications/changes.
Delegation, checks and reporting have become a lot more efficient and optimised. Numbers and figures are less prone to errors, mistakes or manipulation.
Conclusion
The rapid development in technologies has changed the way businesses do bookkeeping and accounting, and that’s an undeniable fact. There are many other benefits of virtual accounting and bookkeeping. Tax time becomes stress-free when your records are efficiently organised. Not to mention the money you save by getting rid of double-work and errors.
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