It is a new year, and 2021 is an opportunity to clean up from 2020 and set our sights on an organized accounting system for the new year. Small business owners are looking to choose a bookkeeping software for their business. Great idea, but let’s take this a step at a time.
There is a difference between hiring a bookkeeper and purchasing bookkeeping software. Bookkeepers perform bookkeeping tasks and typically use bookkeeping software as a tool or foundation for reporting. However, there are now systems that are a hybrid between software and humans, aka an online bookkeeper. These systems automate the work that the bookkeeper performs and can be integrated into bookkeeping software like QuickBooks. These systems can be used to not only automate tasks that a traditional bookkeeper would perform, but they can also safeguard and prevent fraud by eliminating human interaction and access to your financial accounts.
A bookkeeper performs the financial duties often performed by the business owner. This means the bookkeeper can access bank accounts, passwords, checks, and other important financial information. The importance of automated bookkeeping applications for a small business is straightforward yet critical. Bookkeeping applications provide the best combination of human accountants and automated tools. Automation ensures that tasks are performed consistently, securely, and on schedule.
A human bookkeeper requires processes transactions and performs financial tasks and therefore requires some level of interaction with the business owner. It could be emailing over bank statements or driving to the office to share receipts and checks. A bookkeeper can demand the owner’s time away from running the business and the need for interaction and supervision. A bookkeeper performs all the daily, weekly, and monthly financial transactions required by a company. The bookkeeper prepares a management report package containing financial reports and other helpful information, including:
Bookkeepers also perform other financially related tasks such as bank reconciliations, credit card reconciliation, sales tax calculation, payroll, budgeting, and tax preparation for annual tax returns.
In the purest sense, bookkeeping software provides small businesses with a system that can create and track financial transactions and post these transactions to a general ledger. From the general ledger, these systems create financial reports so that businesses can track their financial performance. New applications serve as automated platforms for bill payments, cash flow reporting, and transaction classifications now available and help automate the task that bookkeepers perform. Daily, monthly, and annual tasks can now be automated, culminating in monthly reconciliations, completed financial reports, and tax ready financials. Some of the benefits of automated bookkeeping applications are:
When searching for the best accounting software, be sure to look for software that will provide you with strong financial management and be integrated into other applications you use to manage your business. There is a wide array of software applications in the market, each with its strengths and weaknesses. To find the best accounting software for your business, be sure to look for software that can be integrated with your applications, have received good reviews, and provide you with the essential tools for running your business. The most used accounting software on the market is QuickBooks, and it offers a wide variety of integrated tools. It is also the choice of several online bookkeeper software applications that can be used to automate your bookkeeper’s work.
Implementing your software once you choose it should be reasonably straight forward. Most CPAs or bookkeepers can help you setup your software. You can also turn to automated bookkeeping services to help you decide which software application is best for you and is integrated with their automated bookkeeping tools. The tools available for small businesses today are typically very user friendly, and you will find them relatively easy to use. Most applications require no software installation as they are cloud-based, making them easy to set up and start using.
Automated bookkeeping applications implement bank-level security and financial controls, ensuring all aspects of the financial data and transaction processes are safe and secure. Schedule a demo of Expex and enjoy simple and easy bookkeeping, improved cash flow, and a healthier business.