Accounting as we have known it is changing. In addition, the small business model is rapidly changing and the most successful small businesses may be the ones that embrace change.
In the past, accountants typically gave their clients monthly or quarterly compiled financial statements for some time period that was possibly several months old by the time it was issued. While the compiled financial statements contained valuable information about past operations, it wasn’t able to provide a snapshot of what was happening right now. Were there changes that needed to be made immediately to enhance profits and/or efficiency? How is cash flow? Have sales increased? Are fixed expenses up? These are questions you may have had that were not being answered through compiled financial statements. In addition, many times clients didn’t understand the information contained in the compiled financial statements, and therefore, didn’t use them for analytical purposes to identify strengths and weaknesses in their business operations.
With the advent of online accounting software and related applications, the accounting and bookkeeping functions for small businesses are changing. By using a program such as QuickBooks Online (QBO), most of the bookkeeping function of a small business can be automated. Bill payment can also be automated through the use of a program such as Bill.com. Even the task of retaining invoices can be automated by the use of a program such as Receipt Bank. All of these programs communicate with each other to keep your company’s books up-to-date, and with minimal effort by the company owner. The company is no longer dependent on a bookkeeper/employee to come to the office, pay the bills, enter the information into the software, file documents, and send the information to the accountant to compile financial statements. You and your accountant can even log into QBO together and look at your company’s books with real time information in order to make well-informed decisions. This evolution of small business accounting is here and happening right now.
Baldwin CPAs is ready and available to help implement this technology in your business. Since many programs such as QBO are in the cloud, you never have to maintain any software on your desktop. You are always using the most up to date program. NOW is the time for your business to embrace the future. Contact us at 1-866-287-9604 for more information about your outsourced accounting needs.
Posted by Janet Jackson Hill, CPA