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benefits start-up can redeem from accounting

Benefits Startups Can Redeem in Accounting & Bookkeeping

What are the benefits startups can redeem in accounting? 

Warren Buffet once said, “Accounting is the language of business.” 

Now suppose Mr. XYZ starts a company. He has the funds to run his startup. Also, a robust business plan with sound research and strategy is done. But, he is not aware of the language of business. In simple words, he is unaware of the benefits accounting can redeem. To our surprise, several entrepreneurs and business owners like Mr. XYZ. Around 60% of small-business owners feel they are not knowledgeable about accounting and finance. 

What is accounting?

A company needs to keep track of all the expenses and income. In accounting, you need to maintain records of all financial transactions. Eventually, it leads to sound cash flow management. Accounting starts with drafting a strategic budget. Secondly, you develop a bookkeeping system. Then, you create a trustworthy payment gateway. After which, you set up a payroll system.

Last but not least, you prepare financial statements. It shows an accurate picture of your business’s financial health. Accounting holds much more than the before stated. Therefore, we are unfolding the benefits that accounting has in store for startups. 

Free Woman in Black Tank Top Writing on White Paper Stock Photo

Why is accounting vital for your startup? 

1. Bookkeeping

According to Wasp Barcode, around 21% of SMB owners admit not knowing enough about bookkeeping. But you must know bookkeeping leads to better and informed financial forecasting of a company. As a result, you can strategically draft your business plans. Secondly, you can access your business’s accurate accounts and cash flow. Eventually, this helps in receiving payment timely. Thirdly, the tedious nature of bookkeeping increases the chance of higher human errors. So many entrepreneurs have started looking to outsource their bookkeeping to experts. 

Outsourcing your bookkeeping will lead to secure & reliable financial health. They also take care of your monotonous task of bank reconciliation. Since monthly reconciliation keeps your books clean and brings countless benefits, maintain a clean general ledger and prepare accurate financial statements for your business. Lastly, an outsourcing accounting firm will provide unlimited consultations.

2. Payroll System

You need to set up a payroll system to pay your staff on time. You often miss the IRS deadlines and become unable to pay on time. It can lead to low morale and legal difficulties. That’s why you may require a payroll service provider. You outsource your payroll system to a payroll service provider. 

You can get the best payroll solution that fits your startup. Your payroll checks are printed on time. Additionally, a report of employees’ vacation, sick days, new hires, etc., is always ready. You don’t need to worry about the Free IRS and State tax reporting. Lastly, you get access to reports that the government agencies always require. A payroll service provider eases things for you. As a result, you spare more time for your primary operation. 

3. Cashflow Management

Cashflow management is one of the main benefits of accounting. While adequately maintaining books, you are also paving the way to positive cash flow. On the contrary, if books are not maintained accurately, it leads to a cash crisis. Due to the crisis, entrepreneurs shake hands with a cash management service provider. 

cashflow manager gains a depth of knowledge of your cash flow. They build an accurate cash flow projection. Plus, they provide cash collection acceleration techniques. They give the best-proven effective collection and payment policies as well. Finally, yet importantly, they help you get the maximum rate of return on your idle cash. 

4. QuickBooks

By now, you have read enough about outsourcing various services. But what’s that an accounting outsourcing firm possesses but a startup doesn’t. It’s nothing but accounting software. The cost of installing and updating accounting software is huge. Therefore, startups and small business owners outsource accounting and bookkeeping. There is various accounting software like- QuickBooks, FreshBooks, Xero, etc. 

QuickBooks is the ideal business accounting software for small to mid-sized business owners. Primarily, it saves time on bookkeeping and paperwork by automating the tasks. Secondly, it generate vital financial reports. Thirdly, QuickBooks can be tailored as per your startup requirement. Lastly, a virtual accounting firm integrated with QuickBooks provides QuickBooks Training

If you are still looking for more reasons, click here to know why you must choose QuickBooks.

Conclusion

In a startup’s budding days, owners must face a host of problems. We at SKB Accounting help you kickstart and redeem the enormous benefits of accounting. The most significant benefit of shaking hands with us is that our estimates grow only with your startup’s growth. So, schedule a call with us now and get relief from the accounting stress. 

 

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How to keep your books cleaned?

How to keep your books balanced?

Accounting Tips for Small Businesses to Keep the Books Balance

 According to Wasp Barcode, around 21% of SMB owners admit not knowing enough about bookkeeping. If you belong to that 21%, you do not need to worry. We will give you a sneak peek at how you can keep your books balanced.

Why keeping your books balanced is essential? 

Before jumping, let us understand the why. Accounting and bookkeeping are as crucial as the core operation of your company. Therefore maintaining balanced books becomes more important. Firstly balanced books lead to better and informed financial forecasting of a company. As a result, you can strategically draft your business plans. Secondly, you get access to your business’s accurate accounts and cash flow. Eventually, this helps in receiving paying timely. Thirdly, the tedious nature of bookkeeping increases the chance of higher human errors. So, reviewing your books at regular intervals helps in identifying that errors. Also, it saves organizations from bigger financial blunders. Therefore, we present the best accounting tips for SMB owners to maintain balance and clean books. 

Tips to Balance your Books

  • Separate Personal and Business Accounts

Often new SMB owner or entrepreneurs don’t distinguish their personal and business accounts. If you are one of them, you might overlook the critical business transactions. Maintaining separate personal and business accounts makes it easier to determine your regular spending. This way, keeping books balanced becomes easier. Also, keeping a separate credit card for your business expenses separates personal expenses. 

  • Monthly Bank Reconciliation

Bank reconciliation requires you to compare the cash balance of your bank statement to that of the company’s records. Firstly you need to identify and highlight the difference between both statements. Secondly, you must ensure that all interest income and bank deposits are added. Thirdly, subtract the bank fees & service charges. Lastly, it would help if you calculated & compare the balance of both bank & company records. Monthly reconciliation keeps your books clean and brings countless benefits. All these recorded expenses help in tax savings. Also, it is cost-efficient and guards the business against fraud. 

  • Maintaining Clean General Ledger

The general ledger is the core of your company’s financial records. These records constitute the central “books” of your system. Since every transaction flows through the general ledger, a problem with your general ledger throws off all your books.

Reviewing your general ledger system regularly allows you to hunt down discrepancies such as double billings or unrecorded payments. This way, you can fix the discrepancies in your books. As a result, your books are always accurate and balanced.

  • Clean up your books at regular intervals 

Cleaning up your books at regular intervals will help you identify and minimize errors in the beginning. Also, it deters employee fraud, embezzlement, theft & dishonest behavior against the business from both outside and inside. It will generate accurate amounts in account payable, account receivable, etc, which need to be considered before purchasing. Eventually, you make an effective decision as per the business’s financial health. With transparent cash flow, it allows you to track profit & company performance.

Additionally, it saves your business from accounting blackholes. Besides, it enhances your internal control as you are not required to rush to correct an incorrect accounting method or some mismatched balances.

  • Record Cash Expenses

Being an SMB owner, you need to track all expenses to keep your books balanced. Among the hustle-bustle of the business world, you may forget to track your cash expenses. But it’s essential to deduct them from your income at the time of taxes as it leads to accurate and enhanced financial analysis. So, it would be best if you always asked your vendor for invoices.

  •  Create a cash flow statement 

A cash flow statement gives the picture of your business’s cash inflow and outflow. Making a cash flow statement weekly or monthly can help you anticipate expenses and allocate income. Besides, it helps maintain optimum cash balance and even generate more cash. Moreover, it helps short-term planning for the business and leads to better cash flow management. 

  • Understand the difference between Invoices and Receipts

Invoices and receipts are often considered the same, and that’s where you go wrong. An invoice is a bill you send to the customer once they receive your service or goods. It consists detailed outline of all the deliverables. It helps you ensure that the payment is received timely. However, a receipt is a proof that a transaction occurred, and you provide the receipt to your customer once a transaction is complete. So to balance your books, you need to know the difference between the two.

  • Leverage Technology

Balancing or keeping books accurate requires time and concentration. It leads to irregular checking of the books. Besides, the process is complex and overwhelming for anyone. That’s why the whole world is leveraging technology. Installing a cloud-based software or app relieves you from the monotonous and tedious bookkeeping and accounting job. Still, you must not forget to keep track of receipts.

Conclusion

Why wait for tax season when you can outsource your bookkeeping service with us. Get on a call with us and get your books cleaned as we offer accounting and bookkeeping services integrated with Quickbooks

 

 

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Accounting tips for small business and start-ups

How to do accounting for small businesses?

Accounting tips for small businesses and start-ups

The most daunting task after founding your startup is kickstarting your accounting. Accounting is not as easy as falling off a log but keeping track of your expense, cash flow, and business transactions are essential, and it will pave the success path of your small business.

Challenges faced by startups in accounting

The challenges emerging in the budding days of a startup can be frightening. Firstly, you need to juggle multiple financial information like sales, debts, expenses, payroll, etc. Secondly, raising finances to fund your startup. Thirdly, choosing a payment method for employees. Lastly, prepare all financial statements and reports to get a clear picture of your business.

Stepwise Accounting Guide 101 for startups:

These challenges can be overcome and head start your accounting with the following steps:

  • Strategically Draft a Budget

Without a strategic business plan, you will sail without any end goal and make budgeting errors. It ensures that every decision you make aligns with your organizational goals. Firstly, it forecasts revenue, plans expenditure, allocates funds strategically, and communicates the purposes of the business. Secondly, it increases operational efficiency. Thirdly, you can make profits on seasonal business days with a strategic budget. Last but not least, it secures a business from a financial crisis by improving cash flow management.  

The process of drafting a business plan starts with analyzing the operating cost of the business, and it should consist of fixed, variable, one-time, and unexpected expenses. Next, you must list all the income sources and forecast your revenue to set realistic financial goals. Besides these, you need to accommodate interest and taxes while integrating all the departments—furthermore, draft estimates for financial statements. 

Here are budgeting tips to smoothly manage your finances.  

  • Develop a bookkeeping system

Bookkeeping begins with creating a new business account to split personal and business funds. Next, you need to unclutter and organize all the records in one place to save time. Furthermore, it would help if you track your expenses and account receivables. It’ll help you know exactly where to look in times of tax filling and making or receiving payments. Using an excel spreadsheet or software system such as Quickbooks enables you to keep track of all the expenses, revenue, and invoices in one place. 

As a business owner, you must keep an eye on your invoices to trace your billing. Bookkeeping is a tedious and time-consuming task, and therefore, many companies are outsourcing their bookkeeping to increase their productivity. U.S. outsourcing statistics also suggest that outsourcing in the financial services market will continue to rise by almost 7.5% annually. 

  • Create a trustworthy Payment Gateway

All your marketing and promotions could fail if you don’t have a payment gateway as it structures your company. With this step, you can start selling your product, and it impacts your sales, as now providing invoices portrays you as a trustworthy startup.  

With the growing business losing track of payments and invoices can be evident. So, it is advisable to integrate all electronic payment systems with your accounting software. It allows you to automate your accounting systems and books. Also, it saves time and adds accuracy by removing human errors from accounting records—automated tracking of payments in real-time increases cash flow and cuts labor costs. 

  • Manage Cashflow System

A study from Intuit stated that 61% of small businesses worldwide struggle with cash flow. An extended cash shortage is probably the worst nightmare of an SMB owner. The cash shortage often occurs due to the massive cash inflow and outflow gap. The first step is to analyze your inventory over time. It includes identifying the low-demand products and selling them at a discounted price. Also, it would help if you stopped buying any additional stock of such products. Instead, invest and buy the inventory giving high returns. 

If you deal in monthly payments, shift to getting paid right away once deliverables are given. It is best to open a business line of credit when your business credit score is good, and it also reduces the rejection risk of getting credit in the future. Instead of buying the various required equipment, you can lease them to minimize the short-term financial burden. Last but not least, make the best use of technology to create streamlined budgets and project cash flow with cloud-based software and apps. 

  • Set up payroll System

Either you have hired or plan to hire more employees as a startup. But have you thought about how you will pay them without delays? If no, then the answer is by setting up a payroll system. Initially, it would be best to determine how often you’ll pay employees. You must provide Form W-4 to identify withholdings to deduct tax from paychecks. Moreover, constantly be updated on the IRS deadlines to avoid penalties. 

In the United States, the IRS estimated that one out every three employers had been penalized for payroll. Billions of dollars in fines are collected each year. It can also destroy your hard-earned goodwill. So you can consider outsourcing your payroll to a cloud-based payroll service provider. It will give you freedom from security and software updates worries as they are transparent and accessible with 24*7 customer support.   

 Conclusion

Accounting, at times, can be exhausting and divert you from your end goal. That’s why we empower you with accurate accounting and bookkeeping services. A top-secret is that our estimates grow only with your startup’s growth. So, schedule a call with us now and get relief from the accounting stress. 

 

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Accounting Tips To Smoothly Run Your Restaurant

Accounting Tips for Success of Your Restaurant

5 Effective Accounting Tips To Smoothly Run Your Restaurant

Did you also start your own restaurant to follow your passion? 

Then you might have or are facing hurdles to manage your restaurant’s accounting. Don’t stress out pal because, as per a report, around 52% of restaurants face the challenge of high operation costs. 

A part of this high operating cost is your daily accounting. Restaurant accounting includes keeping a tab of the restaurant’s finances and drafting the budget accordingly. It is one of the indispensable aspects of running a restaurant.

Restaurant Accounting is different from other industries. Accurate and true finance reports are necessary for any business’s success. But for restaurants, it becomes more important as it relies on historical data and current records to forecast and make business decisions. The profit margins in the restaurants are very thin. Due to this reason, it becomes vital to pay attention to your accounting process. 

That’s why we bring you the 6  effective accounting tips to smoothly run your restaurant. 

  • Understand the language

If you wish to excel in your accounting game as strongly as in your kitchen, then you must learn the language of accounting. Everyone is not a trained accountant, that’s why you should start by understanding the basic terms. For instance, debit, credit, balance sheet, cash flow, prime cost, profit & loss, etc. In the beginning, it may feel heavy-duty. But, grasping their meaning, differences, and application in accounting will give you essential financial insights into your restaurant. However, if it feels onerous you can hire or outsource an accountant. 

  • Keep track of your Bookkeeping

Bookkeeping should be your new habit. Firstly, you can create a cash-flow projection to calculate the estimated revenue after expenses. It builds the foundation for your restaurant’s budget. Secondly, you must maintain regular financial records, for future IRS audits. You can consider buying restaurant bookkeeping software as well. Thirdly, as a restaurant owner, you must track your inventory on a weekly basis. Lastly, maintain a sound ratio of Cost of Goods Sold (COGS). It helps in setting better pricing and sales goals and making your restaurant profitable.

  • Choose the right point of sale system

You must invest in the right Point of Sale (POS) System. It will help you understand where your money is going. A POS system offers you a detailed analysis of your accounts via insightful infographics. However, many managers are unaware of the benefit of intertwined POS and accounting systems. Linking your POS system and accounting system helps you track inventory and labor costs, methods of payment, etc. There are various POS systems specifically designed to manage all facets of a restaurant. For instance, Toast POS, Lightspeed POS, ShopKeep, Square, etc. 

  • Get your restaurant insured

Understanding financial terms will definitely help you comprehend the accounting department. But, it is still exposed to financial troubles namely, property damage and lawsuits. For instance, your kitchen can catch fire and destroy the expensive equipment, or a customer slips on the restaurant’s wet floor and breaks his leg. Any of the instances could lead to financial calamity. Therefore, you must get your restaurant insured. Many small business insurances are available for restaurants such as commercial general liability and restaurant insurance. This insurance offers general liability and property damage coverages. You can consult an insurance agent to identify and secure the specific risk associated with your restaurant.

  • Consider Outsourcing your Payroll

Paying your employees always seems like child’s play. However, it includes deciding a pay period, number & type of payments, classifying employees & withholding taxes. With the host of tasks at hand to do, properly handling payroll becomes tough at times. Also in case of mistakes in payroll you have to beat liability issues and high penalty fees. Besides all of these, it’s hard to keep up with the dynamic workforce laws.  That’s why it is advisable to outsource your payroll system.

 

The restaurant industry varies from other industries in terms of profit margin. Eventually, with the success and popularity of your restaurant, accounting often gets tough. That’s why we empower you with accurate accounting and bookkeeping services. Not only this, we help you with payroll and strategic business planning while you focus on growing your restaurant. 

That’s why we bring you the 7 effective accounting tips to smoothly run your restaurant. 

 

-by Dipali  Nishad

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3 Safe Harbors for all the Landlords and Real Estate Investors

3 Safe Harbors for Landlords and Real Estate Investors 

3 Safe Harbors for all the Landlords and Real Estate Investors 

 

A safe harbor is a legal provision to eliminate legal or regulatory liability in certain situations, provided that certain conditions are met, Investopedia defined. These are rules by the Internal Revenue Service (IRS). Also, it eases the process of tax filings for eligible companies that generate smaller incomes. 

Like any other business owner, landlords and real estate investors wish to save dollars in taxes. Thereby, they simplify tax filing and save money with safe harbors. So, we are spilling the secret sauce of three safe harbors. Continue reading for a brief guide on how and when to use these safe harbors. 

 

De Minimis

The De Minimis Safe Harbor helps you to decrease expenses up to $2500 per invoice. This amount is double to $5000 with an applicable financial statement. These set limits determine whether a certain expense comes under the safe harbor. On contrary, the expenses falling outside the limits should probably be capitalized. Such limits are applicable to each invoice item and not in aggregate. 

However, some expenses exceeding the limit need not be capitalized. For instance, payment for acquiring and producing tangible property, exceeding the safe harbor limit. It excludes amounts paid for inventory and land. 

 

Routine Maintenance 

Routine maintenance safe harbor deals with the regular property maintenance expenses to be deductible regardless of the cost. This safe harbor has no annual dollar limit or income bar. Landlords spend regular and recurring expenditures to maintain efficient operating building conditions. There are two activities:

  1. Inspections, cleaning, and testing of building
  2. Replacement of the damages or worn parts 

Expenses under the first activity are deducted. But, the expenses under the second activity benefit the landlords. Earlier, landlords had to capitalize and depreciate expenses related to replacements. But now landlords can deduct it if it’s for keeping the property in ordinary working condition. 

However, note the first 10- year rule. As per this rule, any replacement is eligible as routine maintenance when it has been in service for 10 years. Once replaced, it must not be replaced within the next 10 years. 

 

Safe Harbor For Small Taxpayers (SHST)

The SHST let the landlords deduct their Schedule E annual expenses. These include repairs, improvements, and other costs for a rental building. To use this safe harbor landlords requires to maintain a record of all such annual expenses. There are various restrictions to check if expenses qualify or not. 

 

Rental Business Size Limitations

Landlords are restricted to use SHST if they exceed these limitations:

  • $I million limits on an unadjusted basis. Ex: land, improvements in land and cost segregation study identifies a personal property.
  • Annual expenses for repairs  & maintenance should not exceed $10000 or 2% of the buildings’ unadjusted basis.
  • For the last 3 tax years, landlords’ annual gross income should be less than $10MM

 

We at SKB Accounting offer detailed reports and analysis that will help you smoothly own and operate your rental property. Schedule a meeting with us now. 

 

-by Dipali Nishad

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Are you still thinking about outsourcing your Accounting & Bookkeeping?

-By Dipali Nishad for SKB Accounting

In the modern tech-driven world, outsourcing has been a hot trend.

U.S. outsourcing statistics suggest that outsourcing in the financial services market will continue to rise by almost 7.5% annually. The prime reason businesses outsource is cost reduction and increase the efficiency of the business.

Yet many small business owners try to manage all possible business operations in-house and don’t take advantage of the tremendous benefits of outsourcing an accounting & bookkeeping firm or a professional.

Here are the 5 ways which prove that outsourced accounting is a boon for your business:

  1. Get access to Latest Technologies: An outsourced accounting team is equipped with the latest software, accounting tools, and trends. You can enjoy up-to-date technologies at a price that suits your pocket. In addition, you get relieved from keeping a tab of new versions and updates. Moreover, you are not required to conduct the latest software training sessions for existing employees.
  2. Offers Actionable Financial Reports: Outsourced accounting firms examine your meticulous records and expenses. They give actionable financial reports like financial analysis, sales performance, ROI, monthly take home, and many more. The scrutinized financial report helps the senior management take informed decisions, generate & forecast sales estimates, and win a competitive edge in the industry. In addition, it helps you identify the potential clients, maximize business profitability, growth & expansion plans.
  3. No risk of Data Loss: These days accounting firms use the latest cloud-based software to access the data at one click from anywhere via the internet. Eventually, this means that your financial data is well protected and secured. They also examine the internal working of the company to increase productivity, enhance security, and secure assets from any possible fraud. Communication is done through entry emails which are hard to decode.
  4. Professional Assistance: Accounting firms have the best and expert professionals. They offer the best-fit solutions as per your company’s structure. Besides this, they provide actionable and valuable financial data which can be used strategically to grow your business. By outsourcing accounting, you can focus and scale up your business’s primary operation. On top of this, your competent employees don’t need to waste their talent in tedious desk jobs of inserting data.
  5. Time & Cost-Effective: Outsourcing accounting eliminates the cost and time involved in hiring and training an in-house accounting team. This team is your one-point contact for all queries and concerns. They are accountable to all the bookkeeping services. Therefore they identify and take charge of any errors. By eliminating all paperwork, you gain more time to build better customer and employee relationships. 

Reach out to us at: http://skb-accounting.com/ and outsource all your bookkeeping needs to us.

 

-by Dipali Nishad

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New Year Accounting Resolution for your Business

By Dipali Nishad for SKB Accounting

 

Each year, people all over the world have a new resolution to improve their mental health, physical health and career goals among many others. We are here to remind you of some business resolutions that you might not want to miss out on in 2022. 

  1. Reform Business & Marketing Plans: No business can stand out in the corporate world without an effective business and marketing plan. You must have stepped in your industry with one. However, with the passing time, it requires an update as your finances, business goals, competitors and range of a team change. If you wish to expand your business or start a new project, you may need to take a business loan. Revisiting your financial plan according to your changing requirements becomes crucial here.

    With the technology driven world, not riding on the latest marketing trends can cost a decline in your profits. You can analyse the success of the marketing plans you used last year and curate the best one for the new year. Brainstorming and designing marketing strategies with your team will give you an edge over competitors.
    Here are some marketing strategies that you shouldn’t miss out on.

  2. Take Professional’s Tax Planning Advice: Tax is complicated, that’s why a tax professional’s advice is essential. Tax planning is a legal process where a CPA or some other tax professional expert arranges and looks at all of your business expenses, revenues and activities to inform you of all the tax breaks or waivers available to you.  Tax advice is considerably a saving to your business. They help in restructuring your company finances to make them more tax-friendly.

  3. Clear unpaid Customer Invoices: Unpaid invoices directly affect your cash flow. If an invoice is unpaid for a very long time, don’t hesitate to give a gentle reminder. However, always verify that the invoice had clear details like due date, amount of invoice, customer’s name, course of action if the deadlines are missed, invoice is mailed/sent at correct address, etc.
  4. Prioritize Company Culture: The Alternative Board (TAB) stated in its survey of business owners that 86% of respondents say they believe company culture directly impacts productivity. As a small business owner, it’s important to understand and maintain good relations with employees. Your company culture influences individuals mindset, engagement and internal coherence in the actions of employees having diverse backgrounds.

    “Customers will never love a company until the employees love it first.” – Simon Sinek

    You can conduct surveys on an anonymous basis to get their take on the company culture. Then accordingly analyze and curate a culture that portrays your business value while also prioritizing the requirements of employees.

  5. Outsource Accounting Functions: In the last few years, did you ever feel that your employees or you are not able to make time for complex operations of the business due to in-house accounting?

    Yes, then outsourcing is your call.

    Outsourcing the accounting department can bring massive changes in your efficiency and performance because of the following reason:

  • Eliminates Cost & Time of Hiring & Training an in house accounting department
  • Get Expertise of Accountants and Professionals from different industries
  • Accounting firms use latest automation technologies which provides accuracy
  • Handles and gives best advices for your accounting department, so that you can focus on your primary operations

Schedule a meeting with us here to keep your business ahead of the curve this year! 

 

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Technological advancements in Accounting industry and their benefits for your business

By Anushka Menghwani for SKB Accounting

There have been dramatic changes in the Accounting Industry over time. With the continuous technological advancements, traditional ways of business functions are transforming.
Modern Accountants are not responsible for just tallying financial columns now; they act as Financial Managers of the Company. The principles of accounting have remained the same, but the technology adopted has changed drastically.

Before the automation of accounting functions, accountants did everything manually. There were higher occurrences of mistakes that would take hours to recalculate and reconcile. Accounting and bookkeeping were also much more of a cumbersome process than they are today.

Accountants have to adapt to changing technologies and upgrades continuously. E-business activities help integrate various business functions like sales, marketing, accounting, etc., resulting in streamlined processing. Cloud-based systems, ERP services, etc., make things available on a single portal with easy real-time access.

Here’s why you should take advantage of Virtual Accounting services and Automated Accounting:

  1. Modern Technology has simplified accounting for both accountants as well as clients. Accounting functions are now more streamlined with the integration of various software. These software tools help in better tracking and analysis of the financial transactions and data of any business.
  2. With Global digitization, the need for in-person communication and consultations has gone down. Clients can access real-time data whenever they want.
  3. Data crunching is now largely automated, allowing accountants to focus on and add value with other financial information vital to the businesses. They help managers formulate better business policies. After computerized accounting, the margin of error has been minimized. Instead of generating and recording the transactions, more focus can be put on their study and interpretation
  4. Automation does all the grunt work. It results in higher precision, accuracy and reduces the possibility of errors. It also saves time that an accountant would’ve spent doing work manually. By saving time, productivity increases.
  5. Gone are the days of accountants rummaging through storage rooms full of thousands of files. Now they access files virtually in seconds. All the information has become easy to categorize, store and filter through.

Technology has changed the present and future of Accounting. By moving to cloud-based accounting systems, businesses can save 30-70% on IT costs. Having virtual accountants and bookkeeping services also helps save costs and time.

Similarly, SKB Accounting helps you focus on running your business. You can give maximum time and attention to the core functions of your business while our experts take care of your accounting and bookkeeping needs. When you are relieved of the accounting functions being taken care of, your time and funds can be redirected towards the business’s operations.

Our bookkeeping services are designed to achieve accuracy and precision along with saving costs. We believe in acting as your partner, providing tailor-made services , which are not limited to just numbers.

Click here for more information on our Accounting and bookkeeping services.

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4 Benefits of virtual bookkeeping services

Bookkeeping functions are the base of a strong accounting foundation for any business. While Production, Distribution, Sales, and marketing can be the core functions of any business, Accounting and Bookkeeping require maximum precision and accuracy. The finances of the business need to be in good hands. By hiring a virtual bookkeeper, you can avail yourself of multiple benefits like reduced costs, increased productivity, and more time to focus on critical areas of the business.

More than 1/3rd of small businesses are outsourcing their bookkeeping functions and here’s why:-

  • Save on costs 

You can save on costs like Payroll, Employee Benefits, Training costs, and Recruiting expenses. Hiring an in-house bookkeeper involves considerable additional expenses, which can be avoided by hiring virtual bookkeeping services. You can spend these funds more on employees who support the core functions of your business and increase productivity.

  • Flexibility and Customized services

You can have your work done on time and according to your schedule. You can have quick access to all financial reports & analysis with specifics and key information about your business and its Financial Health according to your needs. SKB Accounting provides tailor-made services to suit your needs. You can customize the package of services you receive by adding payroll, Virtual CFO services, Accounts receivable, etc. or any of our other services. We can work with various software like Quickbooks, Xero, Buildium, etc

  • Proficient Technical Support

SKB Accounting offers professionals equipped with the latest technology and updated accounting tools. You get the latest technological support at all times without spending extra on technical updates. We are Quickbooks certified proadvisors and provide strategic insights with an unbiased perspective and professional experience of 25+ years.

  • Ehanced Efficiency

SKB Accounting helps you focus on running your business. You can give maximum time and attention to the core functions of your business while our experts take care of your accounting and bookkeeping needs. When you are relieved of the accounting functions being taken care of, your time and funds can be redirected towards the business’s operations.

Our bookkeeping services are designed to achieve accuracy and precision along with saving costs. We believe in acting as your partner, providing tailor-made services , which are not limited to just numbers.

Click here for more information on our Accounting and bookkeeping services.

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Future of cloud accounting

By Nivedita Verma for SKB accounting

What is cloud accounting?

Cloud accounting means storing, editing, and accessing your accounting and bookkeeping data over the internet or ‘in the cloud’ instead of a physical hard drive/computer.

The companies who use cloud accounting can login online to access their data securely through their cloud service provider or software. You can also integrate third party softwares with your core cloud accounting server to further increase your productivity and quality of work if your cloud accounting has an open Application Programming Interface.

What are the benefits of cloud accounting?

Before the cloud, accounting softwares were desktop-based, the application would be installed and run from the hard drive of your office desktop computer. This system needed constant software updates and periodical backing up of all the information.

Online accounting moves the whole accounting process to the cloud and improves it. Here are some perks of cloud accounting~

  1. Seamless collaboration: Cloud based accounting enables you to work with anyone who has access to your cloud software. You can edit documents together, share annotations and upload data, all in real time. This allows you to collaborate seamlessly with a co-worker or a client anytime remotely.
  2. Flexible: With cloud accounting softwares you can access your updated data anytime and anywhere. This allows the flow of information-based wise decisions and data analysis whenever needed. Your accountants can work-from-home or on a vacation if need be without stressing about being in the office to access the desktop.
  3. Scalability: The flexibility of cloud accounting helps the users to meet the growing demands of their business. You will have access to additional features, support, and storage immediately. Desktop-based softwares lack this feature and often fail to support the rapid business pace. If your cloud accounting software has an open API, you can also integrate with third party software
  4. Security: Cloud accounting means that your data is not stored in a physical device, instead it is backed up on one or more servers at a time. Your data is immune to corruption, destruction, or theft as long as you use a secure cloud accounting software.
    Other benefits of cloud accounting are automation of repetitive tasks, cost efficiency, and easy to learn user interface that comes with understandable tutorials.

The future potential of cloud accounting

As more and more businesses are moving towards cloud accounting software, the ones who have still not upgraded will have to catch up to remain competitive. Cloud accounting can never replace the whole job of accountants as some complex issues still need human understanding. The developments in the accounting sector have taken place due to the growth of the AI world and the benefits it provides to enhance the job of accountants. The future of accounting is safe and bright with the right technologies at play.

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