Disclaimer: Please note that this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
It's hard to imagine accounting without technology today. This is especially true for ecommerce companies because they manage tons of financial records from global sources. If you're a business owner, can you commit to frequent physical meetups and tons of paper files? Probably not, and you don't have to! You can now conduct these transactions online.
With the help of online accounting services, you only have to use your PC and mobile device to manage accounting documents. Furthermore, you can communicate effectively with team members and professionals without meeting in person! But as good as it may seem, technology can be downright overwhelming.
There are terminologies and systems that you may find difficult to understand, preventing you from making the most of its benefits. You don't want that, so let's figure out how to break these technological barriers and take advantage of online bookkeeping and accounting!
How Did Technology Transform the Accounting and Bookkeeping Industry?
Accounting, like any other field, can be challenging. You must be good with numbers to assess, manage, and properly communicate financial matters. Otherwise, it only increases the risk of various business problems.
But thanks to technology, you can find solutions to make accounting jobs easier. The birth of bookkeeping and accounting tools, for instance, boosts the ability and productivity of a financial team to accomplish various tasks. Whether it’s data entry or forecasting, bookkeepers and accountants can better secure and manage their data using these tools.
Here's a quick list of how technology transformed the accounting and bookkeeping industry:
- Automates tedious tasks like data entry, reducing the risk of human error.
- Provides quicker and easier financial data access for specific and effective analysis.
- Stores information using the cloud system so accountants and bookkeepers can work anywhere, anytime.
- Produces reliable tax software to streamline audits, improve accuracy, and ensure businesses comply with sales taxes.
- Allows social media to become a professional platform for online accountant services to engage and work closely with their clients.
Meanwhile, here are the latest technological trends in accounting you might want to keep a close eye on:
- Artificial Intelligence (AI) and Robotic Process Automation (RPA) - Many companies use and are looking to automate and make tasks easier through AI and RPA systems. These allow accountants to focus on more significant activities.
- Wellness Programs - Organizations are also incorporating workplace wellness perks for their employees. This is especially beneficial for highly stressful jobs such as bookkeeping and accounting.
- Cloud Computing - Nearly every business sector benefits from cloud technology. Storing huge and easily accessible data on a secure server is a huge breakthrough in accounting; no more piles of paper files and weak storage capacity!
- Agile Working - The bookkeeping and accounting workspace is transitioning from physical to remote workspaces. It offers a more flexible, affordable, and scalable approach to hiring, which is why you can hire online bookkeeping services now.
- Blockchain - This technology enabled cryptocurrencies. It's a distributed ledger that stores and records data accurately and securely. In the accounting department, blockchain can increase accountability and decrease inconsistencies.
- Social Media Marketing - These days, clients look at social media presence when seeking the best online bookkeeping services. They want an approachable and trustworthy firm, and social media engagement significantly contributes to that.
7 Ways to Break Technological Barriers and Leverage Online Accounting and Online Bookkeeping Services
Now you understand the significant role of technology in accounting. If you're planning to acquire accounting services online or find an online bookkeeping service, here's how you can make the most of them by breaking technological barriers.
1. Determine What It Does and Doesn't Do
First, set your expectations right. While technology offers superior benefits, that doesn't mean it's perfect. It can do many things, but not necessarily everything. So before using one, find out its strengths and weaknesses. What can it help you with, and what are its limitations?
If you want to use QuickBooks Online, for instance, determine its pros and cons. When is it most useful? Where does it fall short? You need to understand these things to utilize accounting technology best.
2. Determine Common Characteristics of Popular Tools
If you have difficulty deciding which accounting software to use, get some ideas from the most popular tools. What do they have in common, and are they beneficial for your business accounting needs? Sometimes, even the tool recommended by the most advanced bookkeeping services won't work simply because your business needs differ.
Examples of the key characteristics of good accounting software include user-friendliness, integration, data security, and automation features. Feel free to add more qualities to your list as you learn more about them.
3. Check if the Features Meet Your Needs
Now that you know what good accounting technology is, let's focus on your business needs this time. What tasks will require the assistance of a tool? What software features does your online accounting team need to accomplish tasks? Enumerate these and see if they align with the features of your prospect tool.
Perhaps you need a feature for tax filing services, monthly financial statements, HR and payroll services, average monthly expenses, cash flow statements, or monthly bookkeeping services. Check if there is a feature for a specific task and how much assistance it can provide.
4. Learn Different Ways to Communicate Effectively
The good thing about technology is that there are more ways to communicate. Instead of meeting in a physical place, you can just send a message to your chief financial officer via e-mail or chat. But, at the same time, it also puts a barrier and can easily cause misunderstandings. To avoid this, learn how to use messaging tools properly.
Check whether the accounting tool offers a messaging feature. If not, your online bookkeeping service or online accounting team will help you set up a convenient communicating platform. This way, you can leverage technology while keeping your communication in check, especially when it involves detailed financial reporting.
5. Consider How Much It Will Cost
Acquiring the most expensive accounting tool doesn't guarantee its usefulness. If you're a small business, it's especially important to be mindful of your budget when selecting accounting technology. Check if you'll have to pay a daily or monthly fee to use a particular tool, and if so, how it will affect your overall budget.
Look for an affordable online bookkeeping service that includes reliable tools in their packages. It seems too good to be true, but there are cost-effective technologies that provide not only basic bookkeeping services but also some advanced accounting features. This shows that pricing isn't everything in determining the efficiency of technology!
6. Keep Up With the Trends
Technology is ever-changing. You never know when a new accounting tool or system will be released. In that case, keep a closer look at the latest trends. This will help you avoid falling behind competitors and get immediate access to new and exciting innovations.
That said, the newest trend isn't always right for your business. Sometimes, it may appear pricey or irrelevant to your accounting and bookkeeping needs. For this reason, it's critical to analyze it first and avoid getting caught up in the excitement. Always consider how it can help you with your accounting tasks.
7. Work With Bookkeeping and Accounting Professionals
It's tough for one person to handle accounting tasks, bookkeeping data management, and trend analysis all at once. Sure, you can assign them to some of your employees—but what if they don't possess enough skills? Do not risk your company finances; work with a dedicated team of accountants or bookkeepers instead.
Many small business owners benefit from an outsourced accounting and bookkeeping service. Whether it's a dedicated accountant, dedicated finance expert, or professional service firms, the important thing is that your finances are in good hands. They'll handle most tasks in your stead, from providing financial reports and tax advice to tax filing services.
Final Thoughts
Many businesses use accounting technology, but few make the most of it. Some might not even understand a tool's significance or lack the knowledge to use it. As a result, it only ends up as another unnecessary expense in the company's arsenal.
Don't end up in the same situation and break technological barriers with outsourced accounting and online bookkeeping services! You can rely on their expertise and ensure that technology makes your financial management faster, easier, and more efficient.
Unloop's Online Bookkeeping Services: An Overview of Tools We Use
If you're seeking the best online bookkeeping and accounting services, why not consider Unloop while you're here? We are an affordable bookkeeping service slash online accounting services for a small business. We specialize and serve inventory and ecommerce companies in the US and Canada.
Here's a preview of some tools we use and include in our virtual bookkeeping services packages.
Quickbooks Online and Xero
We consider these two as the parents of accounting software; there isn't a single listicle that doesn't recommend them! If you decide to work with us, you can select between creating a Xero or QuickBooks online account. Otherwise, we won't take on clients with their own accounting software (and plan to continue with it.)
Taxjar
We also partner with Taxjar to help monitor your sales tax. It's a cloud computing platform that automates sales tax compliance. To be clear, Unloop won't file your taxes. We only do full-cycle bookkeeping, accounting, forecasting, AP, and payroll services. However, we can partner with CPA accounting firms and refer you to their tax services if necessary.
Book a call with us today!