Ten years ago the accounting landscape was completely different than it is today. With the advent of the CLOUD, there has been a complete change in the way micro and small business think about handling their bookkeeping and accounting needs. What has probably changed how business’ operate even more are smart phones and tables. These portable devices are letting more and more business owners operate their business from anywhere they are at.
Many business are used to the traditional accounting practices. They look like this:
1) They have in house software installed on a local machines connected thru a LAN and possibly on services. The initial investment in this technology was significant and the ongoing maintenance costs are high.
2) There is a paper based office. Information transfer between small business and any outside accountant is cumbersome. Files are put on thumb drives and mailed, accounts have to go onsite, reports are emailed and all records are on paper.
3) Communication is slow and during business hours. It is mostly in person or by phone. Email is also used.
4) The primary utility of the accountant is to prepare taxes year end. The small business is typically responsible for the bookkeeping and they analyze the financial reports to varying degrees of competence.
It is time to change. With the 100’s of SAAS Cloud based software options available to small businesses, every small business should be looking for a more efficient accounting partner. While tax mater proficiency is still important, knowing how to integrate financial technology to enhance a business’ efficiency is far more important. Lets take a look at what a modern technology firm can do for your small business.
1) Host all accounting records securely in the CLOUD accessible from smartphones, tables and any computer with an internet connection. Say goodbye to paper.
2) Give their clients a real time portal with a dashboard so they can get the information they need when they need it from the location they are at.
3) Not just provide tax services. Include bookkeeping, technology integration, virtual CFO, payroll, financial analysis, and consulting services. Really partner with their clients to provide value which will effect the bottom line.
4) Invest heavily in knowing and learning cloud based technologies.
Change is coming to small business accounting. Are you ready for it?