Until a decade or two ago, small business bookkeeping had been using the same methods and ideology that had been around since the industrial revolution. But with the advent of the internet and other accounting related technology, bookkeeping has become an ever-shifting and advancing field. Perhaps you are a small business owner who does your own books, or you hire a CPA to help you. In either case, you should know about the latest bookkeeping trends in small business. Perhaps the system being used for your business’s accounting has become outdated. Let’s take a look at what’s new.
Artificial Intelligence For Small Business Bookkeeping
When it comes to artificial intelligence (AI) you may think of HAL 9000 plotting your demise but think of it more like R2D2, a friend there to help you in your bookkeeping. There is no need to be intimidated by the term AI; you are already using it every day and may not know it. If you have used the search engines Google or Bing, then you have used AI. The use of AI in your bookkeeping can notify you of things such as your numbers not adding up or an unpaid bill. It will do “paperwork” for you, which allows you or your bookkeeper more time to analyze your AR and AP. Websites such as Bill.Com or Melio use AI to sync with your accounting software and take on those time consuming menial tasks.
Small Business Bookkeeping is More Strategy Focused
The next trend on our list is directly connected to the last. With the continual advancement of accounting technology, it allows you as the bookkeeper or owner of a small business to focus on what your accounting data means. You can analyze your income and expenditures to devise a strategy to yield a greater return on investment, and to cut unneeded expense. In the past, a bookkeeper would have been more focused on processing the data rather than understanding what it meant. Now even with a small business, a bookkeeper can function more like a CFO than a secretary.
This trend is, unfortunately, one that is not a choice. In the last several months the pandemic has forced everyone to work from home, including bookkeepers. You should understand how Zoom and Skype work is essential because in many cases, it is the only way to have a meeting with all the stakeholders in your company’s finances. It also means using the previously discussed AI in your accounting can be a great benefit because it can gather data you are no longer able to access. If this trend will continue for months or years is anyone’s guess, but the use of technology to manage your company’s finances and virtual meetings are likely to continue even after everyone is back at the office.
Don’t Fall Behind
Without the stability of a work environment without things such as children playing or barking dogs to distract, you may be difficult to find at the moment. With this unfortunate fact in mind, it is vital that a bookkeeper focuses on the task and hand and doesn’t fall behind. Not keeping pace can turn a snowball of issues into an avalanche of them. Have the discipline to ignore distractions and keep up a steady pace.
To Sum Up
We are in a tumultuous time that does not afford any room for mistakes. Take advantage of new technology that can help you process data and stay connected with your company. Be sure to keep up with the latest trends; get to it today!