Has your business gone digital yet? The whole world of bookkeeping and accounting is heading online, and if you haven’t made plans to advance with the times, now is a good time to consider it. As a result, it means the role of your bookkeeper is changing, and helping you to manage your finances more effectively.
More than just a trendy idea advanced by trailblazing accountants, a move to online bookkeeping is being encouraged by UK authorities such as HMRC and Companies House, who increasingly require digital reporting of company activities. Resist and you could find yourself effectively paying twice for certain financial book work to be carried out, in the near future.
What does this mean for you, if you have a small or large business? Simply, you need to engage with a bookkeeping service that understands online reporting, and that uses online bookkeeping software such as that available from brands including Xero and Sage. Not only will your bookkeeper be able to use such systems efficiently to your benefit, they can now offer a whole new level of expertise and support to clients.
Online bookkeeping exploits new technologies, such as keeping information in the cloud – making it accessible from anywhere, and available to anyone granted secure access. Other new technologies include software that can identify and log expenses from a smartphone photograph of a receipt – again, saving time and improving efficiency.
Using these new technologies means your bookkeeper can make an improved level of information available to you, more quickly. That can give you a real time image of how your business is doing, enabling you to make better business decisions, managing cashflow more effectively, for example.
Rather than spend hours reconciling accounting columns, your bookkeeper will now expect software to do this for you; with this task, their role is reduced to one of checking that systems are working without error. In return, your bookkeeper can become more of a business advisor, checking that payments from key clients are made in a timely fashion, and checking that debtors are not stacking up.
So, if you haven’t made the step yet, if you are still handing your bookkeeper a grocery bag of expense receipts every few months, it’s time to get on top of things. Speak to a bookkeeper such as Timewise about migrating your accounting and bookkeeping into the leading Xero package. They’ll hold your hand through the process, ensuring you are set up efficiently so that you’ll be far better placed in future. With a much improved picture of where your business has been, and where it is today, you’ll be far better placed to move it towards where you want to go.