How Technology Is Changing The Accounting And Bookkeeping Industry

In recent years, technology has become a vital component of the accounting and bookkeeping industry. The days of consistent on-site consulting have morphed into brief off-site meetings, with a plethora of additional software now serving as accompaniment for visibility and accountability of business tasks. Today’s technological advances have surpassed the thought of outdated financials, lack of real-time data, remote control sessions, and even basic desktop-based software. This innovation has occurred to the extent that it has left our offices here at Bookkeeper360 desolate of even a single file cabinet.

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The ability to leverage the latest in cloud-based technology through platforms — such as Xero’s accounting software — has completely transformed our firm and even the entire accounting and bookkeeping industry. For example, it has changed the way that business-to-business on-site consultations function, since frequent visits were often implied as a means of connection between client and bookkeeper. But since Xero is an accounting solutions software, it allows for bank feeds to become integrated in real time so that both bookkeeper and client can view, edit and add notes to statements as they please. Xero also enables bookkeepers to directly download transactions from a client’s bank and credit card financial accounts to compose the most accurate statements and invoices.

From Traditional Payroll To Full-Service Payroll

In addition to the general ledger, traditional payroll practices have also evolved into full-service payroll options through online services such as Gusto, formally known as ZenPayroll. This platform allows for automated pay runs and employee onboarding with data syncing directly to the Xero cloud in live time. This automated feature instantly saves the small business owner from the hassles that come with payroll complexities and other compliance matters. Gusto has made payroll software even more user-friendly because it gives users the ability to add personal notes on paystub.

The software also offers calendar reminders of important dates, events, birthdays, and anniversaries as a way of keeping business owners connected to their employees and outside contractors. This type of engagement enforces close employer-employee relationships in a much different way that may not have been possible if this form of virtual technology was nonexistent.

Another development is that payroll departments are not only operating within their sector: the entire management of employees and subcontractors both contribute to the most accurate pay-by-pay insurance quotes and invoices. I’ve seen many companies turn to these new platforms in order to ensure their success and implement new ways of conducting accounting and bookkeeping practices.

From Breaking Habits To Breaking The Bank: Mission Nutrition Case Study

Companies such as Mission Nutrition, a Long Island-based health and wellness company that my firm works with, focuses on delivering a unique experience to each of its customers. This company was the perfect candidate for new software like Xero, and Xero add-ons like Expensify, which offer other services that help businesses handle financials. Because of these tools, the company was able to simplify its booking and accounting, and therefore devote more time to growth. Adding Xero’s cloud-based technology into its bookkeeping methods helped Mission Nutrition expand its product line and enabled them to open a few brick-and-mortar retail locations.

Written by: Nicholas Pasquarosa Founder and CEO of Bookkeeper360

Source: Forbes