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Outsourced Accounting: Is Bookkeeping On The Decline?

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3 outsourcing solutions for your accounting


Technological advances of wearable computers, SaaS, and cloud computing is challenging the way most small business are conducing business operations. Years ago (and not too long ago!), for example, setting up an office required printers, servers, desktops, cabling, routers, phone stations, fax capabilities, etc. The costs were a major part of the start up costs.


Today, however, things have changed and so has the way we work. Office space is not a requirement for productivity anymore. We find that being “glued to a desk” is not a standard for getting more things done. Office commutes and Google Chat group meetings have become more accessible and agreeable to most CEO’s looking to stay abreast of the changes and demands in office operations.


Evolution in Bookkeeping

Bookkeeping has been affected directly by the invention of cloud computing.  However, what used to be activities that led to standard billable hours such as data-entry, bookkeeping and simple tax returns are now “outsourced” to accounting software. At LUXA, we provide services offered by major accounting product software providers such as Quickbooks. We find that taking over the simplicity of the books online can automate routine functions and eliminate the need for full-time billable hours – saving the small businesses owner in overhead costs.


Open Colleges published an article, The Future of Bookkeeping, and had this to say about the future of bookkeeping. “While most businesses will still require a bookkeeper to keep the books, bookkeeping will become a lot more than just data-entry, balancing bank ledgers and reconciling bank statements. These functions will certainly diminish in the coming years and may even become obsolete, thus the real cause for concern as these functions provided the most billable hours for bookkeepers.


While not necessarily great for bookkeepers afraid of the big change, adaptable bookkeepers and businesses will thrive in this new environment as those in the profession will now have more time to devote to adding extra value to their client’s business.” http://www.opencolleges.edu.au/careers/future-of-bookkeeping


3 reasons you should consider moving to outsourced accounting for your business:


1. Setting up your accounting software for growth

Considering that most small businesses have considerable growth goals, the areas of concern is in the set up. Making sure you have proper set up with line items to place expenses and income items in is essential for calculating profit margins, keeping records for taxes, and running accurate P&L’s and budgets.


2. Tax filing and Audit records

Again, growth compounds the complexity of your records and tax filing.  Of course, you will always have your personal return to contend with but in addition, you will need to file a Schedule C. Adding to that, you will need to make quarterly estimated tax payments, expedite W2’s and 1099’s at year end as well. Being efficient and accurate keeps from having to pay costly penalties and increase tax savings.


3. Managing your payroll

We can’t stress this enough. The complexity of your business also impacts your payroll complexity. Your employees are the foundation and core to your business. This is one area you want efficient to be a priority.

 

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