How can Business Owners Simplify their Finance Processes?

Accountant and finance professionals play a crucial role in the success and growth of any business. However, in most companies, these critical resources are put into inefficient financial processes, making them of no use for high-value activities. Now, with digital solutions, you can automate core processes, such as invoicing and expenses management, to reduce inaccuracies and free up the finance department for more useful work.

Businesses need to utilize their resources as efficiently as possible to stay ahead in today's competitive world. Companies can make concerted efforts to streamline and optimize their finance processes to ensure their survival in the long run. Let's take a deep dive into some of the measures that you can take to make your financial processes faster and smarter.

Common Challenges Faced by Finance and Accounting Teams

Inefficiency 

When businesses rely on traditional systems to manage finances, they have to deal with a lot of useless information, making the entire process complicated than it should be. Further, inefficient reporting can hamper the productivity of the people in the finance department and lead to excessive stress. Then, there's also the factor of putting highly qualified and intelligent finance professionals into mundane, repetitive manual work. Such tasks can be automated, allowing companies to use their skilled staff for more productive and value-adding activities.

Fraud

Companies need to stay vigilant to prevent fraud. According to the Association of Certified Fraud Examiners, fraud led to corporate losses of $7 billion in 2018. Falsified billing details and obscure account payable systems, such as invoices not matching with expenses and tampering of checks, are some of the causes of fraud. Businesses can enhance the visibility and oversight of their operations by adopting a sturdy approval process that prevents individuals from signing off an invoice in isolation.

Difficulty in Handling Information

Accounting professionals have to deal with tons of information and documents, which can be crushing for your team. For businesses that rely on manual systems, storing, organizing, and managing these documents can be a real challenge. Additionally, you need to ensure that such information is available easily for later use to verify the information and on time of audits. The biggest challenges faced by people handling accounts payable include managing invoices received in a paper format and misplacing invoices.

Manual Errors

Manual data entry not only costs businesses a lot of time and resources but also lead to avoidable blunders that are preventable with the use of automated accounting solutions. Such errors can also make businesses susceptible to severe financial repercussions. With frequent human intervention in accounting tasks, you might be facing issues like underpaid or overpaid invoices that can be more problematic down the road.

Slow Approval Process

Manual approval processes can lead to a sluggish, complicated payment processing system, causing a delay in purchase order and late payments. The suppliers might be unhappy with delayed payments, resulting in penalties or even suspend your account. Further, existing and new suppliers might be reluctant to work with you and your company. Purchase order delays may hamper your schedule for product deployment, causing deferment and can have a long-term damaging impact on your company's reputation.

Measures to Enhance the Finance Process

Review the Current Process

First, examine your existing finance processes to identify the strengths and weaknesses of the system you are currently using. You will need to decide on issues that you want to tackle first and also Identify processes that are suited to be made efficient and cost-effective. Most importantly, give priority to the areas that offer maximum gains for your business and subsequently implement changes in other processes.

Engage Your Team

Before making any significant changes to your financial processes, you must get your team on board. Gain support from senior management and finance staff as well for the changes that you want to implement across your business. You can educate them about the improvements that will result from the changes and how it will make their jobs easier. Further, to improve finance processes, you can provide cross-functional training to your team members. You can help them gain a basic understanding of your accounting software and ways to automate finance workflows, freeing their time for other beneficial tasks.

Integrate Automation

You can improve efficiency and reduce the time spent on finance processes with automation. Start with tasks that required manual input and are most vulnerable to errors. Some of the routine labor-intensive tasks include purchase orders, expense reimbursement, invoice approval, and more. Additionally, take advantage of the customization settings offered by your automation solution to apply specific rules to each process.

Most leading accounting software helps you to easily integrate with other business tools to promote efficiency across departments and improve your finance processes.

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The role of Artificial Intelligence over the future of the Accounting Industry

Artificial intelligence systems are very effective and are rapidly improving. They provide outputs that can be extremely precise, replacing and, in some cases, far surpassing human efforts. They aren't replicating human intelligence though. We need to recognize the strengths and limitations of this different intelligence form and build an understanding of the best ways for people and computers.

Artificial Intelligence (AI) stretches computing capabilities to a whole new level. It lets systems predict and change accordingly – just like humans would. It allows computers to do machine-based learning, which was left to humans earlier. In the accounting profession, where people are dealing with rote tasks, AI could be a better replacement for the same.  

How AI is changing accounting? 

According to a 2017 study conducted by the Boston Consulting Group by surveying 3,000 executives, managers and analysts, 83% of respondents considered AI a priority for their business and strategy, while 63% of them feel that their company would start using AI within the next five years to reduce costs.

AI can also help with auditing, which gives auditors interpreting data results in very little time. It is capable of examining keywords and can take that information into the account while creating risk assessments and other reports. It can send out the questionable issues to a human for further attention while processing reports.

What can accountants plan for AI's advent?

Nearly a third of respondents in the Boston Consulting Group study said they believed that AI might do any of their current tasks. Getting a fear of AI, in the long run, won't benefit accountants – businesses should also adopt systems that will save them the most money. Instead, accountants should work to educate themselves about best practices in AI and how to integrate it into their daily tasks. Forms of AI learning can be completed with:

•  Attend skill learning seminars 
• Works on specialist projects
• Taking AI course
• Studying the impact of AI through autonomous learning 
• Enhanced data analysis efficiency

AI can process vast quantities of data, generate information, and identify more complicated data patterns than humans can do. However, an accountant must perceive a holistic view of the data, processes, and application of the information generated by machine learning. AI will understand, and become more intelligent by using feedback loops, AI can learn from errors automatically and immediately and become ever smarter over time. This technology also never forgets and can deepen the memory of the company. 

How AI is impacting Accounting Industries

Here are the following ways expressing how AI is changing Accounting industries:

Enhanced data analysis efficiency: AI can process vast quantities of data, generate information, and identify more complicated data patterns than humans can do. However, an accountant must perceive a holistic view of the data, processes, and application of the information generated by machine learning.

Reduce errors at a great level: Errors can go unnoticed in the conventional accounting and bookkeeping. Artificial intelligence can automatically detect errors and ensure that bookkeeping and accounting documents are always correct. Better business decisions are taken from correct bookkeeping, in real-time. 

AI work faster and smarter: AI will understand, and become more intelligent by using feedback loops, AI can learn from errors automatically and immediately and become ever smarter over time.

Monitoring compliance in real-time: Since AI can identify inaccuracies and flag incorrect or improper submissions in reports and statements, it offers accurate, fast data to accountants each time they produce a report, by improving productivity and giving clients peace of mind. That would be very tedious and time-consuming for humans to do. 

Heightened security: Cybersecurity is very crucial in the accounting sector and it is possible with the application of AI. Cybersecurity technology is able to securely access the stored data and protect the cloud with methods that are very complex for intruders. 

Different opportunities for accountants: By encouraging accountants to concentrate on higher-level activities that require human instinct and intuition, AI creates new career opportunities. Accountants and financial professionals who are willing to embrace the future of accounting will take on more important roles. 

Bearing in mind, with the fourth Industrial Revolution, accountants need to ensure that they embrace technology and artificial intelligence so that they can remain employable.

AI is strong, but its limits still hold. It can only analyze data: In a system, it cannot recognize bias or prejudice. Many times, a problem can include an ethical evaluation or guidelines that can't be reached simply by data analysis. If properly used, AI and human intelligence can work together to balance the weaknesses of each other, creating a streamlined and efficient process to help businesses move forward.

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What to Expect with Process Automation in Accounting and Finance

Process automation is a concept that many have heard but not everyone has a complete understanding of how it works. If you are someone willing to implement this concept because you have heard of it as a feature in the best cloud accounting software these days, know the concept now. 

The concept refers to a shift from human labor to machine technology and automating the entire process. It is a booming concept, and many have tried and tested this method and guess what? They are happy and successful. 

Case of Richard Thompson

Let us know about a real-life scenario that may be the first step for you in making the decision. 

A person named Richard Thompson was enthusiastic about starting his ice-cream shop. Initially, he sold in one locality with just one shop around. As his consumers started enjoying the taste of his ice-cream, they spread the word and made him popular. It was growing every day. In the first few days, it was easy for Richard to earn money and keep an account of what he had been earning. The problem arose when the number of shops increased. 

He had shops in nine localities in the next three years. This was a massive achievement. He knew nothing about finance and accounting. What he knew was hiring an accountant. He did hire a bookkeeper who sat at his head office but was that sufficient to keep all accounting details updated at all times. Richard then installed a business accounting software instead of hiring more bookkeepers. 

The Positive Impact

Without spending on more accountants, he successfully installed robotic process automation that helped his employee, the bookkeeper, to take care of all accounts of his 9 stores. The best part was that instead of paying an additional accountant every month, he now pays only one bookkeeper and gets his finance and accounting work done in the wink of an eye. 

Another major benefit is that being a cloud software, everything is available online. This makes it convenient for you, as an entrepreneur to keep a close eye on the spending and inventory needs. You can also access it from anywhere. Richard is both happy and successful now with a quick and smart decision. 

Are you inspired to make cloud accounting software a part of your business? Well, you are on the right path. Just a few tips to keep in mind. This will only make things better for you. 

Things to Keep in Mind:

1. Make a Budget: There are many process automation available in the market that can help you and your business in getting where you want to get. There won’t be a dearth of advice from people around you. No one can decide for you but you. Ensure you decide on the one that suits your pocket. However, don’t compromise on the best business accounting software. 

2. How to Use: You don’t want to have a product that you are not aware of the functionality. A demo is always necessary. Before buying the one that you have decided, make sure that you know how to use it. Checking with the experts will be the best way forward. They are just a phone call away. Why do you take the stress? Everyone is a beginner initially. 

3. Is it the Right Process Automation: Not all cloud software will have the right automation methodology included. You know your business functions better, so you choose the one that has the best automation suited for your business. You need a personalized experience and not a general one that can be a step back for your business. 

4. Educate the Employees: Most people feel that they will lose their job once automation has been included. That is not true. It is, therefore, important that you educate your employees about the usefulness and scope of the new cloud accounting software. This way, you will build a bridge between the employees and your stature. People who had been thinking to put down their papers may think again and take their decision back. 

Must-Know Information about Process Automation

As you have already made up your mind about installing the best software, you may want to know more about this tool. How it helps you and how it has evolved over the years may interest you further.

• With the inclusion of RPA or Robotic process automation, there has been a sudden drop in the cost of operation thereby making it a cost-effective step.
• There are lesser chances of human error that happened in high frequency whenever there was a human being doing a monotonous chore. With fewer errors, you gain more accountability and gain the confidence of clients across the globe.
• When you choose the best cloud accounting software, you take a plunge into the world of high visibility and trust. More and more clients start bestowing their trusts on you. That is a winner for you and takes you to a higher level.
• There is an immense growth rate in the future. RPA is definitely going to change the face of finance and accounting in the near future.
• Many financial institutions have been able to analyze future risks and take actions in due course of time. This helped save damages that could bring about losses.

With so much and more that one can get from the best cloud software such as HostBooks, one just can’t give a blind eye to the benefits. It is high time you follow what the leaders are following and set a mark for yourself. 

Many entrepreneurs have used HostBooks and praised its worth to the world. It is one of the most amazing software for startups and established businesses. Try it and see how you are not just increasing productivity but also retaining employees, who would otherwise have left your organization for monotonous and tedious chores. Be smart and wise to promote your business with the best software than compromise. 

Let the world follow you in the future! 

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CPAs Embracing Cloud Computing

Modern-day CPAs (certified public accountants) need the software to manage multiple processes such as:

Subscription management: Complex pricing and revenue generation require specialized software so that market needs are responded quicker than in the traditional setup.

Revenue recognition: This process differentiates between revenue and expenses. This is important to make your books reflect your profit and loss in real-time.  Revenue recognition will help the company to maintain a balance between the inflow and outflow

Project accounting: This is required for certified public accountants because it analyzes, tracks, and reports the financial results of a given project. It is a specialized form of bookkeeping that is offered by some companies.

Sales and use tax: The tax your client pays for sale, transfer or exchange of taxable goods. It is a trust tax. Use tax is sales on goods bought outside the state where you live. There are different rates of taxation in different states so the calculations are complex. This is where Cloud accounting solutions make accounting easier for bookkeepers.

Fixed assets: The value of fixed assets depreciates. It is calculated as an expense to cover the upkeep of the assets. Tax return laws apply in this case.

For all the needs discussed so far, Cloud accounting is the ideal solution. Some companies which provide Cloud accounting services give their client a chart that can be shared, is reusable and multi-dimensional. Such a process adds to your company’s output and makes time for the company to take on more clients. 

Such companies also provide Dashboard analytics which allows their clients’ immediate access to financial data across entities. Tool tracks analyze and display key performance indicators. It is very useful for bookkeepers in guiding clients towards good investments.

Terese and Max, an accountancy firm, has a great reputation. Lately, both partners noticed that some of their long-standing clients are moving their portfolios to other companies. Not many new clients approached them. In fact, a few of the staff members also exited the firm stating that the working conditions are tough. Both Terese and Max are not at all demanding employers. Moreover, their well-infrastructured office premise is centrally located. So, what could be the problem? They held one-on-one meetings with the staff. What emerged truly knocked them out of their comfort zone! The staff held the software, they were using, the main culprit. Terese and Max started looking for a shift to another better software solution. After talking to their IT people, it became clear that the firm was spending a lot of time and money on a cycle of maintenance. Every time they upgraded their software, there would be a break in their circuit integration.

They realized that they had been too busy to notice that their staff was struggling with old and outdated software. Their old software was detaining them down and was not efficient in dealing with the developments that had taken place since they had installed it when they began their startup.   

They did not choose any software which was declared as one-size-fits-all. They preferred to install cloud management solutions. This was a good option because integrating their present software with various applications and databases was proving to be very expensive. It would also disrupt the company’s working pattern. Cloud computing managed smooth integration without disrupting their systems.

Glitches and their solutions

How skillfully you solve the problems encountered by your company will have a lasting effect on the financial health of your company. Problems that are commonly faced by companies that continue to use outdated software are listed below:

• Restrained growth.
• Disconnection of systems and processes.
• Difficulty in tackling new business challenges and regulatory compliance.
• Struggling with keeping track of all your clients.

Problem #1: Restrained growth

Many companies do not upgrade their accounting systems because they do not have the IT resources for upgrading. Some of them are lax in this area because they lack financial resources. The new systems may not fit their requirements and they need to be customized. Customization is a time and money consuming process. Some companies go in for upgrades and find that the new process is disappointing because it does not fulfill every demand raised by the nature of their work. This is the main reason why companies prefer to continue with their old and problem-causing processes and systems.

Solution 

Some good software companies offer financial management resources to propose a solution to this. They offer a touch-free up-gradation that is set up and managed by the seller. Your company will not require the services of IT personnel.

Problem #2: Disconnection of systems and processes 

Joining and consolidating your present system with various databases and applications is expensive, and disruptive.

Solution 

Some of the reputed software companies provide pre-integrated systems so that your work is not disrupted. These systems are less expensive. These companies also offer the option of integrating Cloud applications in totality on site. They can also integrate these applications in a phased manner and can save you from holding back.

Problem #3: Difficulty in tackling new business challenges and regulatory compliances.

Old systems are not suited for dealing with new challenges and integrating them quickly. These were non-existent when your old software was installed. To install these compliances and challenges will prove time consuming and expensive. The functioning of this kind of software is also suspect.

Solution 

Cloud financial management solutions proposed by software companies can add new dimensions swiftly and make your software future-ready.

Their payment plans let you subscribe at your own need-based pace.

Problem #4: Struggling with keeping track of all your clients.

Your old accounting system probably gives out only financial reports. You would be forced to outsource the other needs of your client.

Solution 

With Cloud accounting, you can get instant reports and dashboard analysis. You can also track all the financial and statistical details that you need.

Conclusion

Modern finance and accounting processes demand issues be solved instantly. Transactions must be processed with greater efficiency, which only technology can render. 

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Tips to Consider Before Choosing The Accounting Software

If you have a business, it becomes an essential task to look into all the financial aspects to keep it going smoothly. Previously, accounting was one of the most time-consuming tasks with lots of paperwork that involved the ledger, lots of correction and recording essential financial data of the business. Apart from this, all these tasks can make you deviate from other important work. 

All these complications demand for the software that can keep up with the times and accomplish all your financial tasks. From making a record of the payments made, tracking all the expenses, handling invoices to giving an insight into your business needs and generating reports that help you analyze the performance of your business. 

Choosing the best accounting software that suits your business needs can be a bit challenging. But to simplify the whole process you can keep these 3 key points in mind before selecting the software. 

Cost: You need to have a clear picture regarding this as there are many options available in the market. Some are expensive and some are within your budget. But most importantly, the software should fulfill all the requirements of your business irrespective of the cost.

Usability: You need to decide who would use the software and is it user-friendly software? Apart from that, what can really serve your purpose- a cloud-based system, desktop software or a mobile app?

Features:  Features are a very important aspect of any software. You need to go for the one according to the purpose you want the software to fulfill such as tracking of inventory, generating reports, managing projects or any other.

Andeane Vexes shared her experience when she landed for the wrong software.  Before making the final purchase she did not pay heed to the above-mentioned points. But later she corrected herself by getting in-depth knowledge of the features of the software and buying HostBooks which fulfilled all her requirements. However, this cost her some extra bucks because of the mistake she did initially. 

Steps for selecting a software

Let’s run down through the list of steps you should follow to make a wiser decision.

Step #1: Discuss it with the employees 

It is always advisable to have a word with your employees regarding the requirements for the processes that need to be automated. Once you understand their needs it will become easy for you to make a choice.

Step #2: Know your budget

How much do you want to spend to buy the software? Answer to this can help you come up with the filtered options. However, prioritizing the requirements over the budget is always judicious.

Step #3: Search and shortlist the options

You can search for the various good software on the web and shortlist them according to their ratings and testimonials. Explore the market and research well before making a purchase. 

Step #4: Take a demo

Ask the software provider to schedule a demo. Clear your doubts by asking questions during the trial as it will help you make a better decision. 

Step #5: Take a trial test

It would always be wise to take a trial test before making the final purchase rather than beating around the bush. 

Important Factors To Be Kept In Mind

Cost of the Software: The cost of the accounting software varies according to the number of features it offers. Not necessarily, only the most expensive ones offer advanced features. Some out of various features that best accounting software offers are tracking of sales and expenses, recurring invoicing, tackling of project, past reminders, advanced reporting and many more. 

Online or offline: Depending on the requirement of the business you can go for online or offline software.  Though most of the businesses are investing in cloud-based software because of its multiple benefits yet, a small retail shop can opt for desktop-based offline software. 

Security of the data: If you are opting for offline software then there is no point taking security into consideration.  However, in the case of cloud-based software, security is not an issue as cloud computing runs on remote servers and are not system bound.

Multi-user access: Most of the cloud accounting software allows multiple users to have access to the system.  It allows them to control and access their data regardless of their location and time. Some systems allow multiple users to have access without paying any extra cost. On the other hand, others charge you subscription fee on a higher side if you wish to add users to the system apart from the accountant. 

Multi-business Support: In case you own more than one business and don’t want to buy and operate extra software, then you must explore the market for the software that allows multi-business support or else you will land up paying an extra cost for separate accounts. 

UI and complexity: It is not necessary that every business owner has an accounting background or possesses accounting fundamentals’ knowledge. So it becomes important that the person who will be using the software should be able to log in and browse through it easily.  Therefore, the software’s user interface should be simple and easily understandable for everyone. 

Check Scalability: At the entry-level, all software feels up to the mark but as time passes and the businesses grow, they may be unable to cope up with the progress. So the best option is to go for the business accounting software that comes with advanced features and would serve you in the future as well. 

It would be really smart of you to invest in an automated cloud accounting software that holds the above features to simplify your accounting.

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Digital Disruption In The Accounting Industry

Digital Transformation Summarized

Digital transformation refers to the move from physical to digital. It is the process of merging digital technologies into your existing business, modifying business processes and operations, and proffering value to your clients. It gives an opportunity to create a new business model that covers a variety of processes, changes, transactions and technological progression. It is a profound change approaching every nook and corner of your business.

Best 10 Advantages of Digital Transformation

1. Adds value to your business
2. Make your company’s operations more manageable and efficient
3. Makes your presence globally
4. Helps maintain a good clientele
5. Ensures transparency of data
6. Easy resource management
7. Reliable data
8. Helps in better decision making
9. Improves efficiency
10. Building the trust of the clients

Pillars of Digital Transformation- Holding Accounting Industry Upright

The accounting sector espoused the digital transformation to make the industry more productive in terms of revenue growth at a lesser cost and reducing payment losses due to clerical errors by handling complex data in a more efficient manner.

The three pillars to support the accounting industry upright to get potential and transformative results are:-

• Digitization
• Automation
• Data security

The companies have adopted digital business strategies using mobiles and artificial intelligence assisted methods and gained productivity. Let’s orbit around these pillars.

Pillar No. #1: Digitization

Digitization generally refers to the conversion of analog/physical data into digital/computer-readable format. It is about going paperless actually. With the increase in population and mass businesses, handling paperwork to track, save, or retrieve any record from the past or present is no less than a hail. It really is a disaster to work on papers in an accounting firm.

Going Digital is what can bring a halt to this baffling work. Digitizing data enables the ease of processing bulk data within a far lesser time than hitting your head in a cabinet full of papers. Moreover, digital data helps to make you globally present through the internet and thus enhances the probability of gaining customers. 

Let’s take a simple and very basic example of digitization. You might have hundreds of contacts in your phonebook. At any moment you would need to call a person, how much time would it take to retrieve a number from the phonebook? I guess just a fraction of second. Correct?

Let’s assume the same case in the other way. Searching for a phone number would certainly be time-consuming if you have to dig it out from a diary where you might have written.

This was just a basic thing in our life which apparently is wider within itself without our realization that how time-saving it is for us being digital

Apart from saving time, digitization gives you/your clients’ real-time data to work upon or make independent decisions.

Pillar No. #2 Automation

Automation, machine learning, and artificial intelligence are all the domains of digital transformation and now are becoming part of the accounting industry at lightning speed.

From small dispenser machines to self-driven cars everything around us is automated today. Automation in the accounting industry is helping resolve complexities and processes, making it easier to manage the company’s accounts and financial information.

The best accounting software enables you to automate the overall accounting business and help you access it anywhere, anytime.

This disruption was very necessary to hold the accounting industry upright as managing large clientele and volume data is beyond the reach of a man. This biggest evolution not only saves time but eases the processing by diminishing human labor. The man obviously tends to get weary.

Automation has given wings to fly high towards other more important tasks. Now making/receiving payments, data transfers, retrieving reports, auditing, invoice processing, taxation, etc. are no more complications. Automated accounting also ensures accuracy in every output.

Pillar No. 3: #Data Security

The most important pillar of the accounting industry is ensuring data security to a large number of clients who keep their trust on their accountants to process all the confidential and relevant information of the business and their finances as well.

Do you know why data security is a significant pillar among the other two? The reason is that- it is a matter of credence. No business can survive if its customers do not have trust. Having and maintaining that faith is what makes them connected and keep going in the long run.

Automation and artificial intelligence are consolidated to program such reliable software that ensures 100% data security. The cloud-based accounting software allows users to use the virtual and remote space to save their data. It gives them the benefit of accessing data on the go. It also facilitates data backup to restore it completely in case of a system crash or some other catastrophe. 

Coming to the conventional approach data security was an intricate and delicate task. As paperwork is not completely reliable and hence your information is at risk.

Conclusion 

The disruption is enormous and crucial as well.

These three pillars are like three legs of this tripod industry. It would be difficult to make this sector stand straight in this competitive era if any one of the three legs is missing. Like other industries/sectors, accounting tasks too, demands a value-based relationship with its respective clients to promote the growth of an organization. These pillars help you to deal with the entire possibility of crisis. Digitization, automation, and data security ensure the accounting industry to streamline the growth of an organization. Digital disruption has made accountants free to resolve and look after the other aspects of their job and make it hassle-free.  

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Did You Know about this Excellent Software for Start-up CPA Firms?

It is not an easy task to build a start-up. It needs courage and determination. More than that, one needs to have the right resources in place to make the task of a start-up easier. Heard of a new business getting on top of the success in just a day? Well, you may not have. You need manpower, an office, a salary system, inventory, and much more. If you have not decided on these aspects, you may not be on the right track. Considering the best businesses around us now, none of them were at the top in the beginning. They struggled and used the right technique whenever required.

Let us take an example of Timothy Dalton in New York.

He wanted to start an online business that will be available for consumers round the clock. When we say round the clock, Timothy meant 24/6. The support would be provided on all days but Sunday. Everyone wants to have some time off work on that day. It is quite understandable. She appointed several people on the job. The business was of selling online cupcakes. The first thing she did was hired one of the best baking professionals from her neighborhood so that the salary would not be too high. At the same time, the knowledge and skillset were considered because no compromise on the quality of the cupcakes would be accepted. The first step was taken. After that, she bought the basic things required for making the cupcakes and later appointed one person to deliver those cupcakes.

In total, Timothy appointed two people as of now. She was doing the job of meeting the requirements such as buying things from the supermarket and advertising door to door. The first set of order was delivered. The second set was delivered too. As word of mouth spread, people started ordering more and even the customer base increased. Maintenance of the incoming and outgoing of money was difficult to handle. Appointing someone to do the task would be on the higher side. Moreover, the person won’t be available every hour beyond the regular 9 to 6. Therefore, she invested in a software that could do all the calculations and also keep a track of the incomings and outgoings. This kept her on track with her finances.

It is not a very different story for CPA firms especially one that has shortly begun to do its core job. Despite the fact that you need some of the best people working for you, you need the best software that can make your job easier than ever and also let you focus on other tasks at hand. One of the software that you must invest in is HostBooks. It is that accounting software that will join the dots that you were confused about to deal with. More than that, you have other advantages of using it that you can’t ignore.

Features of HostBooks, the Best Cloud Accounting Software

1. Better Cloud Storage of Documents: Can you recall days when you left a job unfinished and the next day you had to begin from where you left? When you work on paper, it gets quite confusing on what needs to be done next. HostBooks has the best cloud integration that enables one to work from the paused segment and even find things easily.

2. Everything is Automated: You can automate your accounting tasks and do the job of reconciliation and managing client data in a few clicks. It is that simple and easy. The accounting software not just makes your firm perform better but also gains the trust of your employees.

3. The dashboard is your Bible: When you use a new smartphone, you wish that the operating system is so simple that you don’t have to read the manual to get things done. Similar is with this software. You sign in and enter the software to find a dashboard that shows everything that you can do. You need to choose the tab you want to work on and that is it.

4. Realtime Business Status: With manual work in place, one may not easily get to know where the business stands at that particular point. With HostBooks, one can get a detailed view of how the business is doing and what can be done better.

5. Top Industries use it: The software is used not just by CPA firms but in many established industries such as Construction, Consulting, E-Commerce, Hospitality, NGO, and Retail. Why would any industry use the software if someone else can do it? Well, you know the answer by now.

6. 24/6 Dedicated Support: One of the best-selling points of this software is its call support system. At any point while using this software, if you are stuck, you can call and get help instantly. They work six days a week that is Monday to Saturday. You have a companion beside you after you have purchased the software. They ensure that they don’t leave you blank after they have sold the product.

With all these features and more that are available, one can’t refuse to get this accounting software, especially, CPA firms. Accounting is one of the most difficult jobs in any industry and without getting the right number, no businesses have shown growth. Keep the numbers on your tips and let your business sore higher in no time.

Timothy used her money and time in the right place at the right time. It is your turn to follow the path and ensure that your startup is touching the zenith of success in a short span of time. With HostBooks, there is no looking back to the old and outdated ways of accounting. Work smarter and faster.

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Accounting Mistakes Cause Missed Opportunities

“To err is human but to forgive is divine” goes an old adage. This may hold true in other areas of life but accounting is unforgiving and mistakes can take your business on a downward spiral and ultimately to ruination.

Hence, It is best to be aware of and avoid the mistakes listed below which are common in small or medium-sized businesses.

Mistake #1: Ignoring the difference between cash flow and profit

Cash flow and profit are not synonyms. It seems so simple but it makes a big difference to the financial health of your enterprise.

Let’s understand this with an example.

BRAC and company landed an order for $75,000 to be completed in three months. The owner, Bard, happily posted $10,000 of this as profit never once giving thought to the possibility of delay in executing the order. Unfortunately, the unforeseen happened and the order took seven months and fifteen days to complete. The cost escalated and profit disappeared. This is mistake number one which should be avoided.

Mistake #2: Managing all of your accounting in-house

Small and medium-sized businesses often believe in “do-it-yourself” with reference to accounting. They believe that they can use accounting applications without help and become expert at accounting. The added incentive is the money, they believe, they save. But if that were true, the mistake which Brad made in posting profit before the project was completed, would not have happened.

It is not easy for an entrepreneur to know all the laws and by-laws when submitting tax returns. Therefore, accounting assistance is necessary. Mistakes that untrained people do not even notice and so let slip are caught by the eye of a professional accountant instantaneously. It is usually cheaper to pay an accountant.

Accounting firms will minutely examine your accounts. They will categorize your inflows and outflows correctly and manage your accounting department. They can offer sound advice on how to curtail expenditure.  You can also seek the advice of your accountants on where and how much to invest. Help on so many fronts will leave you free to plan the growth trajectory of your company and to embark on the path to success.

Mistake #3: Poor communication with your accountant

Having understood the value of an experienced accountant, Brad did appoint one. He did not trust him completely and would withhold information about some transactions. The result was a disaster.
Even if you are using accounting software, it is imperative to upload even the smallest expenditure or income, for your books to be balanced truly.

Mistake #4: Forgetting to record small transactions

Inexperienced businessmen often forget that even small transactions need to be accounted for. This is a mistake that could, in the long run, bury your business under a mound of debts. Whether you do your accounting yourself or with the help of accounting software or use the services of an accountant, this is a mistake to avoid at all costs and in all cases. Petty cash and small transactions are neither petty nor small.

Mistake #5: Not being serious about accounting

Accounting shouldn’t be taken lightly. Establishing a pattern of accounting is important. Categorizing your books is even more important. Every transaction, whether it is payment received from a client or a payment made to a supplier, should be diligently recorded for your accounting to be effective. Only effective accounting can give you the correct picture of the financial status of your company at any given point in time. An accurate picture of your company’s financial health is important while filing your tax returns or applying for a loan.

Your accounting becomes effective only if your assets and liabilities are correctly categorized. Your inflow and outflows of cash should also be categorized. A monthly check saves time. The earlier the mistakes are found out, the earlier can they be corrected.

Mistake #6: Budgeting projects

Enthusiastic entrepreneurs may jump into projects without clearly demarcating funds for each head under which the project has to be undertaken. This mistake could lead to the project overshooting the cost. Returns on investment will get wiped out or at best, be diminished. There will be no way to control spending on a particular segment of the project. The spending will be erratic and uncontrolled.

It will be difficult to know which segment excessive expenditure is being expended. When the project is budgeted under various categories, you will know the exact amount spent on each category and consequently, you could tweak the expenditure accordingly.
Conclusion

The adage, “A stitch in time saves nine”, can be well applied to accounting. Diligent accounting will keep your company going smoothly and full-throttle ahead without speed breakers of financial glitches.

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Key Accounting Trends to Embrace in 2019

Accounting has been facing drastic changes over the past year. Many ambiguous fields are now set to be clear. In fact, if the developments are set to grow at this rate, no one can anticipate the future. The technologies we could not even think of are now to be developed in the coming years. Yes, there are many matters in hand that need answers. In addition, there are a lot of issues that need to be dealt with and make sure developments do not hamper anyone. 

Stats say that by 2026 the accounting industry will be one of the strongest industries in the world. Automation and artificial intelligence technologies are about to change the sphere of accounting. Although they are faced with reluctance in the beginning, these changes seem inevitable. At the very least, the jobs will not be the same anymore. A major portion of desk jobs will not be needed anymore. Therefore, these developments are increasing the bar of this profession as well. It will require multiple skills and analysis techniques. 

For now, it’s 2019 we have to look forward to. The shift begins this year.

Trends that set the future of accounting

Now let us look at the trends that will create a buzz in the accounting business

1) Bank Data and its abilities

Bank data is about to become very user-friendly. Over the past few years, banking was a completely different job to do. Even for general users, going to a bank and standing in line was tedious. These practices are very hard for everyone. Now is not the same anymore. We have technical developments in the picture. This means it is time for banking to get as comfortable and secure as possible. Various advantages of this development are:

• Easy access to ledger records
• 24*7 bank statement availability
• Complete check on income
• Online transfers and handling without any external charges

Moreover, this is just the beginning. The changes that banks have anticipated to introduced are huge. In addition, do not worry about the job opportunities in question. They are as secure as they can be. The software that makes all this happen is not opera table on their own. Humans are required to run software and machines. Therefore, the job is the same, just deal with a computer instead of humans. 

It is time we change the banking structure in a never seen before manner.

2) Cloud technology to see the glory

Cloud has practically changed the course of technological developments over the years. People have been able to store anything on the cloud. Moreover, this has made storage very easy. Cloud has acted as a barrier to frauds. It has started protecting the accounts and users and their privacy. 

Accountants have also started making the most of it. They can access wide-ranging data with a single click. Reporting and analyzing them accordingly has been easier than ever. There are benefits of using the cloud as an accountant:

• There is a huge growth in revenue per annum. Some companies have seen over 15% growth in just a year.
• More than half of the big companies are using the cloud. Moreover, not just using them, they are dependent on them.
• Easier access to clients
• Labor costs are set to decrease, but profits will rise. 

Cloud is one of the biggest technological developments and everyone is ready to invest in it. 

A smart investor knows when to invest and where to invest. Cloud is the ideal investment trend.

3) Automation is the new innovation

Artificial intelligence is one of the main trends of 2019. Automation has enabled so many experiences to come to life. Over the past years, people have been handling so many tasks manually. Human skills are beyond manual labor. This was not addressed until automation was brought into the picture. Many problems have found various solutions in automation. 

Automation is a technological advancement, which artificially transmits commands. It is ensured that no errors will be faced when automation is being done. It is a consistent and more convenient all other methods. 

For example, imagine having to check on a year’s growth of a company. This growth needs to be specifically categorized under different subheads. Now imagine doing this manually without a computer. How many days will it take? A month or maybe more. However, with automation in the 

picture, it is about a few hours job and needs someone who knows how to use the software. 

Some key benefits being experienced by firms all over the world are: 

• Smarter employees
• More employment opportunities with regard to operating artificial intelligence soft wares
• Save time
• No more errors and faults
• Invites way more clients 

So yes, this trend is definitely the trend of the year!

4) Compliance 

2019 year has seen the revival of compliance. Advisory services have become more and more important. One thing that stays permanent is the need of advice. Now with artificial intelligence handling all other issues, compliance is a key to all your queries. Companies are now looking more and more advisory figures and making sure no mistake is made on their part.

Technological developments and compliance are becoming intertwined by the hour. Your company need not be a compliance-based working model. It can be a combination of both compliance and technology. 

Ability to change and adapt is what makes this trend the most flexible of them all.

5) Business intelligence tools

Business intelligence tools are the future of accounting. These tools consist of:

• Spotlight reporting
• Fathom
• Futrli

Business intelligence tools are all set to play a key role in changing the working pattern of accounting firms. With the use of these tools, the work will be simpler than ever, in fact, the accountants will be able to concentrate on analysis and strategic conclusions. 

Business intelligence tools are set to make business easier and spread it as vast as possible.

6) What more to look for

The above-discussed changes are just a few of the long list of developments in this sector. Other trends that have been gaining importance are:

• Blockchain Technology
• Client Experience
• Bookkeeping technology
• Cash-Flow consulting

There are many more trends set to put the foot in accounting technology this year. Some of these are being developed right now. We cannot say how many changes will be brought forth, but it is time we stay ready for them.

Embracing a change is much better than running away from it. The change will happen, no matter how scared you are. 

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