Friday, 23 Sep 2022
Bookkeeping has transcended from the traditional manual labour era to the modern digitised version. It has been a paradigm shift for professionals in the field as they deal with new possibilities and innovations daily.
Technological advancements have given birth to new tools that have transformed operating procedures. Plenty of changes have taken place in the industry, making it a dynamic business function.
These tools have benefitted small businesses in Melbourne during the pandemic, which forced bookkeepers to work remotely. Thus, several new trends have come into the picture and have become essential for the development of an agile and progressive business. So, here is a list of the latest bookkeeping trends that every small business should know.
Online accounting software has been around for a while and has made the jobs of expert bookkeepers in Melbourne a lot easier. The advantage of using this tool is that it does not have to be installed in every system of the office but can be accessed through the cloud on any device.
Thus, all the authorised staff members can get real-time access to financial data and updates on their mobile phones, tablets, laptops and desktops. Cloud is not just a storage space. It has helped to centralise and streamline data across functions.
It has made processes efficient and productive through the automation of various tasks, including invoicing, generating financial reports, reconciling bank accounts, managing payroll, stocktaking, etc. It is needed by small businesses in Melbourne to reduce the time, money and effort spent on these activities.
With the consolidation of data and its structuring through accounting software, bookkeepers have become empowered with insightful information that helps to make financial projections accurately.
They are well-equipped to analyse data and draw inferences to evaluate the financial status of the business in the next quarter or holiday season. Financial forecasting, with the help of data analytics, allows businesses to assess their performance and prepare for upcoming challenges.
It helps the entrepreneur to make informed decisions related to expenses and investments. Thus, businesses in Melbourne can better utilise their resources and eliminate processes that do not yield any returns.
At present, small businesses in Melbourne use a double-entry accounting system that maintains the accuracy of the ledger. They have to maintain their own ledgers to record every transaction.
However, with blockchain, they can put the transaction records in a joint register, which reduces the expense of reconciling ledgers and conducting expensive audits. The distributed ledger technology ensures complete accuracy and security of the data with the help of public witnesses known as miners.
Also, blockchain has eliminated the risk of falsifying or altering digital receipts because of its decentralised feature. Thus, auditing has become a breeze, and there is no need to go through paper-based receipts.
Artificial Intelligence (AI) and machine learning have begun a disruptive transformation across business functions, such as customer relationship management and marketing. It is now making its way into the financial domain because of the need for automation of time-consuming data-entry tasks.
From procurement to offering chatbot support and cash flow forecasting, AI can prove beneficial for all financial functions. With AI, machines record and process the numbers to make sense of them and generate financial reports.
All the purchase orders, accounts payable and receivable can be created through machines without human involvement. They process an enormous amount of data within minutes and identify inaccuracies and errors to maintain flawless books.
ERP or Enterprise Resource Planning systems offer tools that help with the financial management of small and large businesses in Melbourne. These are similar to accounting software that helps centralise financial data and maintain security.
These provide timely reports and analytical insights and aid in automating bookkeeping processes. The ERP system helps to manage cash flow and do budgeting for the next quarter. It aids in allocating funds for various processes and ensures timely bill payments and salary credits in the accounts of the employees.
Mobile accounting has become common among bookkeepers in Melbourne because of its benefit of working remotely. They can simply take a picture of the receipt and upload it using their smartphones without hassles.
All the data can be accessed from the phone, so they can pull out information even when they are not in the office or are visiting a supplier or vendor for a meeting.
Besides allowing bookkeepers to work on the go and save time, mobile accounting has helped small businesses in Melbourne to go paperless. It has increased the output of the accounting department because they are not wasting time and have all the information at their fingertips.
Small businesses have to be cautious about expenses and budgeting. They are prone to financial challenges because they have a tiny share in the highly competitive marketplace of Melbourne. Thus, adopting the latest bookkeeping trends helps them to stay ahead and leverage the best possible resources for high productivity.
