Monday, 24 Apr 2023
Bookkeeping has been a part of the commercial sector since the Mesopotamian civilisation. The service has been helping businesses retain their financial stability over long periods to operate successfully. The tradition has prevailed for generations and has taken several forms.
In the past few decades, it has completely transformed due to the advent of digital tools. Spending long hours in data entry has become a thing of the past. The current generation of bookkeepers relies on sophisticated tools that automate most processes. It frees up the time of the professionals and allows them to focus on business development and financial progress.
Thus, business owners must be aware of the upcoming futuristic trends in bookkeeping that can ease their workload and make the business more productive. Let us help you with a list of trends bookkeeping professionals must watch out for in 2023.
Cloud-based bookkeeping involves using web-based software to organise the data in a safe place. It automates all the monotonous and time-consuming tasks and streamlines records for easy accessibility of historical financial data. The business does not need paper bills and invoices and can collaborate with team members through the Internet.
Automation ensures error-free recordkeeping, invoicing, report generation, payroll management and stocktaking. Bookkeepers can use this tool to save time, energy and capital for the business. Thus, the system becomes highly efficient and allows the bookkeeper to invest time in analysis and informed decision-making.
Digitisation has made the lives of expert bookkeepers Melbourne easier, but it has also increased the risk of data theft because of online storage. The cybercrime rate has been rising in the country and poses a serious threat to the credibility of businesses. It can lead to financial loss and distrust among employees, clients and stakeholders.
Thus, bookkeeping departments need to boost their cyber security. They must train team members and authorised software users to implement cyber security measures, use strong passwords, and install multi-factor authentications. The cloud-based software ensures end-to-end encryption and checks malicious content regularly to maintain safety.
Artificial Intelligence (AI) is slowly becoming a part of every tech-based tool. It helps in the automation of recurring tasks without the risk of making mistakes. They produce 100% accurate records that are updated, reconciled and audited regularly for maximum preciseness.
AI is also getting utilised in accounting to identify patterns in the financial data gathered by the business. They can determine the problem areas and make changes to their budgeting and spending to rectify these weaknesses.
Financial decisions require research and analysis of the available financial data with the company. However, skimming and examining the vast amount of reports and records can be challenging. Thus, many bookkeepers have switched to big data technology that helps to make sense of enormous amounts of information.
It analyses data and provides the bookkeeper with insights that can be utilised to make improvements in the business processes. Entrepreneurs in Melbourne can use the information to decide the budget for product development and the latest marketing campaigns.
Cryptocurrency is a digital currency that has become highly popular in the past few years. Bitcoin is the most sought-after currency in the domain, followed by Ethereum and Tether. Cryptocurrency can be used for trading by businesses in Australia, but it is not regulated by the government. Still, one in every four Australians has acquired it, which showcases its wide usage.
Thus, bookkeepers in Melbourne need to up-skill and know how to perform accounting for cryptocurrency transactions. These specialised bookkeepers must also provide the business owner with investment advice and keep track of the trends in the crypto market.
Blockchain accounting has gained momentum in the past few years because of its ability simply recordkeeping and increase accuracy. It does not allow making changes to the records of transactions to maintain security and error-free books. Blockchain has become a preferred way of accounting because of increased transparency and in-built verification and validation processes.
Also, it helps to decentralise the ownership of the data. Anyone with access to the system can make entries in the ledger to update the books. All the records are maintained in blocks with a timestamp so they cannot be altered, which enhances data security.
The pandemic ensured that businesses started giving importance to remote working and outsourcing. It has become easier than ever for bookkeepers to complete their tasks from anywhere at any time. Real-time data access allows everyone to view the accounts to make any important decision.
Remote bookkeeping helps the business by cutting down the cost of the utilities and equipment used by the employees, such as desktops, laptops, infrastructure, office benefits, etc. It has also been identified that remote work increases productivity and utilisation of time spent travelling to work. Thus, the trend will continue in 2023.
Technology has been evolving rapidly and has completely revolutionised bookkeeping. The advanced tools have modernised processes to make them time-saving, efficient and cost-effective. Bookkeepers must adopt these trends to stay ahead of competitors in their field.
