Over the past decade, 90% of small businesses have switched to outsourced bookkeeping. Now, the bookkeeping tasks are automated and done by professionals. Well, numbers speak, and statistics show that in-house accounting teams are outdated.
If we talk above all about NYC, there are 183,000 small businesses, according to the 2023 NYCEDC report. Well, no doubt these businesses need bookkeeping services. But do they have in-house accountants?
Let’s explore it all in this blog. Additionally, we will look into evolving trends, strategic planning, and technology trends. So, let’s begin!
The Evolution of Bookkeeping Services
Bookkeeping has been a concept since 3300–2000 BC. However, we will talk only about the last two decades. Considering how bookkeeping evolved from pen to software:
Stage 1: Record-Keeping via Pen and Paper
In the last decade, bookkeeping was done on paper. Expert accountants used to be hired to keep all the records of transactions. Although the system had multiple drawbacks and the process of record-keeping was time-consuming. Additionally, the data was more vulnerable to theft, loss, and destruction.
Stage 2: Record-Keeping on Excel
The main reason to shift from paper to Excel was to digitalize records. It helped minimize potential threats to data security and losses in mishaps. However, the system wasn’t foolproof. There were still threats to records, and managing them sheet by sheet was another headache.
Stage 3: Record-Keeping in the Quickbook
In recent years, Quickbooks, Xero, and Sage software were launched to make bookkeeping more easy. Although there is a need for specialized accounting professionals to maintain records on these softwares.
The system is evolved enough, though. In addition to that, bookkeeping will continue evolving. Its on us how we do strategic planning of records and how we manipulate data.
Key Strategic Insights Offered by Top Bookkeeping Services
When it comes to top bookkeeping services that offer strategic insights, count on us. The Tax King Service specialized in bookkeeping and accounting services. Well, these aren’t just words but qualities that we offer.
Curious to know about strategic planning and insights? It’s what we do, and it’s all what bookkeeping is about!
Financial Analysis:
Bookkeeping helps financial analysis, including forecasting outcomes, predicting trends in business, and other related stuff. Financial analysis helps you better understand your financial conditions.
Bookkeeping is often seen as a basic administrative task. However, it is a cornerstone of business. Helping in making better investments and outcome expected scenarios such as best case, worst case, and most likely.
In addition to that, financial analysis helps you work on ROA (return on assets). It will help you understand which asset will be profitable and which should be ditched.
Budgeting and Planning:
Budgeting and planning also come under bookkeeping services. A good bookkeeper is efficient in managing income, balance sheets, and expenses. Their strong data analysis and record-keeping skills help better manage the budget.
Furthermore, with bookkeeping services, you can get budget creation, budget planners, and a realistic approach to money management.
Moreover, bookkeeping services give you strategic insights about how your money is being utilized and the variance in expected and actual spends.
Cash Flow Management:
Bookkeeping services help businesses make informed financial decisions while investing or optimizing resources. They actively keep records of all cash inflows and outflows from a business. Not only to keep a record of these services but also to alarm for any upcoming costs and losses the company can indulge in.
Further, it identifies any glitches in payment systems that can hinder the cash flow. Additionally, these services can identify slow paying customers, potentially impacting the cash flow.
Tax Planning and Compliance:
One of the main reasons a good bookkeeping service is a must-have for your business is tax planning and compliance. Bookkeeping services mainly focus on record keeping, trend forecasting, and strategic planning services. Many services offer tax planning to minimize business tax liabilities.
Think of it as a value-added service that Tax King Services also offers.
Tax planning involves analyzing available cash flow recording. Checking for the available deductions and credits for business and working on tax preparation. Additionally, these services help in tax preparation and aiding the tax filing process.
Technology and Tools Enhancing Bookkeeping Services
Strategic planning also means better optimization of available resources. For instance, if you have an accountant that works on Excel sheets to keep records. It means you are missing out on the time benefits offered by software. Have an expert bookkeeper who knows software and utilizes it for time efficiency and work management.
There are multiple programs available on the market, and having trained professionals to work on these programs gives you time efficiency and better use of available resources.
Having an outsourced expert bookkeeping service means having a professional accountant who knows how to use this cutting-edge software for your benefit. This software plus expert resources is the perfect combo to keep your business running smoothly without any stress for cash flow or other related work.
Let’s see the benefits you can get from having a bookkeeping service that is up-to-date with technology and tools:
Resource efficiency:
Instead of having a whole new department in-house for bookkeeping, you can utilize a bookkeeping service. It will help you utilize technology in a better way to manage records. For instance, it’s easy to make reports with software rather than doing it yourself.
Better Visualization of Data:
Proactively working with bookkeeping tools gives you multiple ways to visualize and analyze data. As we all know, visual data such as graphs and charts allow better understanding as compared to palin written data. Utilizing a bookkeeping service, being aware of these tools can be beneficial for business.
Report Generation:
As data is more organized in software, it’s a snap to generate reports. You can proactively generate monthly, bimonthly, or even instant reports. It will not only benefit business to see where things are going but also help forecast future trends, cash flow records, and strategic planning of work.
Trend Prediction:
While it may not be the basic feature of tools and technologies available for bookkeeping services. But a combo of effective tools and quality bookkeeping services Bookkeeping becomes a piece of cake. There are also some softwares with built-in tools to predict future trends, but you can do it thriftily by using tools.
In a Nutshell:
Bookkeeping is beyond merely entering records in an Excel sheet. As a small business, the cost up front might look a lot. But believe it! It’s way better than having a full-time accountant in your office.
Bookkeeping outsourcing services offer you a wider room to try new ideas and strategically plan things up. Additionally, professional bookkeeping services offer you more than you might think. Consider the benefits of on-demand service, low cost as compared to in-house staff, free management, on-demand report generation, and expert advice.
With all this bundled together, you can boost your business to a new height. So, weigh everything, plan your business, and let a competent service provider handle the record-keeping and strategic planning work for you.
Common Tax Help Questions and Their Answers
1- What is Strategic Planning in Accounting?
- Strategic planning means analyzing financial data to make informed decisions about business directions. It helps in predicting future scenarios businesses might face and adjusting business decisions to make the most of them.
2- What is Record-Keeping?
- Record-keeping is a term used to describe the process of keeping all entries of transactions, including sales and purchases, in business. Almost all businesses need record-keeping services on a monthly basis. Basically, it’s essential for a business to keep a record of every transaction to better plan business growth.
3- What are the Steps of Record-Keeping?
The steps involved in record keeping are transaction records, journal records, posting to the ledger, and reconciliation to banks.
4- What are the Duties of a Bookkeeper?
Mainly, bookkeeper duties involve adding transaction records to software, strategic planning of records, and working on data to predict future scenarios. Additionally, bookkeepers work closely with tax preparers to provide requested records on time and help in the tax preparation process.
5- How are Technology and Tools Changing the Bookkeeping Industry?
Yes! Technology has tremendously changed the bookkeeping industry. Now the work is done in snaps that took more than a week in the last decade. There are softwares that make adding entries a piece of cake. Additionally, report creations also take no time due to these softwares. However, these tools need experience for bookkeepers to operate.
6- Are Outsourced Bookkeeping Services Worth Your Money?
Suppose you are a small business or have multiple income streams. It is worth spending some money on an outsourced bookkeeping service. This little amount will save you from a lot of taxes during tax season.
7- Which is the Most Important Feature of Bookkeeping?
The most important feature of bookkeeping is accuracy. It offers the most accurate data, which helps in further planning business, preparing taxes, and ensuring the overall health of business.
8- Who Needs Bookkeeping Services the Most?
Businesses need bookkeeping services the most. It helps them forecast business trends and get strategic insights and other important data from bookkeeping services.
9- Which One is the Best Company to Offer Quality Bookkeeping Services?
It’s none other than Tax King Service that offers quality bookkeeping to valued clients. If you are looking for a bookkeeping service that offers strategic insight about your business in NYC, contact us, and we will handle it all for you.
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