Owning a small business in Las Vegas, and anywhere across the globe, is a balancing act—and it’s rarely easy. Even after you’ve created a brand, developed your product or service, built a client base, and invested in its success, your business can still be hamstrung by outdated or inefficient accounting practices. For small business owners prioritizing the day-to-day operations of their company, current trends in accounting and bookkeeping can be hard to follow. But with a little research, these practices can save you time and money when it comes to your books. Here are some of the trends in the accounting profession that those looking for remote back-office support (or local Las Vegas bookkeeping services) should be aware of.
Why Does a Business Need Bookkeeping Services?
Let’s start with bookkeeping, the skeleton of your business—the hidden inner workings that keep the whole thing together. Efficient bookkeeping gives you an accurate, timely picture of your company’s finances, as well as the “big three” financial statements that indicate the health of your business:
- The income statement, which provides you with information about the profit and loss
- The balance sheet, which gives you a clear picture of the financial position of your business on a particular date.
- The cash flow statement, which acts as a bridge between the income statement and balance sheet and reports the cash generated and spent during a specific period of time.
Aside from providing important financial insights, proper bookkeeping also helps ensure compliance with local, state, and federal laws in regard to your business practices. You’re not required by law to keep clean books, but with inaccurate bookkeeping it can be easier to fall behind, get messy and potentially find yourself facing audits–if you get behind on taxes or submit inaccurate tax documents.
It’s absolutely possible for a business owner to handle their own accounting and bookkeeping, but it does take time and effort away from other parts of the job. Businesses who invest in a bookkeeping service see multiple benefits from day one, including inventory control management, account payable/receivable oversight, payroll processing, and boosts to general internal workflow efficiency. Dedicated bookkeeping services also keep track of the current trends in accounting that shape the industry, giving your business an edge.
Importance of Following the Most Recent Trends in Accounting
Trends in the accounting industry aren’t just fashionable ways to do things, they’re the analysis of new methodologies for improved business recordkeeping and compliance based on developing technologies, regulations, and customer demands. (Now, when someone asks, “What is trend analysis in accounting?” at your next dinner party, you’ll have an answer!) Following accounting/bookkeeping industry trends is about leveraging every possible financial advantage for your company—but you don’t need to pay in-house bookkeeping costs to do it. Let’s look at some current trends in accounting and what they can do for local businesses.
Accounting Process Automation
When it comes to ROI, a recent study found that 70% of companies polled saw improvements to time management and workflow efficiency by automating repetitive or tedious tasks. With capable automation software, tasks that could take hours normally are removed from you or your accounting professional’s plate instantly. Automation can help with:
- Classifying tax-sensitive transactions
- Performing cash flow analysis
- Flagging fraudulent activity
- Compiling financial reports
- Performing audits
Future trends in accounting have even started to incorporate Artificial Intelligence (AI) as well, meaning that virtual assistants and software can handle even more complex tasks, freeing up time and reducing human error in your bookkeeping.
Accounting Functions Outsourcing
With the advent of digital computing, work-from-home, and other non-traditional work environments, many businesses no longer feel the need to be shackled to a certain physical area for their needs. In fact, many have begun to outsource critical financial and bookkeeping roles to talented individuals around the globe because it is more cost-effective and, in many cases, profitable. Effective CPA firms and accounting services can help clients regardless of their physical distance.
Bookkeeping, at its core, is record keeping. And with record keeping, comes mountains of valuable data into how your company functions. One of the more crucial trends in accounting is the use of financial data, customer demand data, and competitor data to identify trends and forecast potential risks. As such, accountants and CPAs with analytical and data-mining skills are in high demand and can provide your business with the information necessary to make smart decisions based on valuable financial insights.
Agile accounting refers to a bookkeeping philosophy that prioritizes quick reactions to changing financial circumstances or business realities. While this can sound vague, traditional bookkeeping is more of a reflective workflow, methodically ensuring accuracy and compliance every month, quarter, or year. Agile accounting makes use of goal-oriented thinking, experimenting with new technology, and more frequent oversight to be proactive about potential risks or to capitalize on recent trends.
Perhaps one of the most useful trends in the accounting/bookkeeping industry is the gradual shift to cloud-based accounting software. Cloud technology allows for more flexibility in accounting practices, including remote and shared access to resources and data. Businesses can maintain their business data online in a secure and end-to-end encrypted format, accessible to both accountants and shareholders at the press of a button. This increased opportunity for collaboration can help business owners save on labor costs, and accounting services to more quickly and accurately service multiple clients.
While the goals of accounting and bookkeeping are relatively consistent, the profession itself has trends and new developments just like any other. For business owners with the time and inclination, keeping up on trends in accounting is a good way to keep your books balanced and leverage new developments in your favor. But for business owners with bigger things on their minds, the professionals at The Office Squad have already got you covered. We invest in learning and testing the latest trends in the accounting and bookkeeping industry so our clients don’t have to, and with years of experience offering bookkeeping services in Las Vegas and remotely throughout the country, we’re ready to help your business thrive. Call today or send us a message to get started!