bookkeeping tips
26-Jun-2021 By - team

The profession of bookkeeping is one that has been honoured for a very long time. Ancient Babylon, Assyria, and Sumeria were the locations where some of the earliest accounting documents were discovered. These records stretch back 7,000 years. These tokens kept track of the increase in the number of harvests and animals. In later times, when monarchs gained more authority, they began to employ "bookkeepers" to oversee the management of their businesses and the collecting of taxes.

Since those times, bookkeeping has come a long way and through a great deal of development, including several adjustments and advancements. However, because of the increasing amount of accounting work that is being completed by machines, many bookkeepers are fearful of what the future holds. Is maintaining records and books becoming obsolete?

An example of a Babylonian report from the past.

The role of bookkeeping is changing, and the role as we know it today is becoming obsolete. Without a doubt, companies who embrace technology are going to have a competitive advantage over those that don't.

Employment of bookkeeping, accounting, and auditing clerks is projected to decline 3 percent from 2020 to 2030. Despite declining employment, about 170,200 openings for bookkeeping, accounting, and auditing clerks are projected each year, on average, over the decade.

Is a bookkeeping business profitable? The good news is that bookkeepers can make a sizable income even with their ongoing monthly expenses.

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Everyone agrees that desktop accounting is becoming extinct; this is a universal truth

In the same way that the primitive token system gave way to more sophisticated methods, the bookkeeping methodology we use is also undergoing a paradigm change. The owners of businesses of all kinds are increasingly transferring more and more of their activities online, particularly now, when smartphones and other forms of mobile technology are becoming more user-friendly and readily available. The owners of businesses want to be able to log into their accounts from any location in the world, using any device of their choosing, and using any browser they like.

Accounting is progressively becoming more automated thanks to the cloud-based accounting software provided by Xero.

Bookkeeping and data entry are becoming less necessary in today’s world because offices are increasingly moving towards becoming paperless, mobile, and global. As someone whose whole line of work for thousands of years has essentially been constructed around data entry, the notion can be very disconcerting for a book-keeper.

On the other hand, this is not always the case.

Both the books and the bookkeepers are evolving

Bookkeepers shouldn’t be fearful of the influence of cloud technology; rather, they should welcome it with open arms and embrace it wholeheartedly. Cloud accounting is a significantly more efficient alternative to more conventional methods of bookkeeping. It is not a sign that a catastrophic event is about to occur for your firm; rather, it is a tool that you can use to improve the functioning of your system.

Take into consideration the repercussions. You will always have access to any and all of the information that you might need, so there is no need to worry about that. You and the customer do not need to print out reams of paper or go to various sections of the city to deliver the files because neither of those things is required. Your consumers will originate from many different regions of the world due to the fact that you are able to do commerce for your accounting firm from virtually any location on the planet.

For accountants and bookkeepers, Xero is completely free, and you won’t have to worry about upgrading your licence whenever there is a change because Xero will handle all of that for you as part of the subscription fee. A substantial amount decreases your expenditure on software. The client does not find the modest monthly membership charge to be difficult to handle. The automated bank feeds and rule-based reconciliation have allowed bookkeepers to reclaim a significant portion of the time previously spent on reconciliation tasks. What are your plans for the remainder of this time?

To start, you may think about expanding your client base. More clients = more revenue. And that is always a cause for celebration. As a result of the recent economic downturn, an increasing number of people will want the services of a bookkeeper. This is particularly true of smaller businesses. Because a human requires the financial understanding to comprehend what is occuring with these systems, cloud-based accounting software will never remove the need for bookkeepers. Most business owners would rather hire someone who already possesses this knowledge rather than educate themselves on it.

On the other hand, bookkeepers now have more opportunities to take on additional responsibilities thanks to cloud-based accounting. The bookkeeper can expand their repertoire with a wide variety of additional services so long as they do not operate outside the boundaries that have been set for their company by the applicable legislation.

The bookkeeper is responsible for anything and everything pertaining to the company that involves a sale, payment, or invoice of any kind. Consider the extra services that you might be able to offer in the categories of payroll, accounts payable, accounts receivable, stock, point-of-sale, e-commerce, and so on. It’s all about advising the customer on the most effective approach to keep track of their information and advising them on how to become more efficient.

In an interview published on the blog BoxFreeIT, CEO of the Association of Accounting Technicians Rob Comelli discussed the evolving function of bookkeepers in the Australian economy. He provided some great insights into the value that bookkeepers may offer to a company’s operations while still adhering to the regulations that come with being a BAS Agent.

Opportunities for Bookkeepers and Accountants to Work Together

As a result of the fact that bookkeepers and accountants may at times regard their respective services to be competitive rather than complimentary, there is the potential for occasions in which a conflict emerges between the two groups. If you form a strategic alliance with a company that focuses on accounting, you will be able to give your clientele the very best of both worlds by giving them access to both of your services under one roof.

A blog article was written by Xero and published on their website outlining a collaborative partnership between a bookkeeper headquartered in Australia and an accounting business. Toni McCulloch from Accounting North explains that the most significant benefit of working closely with Briohny de Vere of Bees Knees Bookkeeping was that she could trust incoming information to be accurate and fully reconciled. This was one of the reasons why working with Bees Knees Bookkeeping was so beneficial. The primary advantage of collaborating closely with Bees Knees Bookkeeping was that this was accomplished. Because of this, the accounting firm is able to concentrate on the company’s profits, cash flow, and overall growth.

When using the older desktop accounting systems, there was always a gap between the work that the book-keeper and the accountant finished. This gap existed regardless of which system was being used. Due to the fact that each party viewed their role as being independent from the other and did not communicate with the other, this gap was sometimes the source of conflict between the two sides. If, on the other hand, both parties are making use of Xero, then they will be able to examine all of the information at the same time. In addition, the inclusion of WorkflowMax implies that collaboration and work tracking will be much easier to access than they were before.

The question now is: how should this connection function? The bookkeeper is often responsible for overseeing the day-to-day accounting tasks, however, in the event that any complex issues develop, the bookkeeper can defer to the accountant. In most cases, accountants will focus their efforts on establishing new businesses, calculating depreciation, and optimising the results of tax filings. Bookkeepers have the ability to take care of any overflow work from accountants and bring any difficulties they discover to the attention of accountants before the conclusion of the fiscal year.

When it comes to the development of leads, the discovery of new business, and the referral of clients to each other, both accountants and bookkeepers have the ability to collaborate and exchange resources, which may result in higher wealth for all parties involved.

Xero takes a proactive approach to encouraging accountants and bookkeepers to collaborate with one another by providing opportunities for training and webinars, as well as hosting an annual conference called Xerocon.

However, what if I do not wish to alter my behaviour?

You don’t have to do that, do you? Nobody is making bookkeepers use cloud-based accounting software against their will.

The fact of the matter is that not all bookkeepers are excited to employ technology that is hosted on the cloud. This is the reality of the situation. In addition, a sizeable proportion of the company’s other clients share the same viewpoint. There will be many business owners who are even more reluctant to change than you are, and they will wish to carry on employing the identical strategies they have been employing for decades. You should expect to encounter lots of these individuals. If you are not interested in learning about new technologies, then you should concentrate on providing solutions to these consumers that are related to bookkeeping.

Be aware, however, that the market share held by those who have not yet adopted cloud computing is fast dwindling, and the revenues generated by their companies are frequently doing the same.

It’s possible that the time has come for you to investigate the motivations that lie behind your aversion to change. Is it possible that you feel you are too old to make changes in your firm at this point in your life? Are you tense as a result of the fact that you are being compelled to engage in an activity that is not part of your typical routine? Have you ever had the experience of feeling as though you just can’t keep up with all the new technology? Do you believe that you would arrive at a different conclusion if you were to educate yourself further on the capabilities of accounting software that is hosted in the cloud? There is only one method to discover this information, and that is to…


Putting Yourself Into The Role Of A Consultant

What steps should you take if your customer wishes to take charge of their own bookkeeping in order to reduce overhead costs? Because the economic downturn is still at the forefront of many company choices, customers and business owners take a close look at their expenditures, and the first step they take to save money is to reduce their spending on professional services like bookkeeping. Because a customer using cloud accounting can automate a significant portion of the process, they may start to assume that they do not need your assistance. This is the greatest challenge for bookkeepers in today’s rapidly shifting world.

You shouldn’t, however, immediately rule out the idea of doing business with that client. Bookkeepers provide value that goes much beyond the simple act of entering data, which is something that we are all aware of; however, the client might not be aware of this. If you take the time to listen to their worries, you will increase the likelihood that you will be able to come up with a solution to a problem that both you and they are experiencing.

You may show them that it is more cost-effective for them to pay you to do the books rather than do the books themselves by calculating the cost of their time on an hourly basis and comparing it to your hourly fee. You might, for instance, utilise their financial records to show them where else in their company they can make cuts to save money. This would be in a different aspect of their firm.

They will need training to understand how the system operates and what they need to do on a monthly basis with their accounts if they are truly set on keeping their own books, but they will also need that instruction. If they are truly set on keeping their own books, they will be determined to do so. Individuals may require ongoing supervision after the session in order to successfully traverse the complexities of the system and comprehend its nuances. Is it not true that you are the most qualified individual to provide this direction?

Demonstrate to them ways in which they may improve the efficacy of their operations in other areas, possibly by using workflow management software such as WorkflowMax, which will both save them money and boost their output. When it comes to technology that is used in businesses, a bookkeeper may be an especially useful resource. Show how valuable you are by giving further recommendations and suggestions.

Provide a scaled-back service such that you are just responsible for a subset of the typical responsibilities, and they take care of the rest. You may, for instance, offer to perform a monthly bank reconciliation or conduct a quarterly assessment of the company’s bookkeeping. However, the cost to your customer will be lower than it would be for your entire bookkeeping service because this will assist them in spotting problems before the end of the year. If a freelance bookkeeper just had this kind of job, it may be plenty to keep them busy.

Because the rate you charge for your services as a trainer and consultant should be higher than the rate you charge for the fundamental monthly bookkeeping services you provide, this kind of arrangement is also beneficial for your bottom line. This is because the rate you charge for your services should be proportionately higher.

Steps for Bookkeepers to Take

Therefore, what steps can you do right away to assist in bringing about change inside your company? If they want their bookkeeping businesses to expand and thrive in the years to come, bookkeepers should give some consideration right now to the following straightforward actions.

  • Learn as much as you can about the technology. This requires becoming familiar with all of Xero’s capabilities and add-ons, such as WorkflowMax, and the value they may provide to your customer base. This includes putting the many available technologies to your own use, participating in your neighbourhood training sessions, using the various online training resources, and going to events like Xerocon.
  • Gain knowledge from people who are considered to be thought leaders in the field of accounting and bookkeeping. Observing the actions of others and gaining insight into the thought processes behind their choices is one of the most effective methods to determine the path that your accounting firm will take in the years to come. Attending industry conferences such as The Bookkeepers Summit and Xerocon, as well as reading online case studies and blog postings, are also excellent ways to accomplish this goal. There are many excellent locations to begin, but some of the best include the Pure Bookkeeping Blog, The Freelance Bookkeeper Blog, and the Xero Blog.
  • Determine your new product or service offers. The bookkeeper’s job is evolving from one focused on data input to one that emphasises data management. Think about the many kinds of services and bundles you may provide for your customers. Consider the areas where you excel, and your interests lie and chat to your customers about the areas in which they are experiencing roadblocks in their businesses. You could be able to add value to your services by providing software solutions that aid customers in managing payroll, e-commerce, and point-of-sale systems, or you might be able to support customers who wish to perform their own accounting by providing monitoring services.
  • Learn new talents. Examine your skill set carefully to identify any holes that would hinder you from supplying your new services (as decided in 3). Now is the time to begin educating yourself in order to become a company consultant and improve your IT abilities. At this vital time in the development of your company, it may also be quite advantageous to learn more about marketing your company, networking, and focusing on solutions rather than problems.
  • Think about the several ways you may rebrand your company. Are you shifting your company model from that of a bookkeeper to that of an invaluable business consultant? Remember that “consultants” receive more pay than bookkeepers; hence, you may choose to modify your branding to reflect the changes in your company model. You may find that you require the assistance of a branding agency, graphic designer, or copywriter at this step of the process.
  • Create new business partnerships that focus on collaboration. Many individuals and businesses provide overlapping services, such as those of accountants, tax agents, and business advisers for cloud computing, for example. Work together with these individuals to exchange resources, provide references, and provide each other with advice. Your company’s success will be directly correlated to the strength of your network.
  • Collaborate with the companies that offer the technology. Be certain they will continue to provide your customers with the most effective software solutions. You are frequently the closest to the firm’s day-to-day operations, and as a result, you can give useful insight into what they require.

Even while there is a vast new world out there for bookkeepers, this does not suggest that the function of the book-keeper has been rendered obsolete. On the other side, bookkeepers are more vital than they have ever been; nevertheless, as a result of technology developments, their purpose is transitioning from data entry to data management.

If bookkeepers make use of the new cloud-based technologies that are made available by Xero and WorkflowMax, there is a possibility that they will be able to greatly improve their levels of efficiency, as well as their levels of productivity and profitability. Bookkeepers are an essential source of counsel due to the knowledge that they are able to impart to owners of businesses, and it is always worth paying for the advise that bookkeepers provide.

Bookkeepers with an entrepreneurial spirit are expanding their services to encompass broader consulting and cooperating with accountants and other B2B services to get better results for their clients and themselves.

Bookkeeping practice is not at all extinct; rather, it is only developing. A bookkeeper willing to work with others and make improvements will never be without a job.

How has the introduction of new technologies affected your accounting business?

Bookkeeping is not a dying profession.

In order to provide financial reports, they are responsible for entering financial transactions, monitoring credits and debits, and managing numerical information.

You can’t just launch a company and then sit around waiting for customers to start doing business with you. Will all of your customers utilise the same system, or do you plan to support a number of different ones?

In order to assist you in making a choice on whether or not to become an online bookkeeper, we have compiled 10 crucial questions for you to ask yourself.

You may also check out Upwork if you’re interested in finding bookkeeping employment from home.

In most cases, the work that can be found on Upwork is considered to be that of independent contractors; nevertheless, the reality is that you can discover exactly what you’re searching for there, particularly if you’re willing to work on a contract basis. Even if you decide not to make it the primary emphasis of your job hunt, you should at least investigate the possibility of doing so. It might be beneficial to submit your resume for a few bookkeeping positions in your region and then enquire about the possibility of working from home in the position that is offered.

It’s possible that you have previous professional expertise that might serve as a launching pad for attracting new customers and assisting them effectively. I now have a part-time job working outside the house as a bookkeeper, and I’ve been wondering whether the abilities I already have, together with some more training, may help me find a career that I can do from home. Hi… I have been working in accounting for the past 30 years and am currently the controller of a thriving company located on Long Island. Because of certain recent misfortunes that have befallen me, I need to get a second job so that I may augment the money I already have. I’ve worked in the subject of bookkeeping for a good number of years, so investigating this possibility was something that attracted me.

There are a wide variety of options available for accounting software, and it is up to you to choose which one you will use. However, this level of concentration is not required for all aspects of online bookkeeping. Marketing, responding to communications, and working on networking retained profits with others are some examples of these activities. However, when it comes time to really conduct the bookkeeping, you should have an environment that is free from distractions. This is a potentially lucrative work-from-home option due to the fact that many companies and individuals want assistance with their bookkeeping.

In addition, I devote part of my time to expanding my knowledge of bookkeeping abilities and the ways in which to enhance the procedures for my customers so that together we can make things flow more efficiently. Math was always one of my favourite subjects in school. I also loved my work in the banking industry, where I was responsible for analysing tax returns and making loans to local businesses and individuals. In order to acquire the inside scoop for this Bookkeeper Business Launch review, I decided to conduct an interview with a student who has already completed the programme. It has been claimed that some virtual bookkeepers make as much as $151,000 year from their work.

Get the Right Accounting Software

Even if you do all of your bookkeeping work online, you still need to reassure your customers that their sensitive financial and personal information is treated with the highest discretion and security. When you work from home, you owe it to your customers to convince them that the information they entrust to you is protected actively and cautiously.

The most effective strategy for this is to set up a virtual home office with a door that can be locked (restricted access). If you don’t have the room for this, you should at least try to get a desk that has drawers that lock so that you may store paper documents there. In addition to this, check to see that a password protects your computer and that no one else but you uses it.

Virtual Bookkeeping Defined

virtual bookkeeping

You may hunt for an at-home accounting job in the same way that you might look for a more traditional bookkeeping position. This means you might apply to work for a firm specialising in bookkeeping. This is a one-of-a-kind position because most of the work may be performed in the comfort of one’s home. Finding a tremendous traditional career that you can subsequently convert into a work-from-home opportunity is often the first step in finding the ideal job to perform at home.

If you choose to work for a company that provides accounting services under contract to other businesses, you will still be working from home, but you will be responsible for the financial transactions of a number of different companies. You have to be able to connect with your customers if you want to have a successful career as an online bookkeeper.

Volunteering for a local organisation that provides social services and getting to know more people in your neighbourhood is an efficient method for accomplishing this goal.

  • I would argue that the function of a bookkeeper is shifting much more than that at this point in time.
  • These jobs are largely seasonal; however, they can be either full-time or part-time, and some of the seasonal employees who fill them will be offered permanent positions.
  • Keep an eye out for appropriate training sessions, books, webinars, and online courses that may be found in the bookkeeping, finance, and accounting industries.
  • The potential revenue and the optimistic job prospects are two of the most attractive aspects of working as a virtual bookkeeper.
  • I have more than 20 years of expertise in management and bookkeeping, and I’ve decided to start working for myself to take charge of my fate and career.

This Virtual Assistance company was established in 2010, and they have virtual bookkeepers working for them as part of their talent pool. Bookkeepers who work on a freelance basis and have several customers typically charge by the hour. By employing this delegation method, large accounting firms can provide service to a large number of clients at any given time.

Bookkeepers are able to carry out the numerous accounting activities assigned to them without encountering any difficulties; nonetheless, they are sometimes required to provide sensitive papers to certified accountants for approval. A person who possesses withunting skills and knowledge of the process of financial statements in a traditional economy can be described as a bookkeeper.

Naturally, having this much freedom means that you will work harder than traditional bookkeepers, particularly if you decide to take the freelance path and seek customers on your own. Having this much flexibility also means that you will be able to charge higher rates. FlexJobs is a home to a large number of independent contractors, and the website features a whole category devoted to bookkeeping jobs that can be done from home.

Although there is not much information posted about the virtual bookkeeper job, the company does accept resumes at any time of the year. It is home to a large number of licenced accountants, bookkeepers, and other financial professionals who work either part-time or full-time. People with at least five years of expertise in accounting or bookkeeping and advanced abilities in QuickBooks are constantly in high demand at Belay, which is why the company is continuously looking for qualified candidates.

When looking for chances available to virtual bookkeepers, I came upon this website by accident. I am relieved that I did not have to go through the trouble of discovering it the hard way because I discovered it rather early on in my search.

It is important to bear in mind that the $2,000 capital I mentioned only covers you as the principal bookkeeper who would deliver services to clients; therefore, you are investing in your talents. The potential revenue and the optimistic job prospects are two of the most attractive aspects of working as a virtual bookkeeper.

No amount of technology or outsourcing can replace the necessity for individuals who operate organisations and make choices regarding finances to have a solid grasp of those finances.

The omnipresent bookkeeping software’s job is to organise and process the data, and it does this quite well. However, the ability to make decisions based on all that data will ultimately continue to lie with talented and knowledgeable people. Those with a passion for numbers and books will be able to find acceptable career opportunities, despite the patterns of stalling or dropping in Oregon intuit payroll and the nation as a whole.

It is possible that other job titles require a certain degree of bookkeeping abilities; nonetheless, these competencies are particularly important for managers and business owners. Small firms frequently require bookkeepers in order to process payroll and carry out other office-related responsibilities on an as-needed basis.

You may also obtain access to the Rockin’ BBL Students Community, the student community associated with the Bookkeeper Business Launch. In addition, there are case studies and interviews with individuals who share the successes their successes of their bookkeeper businesses.

Following your enrolment in the Bookkeeper Business Launch programme through Intuit Payroll, you will enjoy the following benefits. At this time, the cost of the premium course in conjunction with mentoring for Bookkeeper Business Launch is $2,997. You also have the option of making 12 instalments of $299 if your budget is really tight.

In addition, this has made it possible for occupations that have been there for a long time, such as bookkeeping, to thrive despite the rise of globalisation. Bookkeeper Business Launch does not offer mentorship, but the other students and the people who answer the emails can assist you with a wide range of challenges and help you learn and develop as a result.

They are all working bookkeepers with years of expertise who are able to guide you through the majority of challenges and are accessible to support you through email. There is a team of wonderful folks that are available to support you. And if they cannot assist you directly, they will lead you in the correct path to assist you in obtaining the assistance you require. I was supplied with the resources essential to identify customers, to deal with customers, to get paid on time, and to expand my business.

What are the most effective steps to take in launching a bookkeeping business from the comfort of one’s own home? Theresa Holly Reisem Since its inception in 2009, Hanna has served as the publisher and founder of The Work at Home Woman, a publication that assists individuals in locating work-from-home occupations and enterprises that satisfy their spiritual needs.

According to his recommendation, bookkeepers should consider value pricing and pricing structures that use set retention rates to safeguard their revenue. The majority of well-established businesses that seek to employ virtual bookkeepers demand, at the very least, a bachelor’s degree.

Although I am still relatively new to the area of retained profits, I am determined to carve out a niche for myself in this industry and achieve great success. I have more than 20 years of expertise in management and bookkeeping, and I’ve decided to start working for myself to take charge of my fate and career.

She has been able to figure out how to select a career path that you are actually enthusiastic about by using her unorthodox career route of having over 30 jobs and getting two college degrees. This uncommon career path has allowed her to:

The ability to generate decent money while also gaining the flexibility and independence that you seek can be attained by working as a bookkeeper. A computer, an internet connection, and accounting software are the only pieces of hardware and software necessary in addition to the minimal initial setup.

While it may take some time to become proficient in accounting, the fundamentals can be picked up by virtually anybody who is good with numbers and has a knack for entering information with enough practice.

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