New Tools for Small Business and Franchise Bookkeeping
Small business and franchise bookkeeping companies are constantly evolving, with new tools, technologies and practices emerging to help them serve clients more effectively.
Here are some of the latest trends and developments we are adapting or exploring at BookWerksTM:
Automation and AI: Many bookkeeping tasks are being automated with artificial intelligence. This includes things like transaction categorization, invoice generation, and even reconciliation. Tools like QuickBooks and Xero, are incorporating more AI features to reduce manual data entry and improve accuracy.
Cloud-Based Solutions: Cloud accounting software continues to grow in popularity, and we have used it exclusively at BookWerksTM for over a decade.
Software that uses remote servers to host data helps ensure sensitive financial information is securely encrypted to keep it away from cybercriminals. Information is automatically backed up to the cloud; nothing can be lost.
Here are the best cloud-based software solutions available in 2024, according to Forbes:
- Freshbooks: Best for overall cloud accounting software
- Xero: Best for multiple users
- Zoho Books: Best for a diverse range of solutions
- Intuit QuickBooks: Best for maximizing tax deductions
- Wave Accounting: Best for free accounting software
- Kashoo: Best for easy setup
- Neat: Best for businesses with a lot of expenses
These platforms offer real-time access to financial data from anywhere, which is especially useful for remote teams or businesses with multiple locations.
They also often integrate with other business tools, like CRM systems and payment processors.
Blockchain Technology: While still emerging, blockchain technology is starting to be used in bookkeeping. It offers a secure and transparent way to track transactions and could potentially reduce fraud and errors in financial records.
A blockchain is a noncentralized, distributed ledger. ‘Blocks’ are made up of transactions and interactions that form a ‘chain’. The blocks can record a variety of information – like data for your supply chain, payments to foreign countries, deeds of property and information unique to you.
Unlike a regular ledger, blockchain isn’t owned by one person or company (and it doesn’t exist on a single computer). Instead, the ledger exists across numerous computers, and can’t be controlled by a sole entity.
Accounting using a blockchain is fully transparency – a client, bookkeeper, CPA and auditor can access an identical ledger to authenticate data on it.
Blockchain-stored records are permanent, and the information cannot be changed. Once a transaction is on the chain, it would be extremely difficult for a person attempting fraud to alter it – without being spotted in the chain.
Real-Time Financial Reporting: Businesses are increasingly seeking real-time insights into their financial health. Our bookkeeping tools provide dashboards and reporting features that offer up-to-date views of cash flow, expenses and profitability.
Enhanced Data Security: With the rise in cyber threats, there’s a greater emphasis on data security. At BookWerksTM, we have invested in advanced encryption and security measures to protect our clients’ sensitive financial information.
Mobile Bookkeeping Apps: With BookWerksTM, you can check your financial data on the go. View your revenue, expenses, cash flow, profits and most recent reports from your smartphone.
Regulatory Compliance: With changing tax laws and regulations, many bookkeeping tools are updating their features to help businesses stay compliant. This includes automated tax calculations, reporting and filing.
Bookkeeping companies are always looking for ways to provide better service and better outcomes for our clients. If you have questions about any of the above trends, please reach out and we will share what we know, our concerns and how we are implementing them.