Technological advancement in all areas of life means the growth of cloud accounting software which has led to the major question ‘will bookkeepers become obsolete?’
And the answer is Yes if they don’t adapt to the changes they may find themselves thrown out of business.
The traditional bookkeeper
A traditional bookkeeper had a duty to receive financial documents like receipts, bank statements among other financial transaction documents after the close of a month from their clients. They were then supposed to feed in the key relevant information in an accounting software, reconcile the accounts and balance the accounts. This would often take longer to finish. Today, everything is on cloud software and if you need your financial transactions at any time you just need to log in to an automatic bank feeds and the balances will be delivered to you shortly. Unlike the former bookkeeper requirement, its essential to be knowledgeable in accounting and be very fast in data entry as well as accounting software knowledge because the detailed information is stored in the cloud and the calculations are done by cloud bookkeepers.
A good cloud bookkeeper should be knowledgeable about accounting software, eliminate data entry and stand out with customer service especially in taking their time to interpret to the customers the financial information.
What to do as bookkeeper today
Develop a solid understanding of accounting
It’s not only about QuickBooks, take your time to understand the debits from credits, incomes from liabilities so that in case there is a wrong entry or wrong coding you will spot it earlier and fix it before it affects all the transaction.
Know exactly how the business works
Develop a deeper understanding of the accounting items and how they work example; what accounts receivable and accounts payable are and why they are necessary, what are purchase orders and why are they issued, what entities are suitable for each business. Understand the difference between cash and accrual bookkeeping.
Before conducting the financial transactions, understand how your client’s businesses work
In order to conduct a proper timely financial balancing, check how documents move within that company in order to know what needs to be optimized and what should be automated.
Examine and evaluate the cloud accounting tools
Find a suitable general ledger then solve one problem at a time, the research adds on, develop a collection of tools and ensure they integrate well with your general ledger. Formulate a product for your clients then ask questions as you train further so that you become a star in that field.
Choose a suitable niche market
It’s important to decide on which niche best suits you. So that you can choose clients who fit your requirements while you specialize on few adds on and cores.
Get acquainted with the accounting technology community
Different people have different information regarding accounting so, bookkeepers can learn a lot from each other if they join the community.
Bookkeepers are definitely vital to any business but with the recent development in the accounting software technology,their existence is only promised if they can become more aggressive and vigilant in their career.
For more info: http://www.bookkeeperco.com.au