For small businesses and startups, bookkeeping poses a significant challenge. Owners or managers typically face three options when it comes to managing their accounting: tackling it themselves, outsourcing it to a third party, or assigning it to an employee.
Each of these options has its own disadvantages. Personally managing bookkeeping tasks consumes a significant amount of time, which is already in short supply. Outsourcing bookkeeping requires granting access to business accounts to a third party, which necessitates a certain level of trust.
Furthermore, hiring a full-time bookkeeper can be expensive and may exceed the needs of a small business.
However, technological advancements have made outsourcing a growingly attractive solution, with the invention of advanced technological solutions, the procedure of bookkeeping has become more appealing and efficient.
The significance of automated bookkeeping is evident from global market trends. In 2022, the accounting software market was valued at $12.01 billion, and it is projected to reach $19.59 billion by the end of 2026, with a compound annual growth rate (CAGR) of 8.5%. These statistics underscore the increasing recognition and widespread adoption of automated software, emphasizing its importance in the business landscape.
Below are the key reasons to consider implementing automated bookkeeping for startups or small businesses:
It Frees Up Employee’s Time
In the fast-paced realm of small businesses and startups, the importance of time as a valuable resource cannot be overstated. With only 24 hours in a day, effectively managing time becomes increasingly challenging, especially considering the need for sleep and the multitude of responsibilities to juggle. Gaining a competitive advantage requires exploring ways to generate additional time for both the team and business owners.
While automated bookkeeping offers the advantage of enhanced flexibility, it often comes at a significant cost, as skilled specialists typically command premium fees for their expertise. On the other hand, relying on a “discount bookkeeper” may yield suboptimal results. This is precisely where automation comes into play.
Small business owners invest a considerable amount of time each week in vital accounting tasks, such as manually reviewing expenses on Excel sheets, organizing sales receipts, and processing payrolls. However, with the advent of technological advancements, a new wave of companies has emerged, harnessing the power of AI programming to automate specific accounting functions.
Implementing automated bookkeeping allows businesses to streamline and optimize the time spent on daily accounting activities. By automating these repetitive tasks, employees can redirect their focus and energy towards the core aspects of business growth. This shift in attention enables a more efficient allocation of resources and enhances overall productivity. Embracing automated bookkeeping not only helps reclaim valuable time but also unlocks the potential for greater success in business endeavors.
Automated Bookkeeping Increases Productivity
In thriving startups and small businesses, the presence of an adaptable team capable of handling diverse responsibilities is often critical. It is commonplace for employees in such dynamic environments to willingly take on unfamiliar tasks that extend beyond their designated roles, all in the interest of advancing the business.
However, for managers and owners, expanding the scope of employee responsibilities requires a delicate balance. The addition of extra tasks to an employee’s workload can easily divert their attention from the crucial responsibilities they were initially hired to fulfill. This, in turn, can lead to feelings of being overburdened, resulting in decreased engagement and fatigue.
Rather than allowing the talent of their team to go to waste, astute managers and owners can recognize the immense potential of automated bookkeeping technology. By introducing automated software solutions to manage these tasks, owners can effectively redirect their employees’ attention toward more valuable and impactful work. This strategic approach ultimately fosters the development of a stronger, more efficient business.
Empower Employees Through Automated Bookkeeping
Even thriving enterprises experience fluctuations in demand, resulting in varying workloads. For instance, a company may witness the sale of 1000 units of products in December, while only 500 units are sold in January. These dynamic shifts in demand create substantial disparities in the workload, with some months requiring additional support while others present excess capacity as businesses await new orders.
In such circumstances, the strategic utilization of contract workers plays a crucial role in bridging workforce gaps. However, the practical challenges associated with engaging temporary in-house bookkeepers often pose constraints for most businesses.
By embracing automated bookkeeping solutions, companies can unlock the power of flexibility, allowing them to customize their service level to align with specific needs. During slower months, automated bookkeeping systems effectively reduce the number of transactions, thereby decreasing costs without compromising an employee’s working hours.
Through the seamless integration of automated bookkeeping, businesses gain the ability to optimize their workforce agility, ensuring efficient resource allocation in response to demand fluctuations. This strategic approach not only enhances operational efficiency but also contributes to overall business resilience and success.