More small businesses are now on cloud account software. Many business owners are performing the bookkeeping functions on their own and just as many business owners hire a bookkeeping firm who specializes in cloud software to do the bookkeeping. Now, AI is getting involved to limit human coding errors that still exist with cloud software.
As for me, the external accountant, I have noticed considerable improvement with both, the software and the users maximizing the software full capabilities.
Businesses Using Cloud Software To Do The Bookkeeping
With faster internet the last few years, the cloud software is no longer clumsy and slow during high internet use periods. Hence users can work for longer periods of time efficiently during “busy” periods and are no longer being expelled from the software abruptly. For users who have to reconcile accounts, (a more involved bookkeeping task), the “smoother” functioning of the cloud software throughout the day is a time saver.
I am still finding that entries can still be posted to prior closed years with little obstacle from the software. Many users do not have the adequate training to know that a closed year is not to be touched, even when the user thinks an error exists. Even profession bookkeepers make this mistake and override security in place to fix what they think is an error. The external accountant will need to unfix the fixing of the “error”. A common example of this is bank or credit card transactions that are not downloaded onto the software for whatever reason yet the external accountant is aware of this during the year end process and make adjustments, unbeknownst to the business owner and the bookkeeper.
The cloud based bookkeeping industry has proliferated in recent years. For those businesses who are working with a competent and thorough service provider, the timely financial reporting and information available have helped business owners reach their goals.
Yet, there are still bookkeepers who treat cloud software as a data dumping exercise while over charging businesses for undelivered promises. At year end, the owner is stuck with sunk monthly bookkeeping fees, wrong financial information, and a messy general ledger to hand over to the external accountant.
Cloud software will continue to improve the way entrepreneurs, bookkeepers and external accountants do business. But the real onus is still with the business owner to review financial statements regularly to ensure continued competency and thoroughness of the bookkeeper. Just because high tech and AI are involved do not mean the owner can be absent in the financial reporting process.