By Analytix Editorial Team
Accounting and bookkeeping together form the backbone for financial operations. However, it is no longer enough to continue focusing on hardcore accounting or bookkeeping chores; businesses are increasingly looking for additional value with the solutions they seek. According to an online survey, 72% of small business owners switched their CPA or accounting firm because they were getting only reactive services and not proactive advice.
With businesses shifting to the cloud, and also adapting to software, work gets done faster, freeing up time for other important tasks. However, this does not mean that software can do all the work. Implementing information, and deriving meaningful inferences or actionable insights from it, are critical to a business, regardless of size.
The expectations from current accountants and bookkeepers are no longer limited to preparing and managing cash flows, reconciling bank accounts, and preparing financial statements. Instead, CPA firms are viewed as resources that provide sensible information on the financial and strategic aspects of the business, based on which owners can make informed decisions.
Here are some ways in which highly skilled resources like accounting professionals can offer value added accounting services:
Better Management and Processing of Information: CPA firms and professionals are constantly dealing with data in the form of numbers or financial information. Systems and tools such as dashboards can prove invaluable when decision makers need fast access to accounting figures and data.
Harnessing Professional Expertise: Accountants can also add value to businesses by harnessing their training to interpret and analyze information, thus helping business owners and managers arrive at informed decisions.
Software, Automation, Tech Innovation: It is imperative that accountants adapt to new technologies and innovation. Not only does software not run itself, the results, determined by software, need human understanding, interpretation, and analysis. As businesses grow, their requirements also grow. For accountants and bookkeepers to stay relevant, they need to keep pace with current advances to enable better understanding of systems and thus provide business insights that are relevant to decision makers.
Partnering to Provide Value: Very few businesses want traditional accounting and bookkeeping in the contemporary scenario. According to a survey conducted by a placement firm, out of 1400 CFOs surveyed, a huge majority expect accountants to spend more time on non-traditional accounting work such as strategic planning and IT or information technology. Not only does this increase the scope of work for accountants, it also means that there is a need for accountants to educate and prepare themselves so that they can meet these expectations.
Making it all Count
For most small businesses, the accounting and bookkeeping data will eventually dictate budget and resource allocation, while influencing larger investment decisions. Because they are in charge of such critical information, those providing accounting services are best placed to advise and give insights on matters concerning purchases, expenses, and investments.
In doing so, not only are the benefits of hiring an expert realized, but the costs are also reduced. Ideally, if you are looking for accounting expertise, look for firms that provide solutions on a scalable and as-required basis.
What are your thoughts on value-addition in accounting? Leave your experiences in the comments section below. We are keen to hear from you!
Analytix Solutions offers customized solutions for businesses, ranging from accounting services, and bookkeeping to more complex requirements such as tax filing.