In a society of evolving technology, we are constantly faced with new ways to make our lives easier. Whether it be mobile check depositing or online prescription refills, our world has developed into one of instant information and gratification. No longer do we need to anticipate the delivery of data, it is now at our fingertips. Financial information about your organization should be no different. As technologies have advanced, the prior notion of “write-ups” and bookkeepers has evolved into real-time accounting, or cloud outsourced accounting. There has been a paradigm shift, one that moves beyond the traditional capabilities of a bookkeeper.
For decades, businesses and organizations have employed bookkeepers and “write up” firms to maintain their financial books. The typical scenario usually employs someone to perform the day-to-day accounting functions such as paying invoices, writing payroll checks and performing other back office accounting duties. Most often, this internal staff member wears many hats for the organization including that of a receptionist, an administrative assistant, IT, or even the owner. Nevertheless, this individual is attempting to manage the organization’s books based on limited knowledge. To supplement, a bookkeeper or a “write-up” firm is hired to close monthly books and prepare tax returns.
The first scenario is utilizing your CPA firm to do “bookkeeping”. This is generally done at year-end when the financial statements and tax returns need to be prepared. A staff accountant is responsible for reviewing an entire year’s worth of general ledger activity and making sure that the postings are accurate, consistent, and the ending trial balance figures agree to all supporting documentation. Speaking from experience, it is not easy to untangle or remember transactions from twelve months ago. It is not the most efficient process, and what’s worse, the data is not accurate until the staff accountant has finished the reconciliation which is sometimes months after year end. What decisions can management make based on data that while accurate, is now historical?
Another familiar scenario more common in the early days of my career was bookkeeping known as “write-up”. Clients wrote checks each month and at the end of the period forwarded the check stubs to an in-house bookkeeper. Those checks would be coded in a software, questions resolved, and a “management use only” financial statement generated. Again, accuracy may be achieved, but the financial statements for the month were not received in a timely fashion.
There is a real disconnect between real-time business transactions processed daily and the after-the-fact financial reports received months later. Organizations accept this archaic model because it is all the have and know.
This model is outdated! Stop seeking the help of a bookkeeper. Look to WVC RubixCloud to leverage advanced technology to provide your organization with a dedicated accounting specialist and a CFO to deliver real-time actionable financial and operational data. Customize your reporting to meet your needs and gain insight into your organization you never imagined possible. If you are ready to change your game and remove the burden of bookkeeping, then download our 9 Signs Its Time To Outsource Your Accounting handout below. Don’t rely on your historical data any longer! Move beyond the capabilities of a bookkeeper and engage an effective outsourcing team.
Outsource Your Accounting