Proper accounting is the
backbone to any successful business. With proper
systems in place. Companies are able to
manage expenses, revenue and track analytics. This data is key when trying to
understand what's driving and influencing your organization. Over the years, the tools and
processes used to collect and record this data
has changed drastically. In ancient Babylon,
accounting consisted of the abacus used in conjunction with
parchment and papyrus. As trade began to increase,
bookkeepers emerged keeping track of trades in ledgers
using a single entry system that listed all debits and
credits in the same line, which was inefficient
and time consuming.
Then, in 1494 Luca Pacioli, an Italian monk known as the
father of accounting and bookkeeping published the first
work on double entry bookkeeping and laid the
groundwork for modern accounting, showing a
clear view of a company's overall strength. But it wasn't until the 1890s
that bookkeepers were given a huge boost to their workflow. When William Seward Burroughs
adding machine was ready for commercial use later, IBM took accounting into
the digital age when they introduced the first commercial
scientific computer available in 1952. Even with all of
this innovation, old school accounting still involved
countless hours manually entering data, as well as
organizing hard copy documents in filing cabinets. Accounting systems of the past
were also normally manned by large full time staff,
including a CFO, accountants, bookkeepers,
data entry clerks and IT professionals. And with all of the
data being uploaded to one central server, it was hard for
just anyone to access the information quickly.
Now, in the 21st century,
the digital age of accounting has gone even further. Introducing cloud -based software, giving real time information. These automated systems reduce
time consuming tasks, taking out the grunt work of analytics,
which frees up accountants to play a more strategic role
in their companies. However, despite all of the
advantages of these cloud based systems, some small
businesses still aren't taking full advantage of these tools
that are not only readily available but
also incredibly affordable.
A study conducted by Fit Small
Business asked 300 small businesses whether or not they
were using cloud based accounting software, and they
found that less than half of them answered yes. How can you tell if your
business is using an outdated system? Start by asking yourself a few
basic questions. Can you access your information from anywhere? Is your data
updated in real time? Can you collaborate
with other users online? If you answered no to any of
these questions, chances are that you're not utilizing cloud
based accounting software. Two great examples of this
software are QuickBooks Online and Xero. Even consumers share the
sentiment that technology is vital to a business' success.
When asked, 68 percent of
consumers find modern technology vital to a
business' success, and 57 percent believe that businesses
that adopt modern technology are more competitive. And you know what they say the
customer's always right. Adapting to emerging technology
can put you ahead of the curve and give you an edge
over your competitors. What makes Xero and QuickBooks
Online even more powerful is when they're combined with
applications like inFlow, which is a must
for anyone doing online accounting with inventory. Integrating with inFlow would
create a complete inventory accounting system, cutting down
double entry, pushing sales orders as invoices,
purchase orders as bills, and it also pushes
total inventory values. inFlow acts as your inventory
accounting software tracking stock levels and fulfillment,
while Xero and QuickBooks Online track
bookkeeping and finances.
If you want to learn more about
how inFlow integration works with Xero and
QuickBooks Online, click the link in the description..