How Your Bookkeeping Should Look Different During This Time of Pandemic

It’s no surprise that Coronavirus has changed many aspects of the way business is done. Not only has this pandemic been a global health concern, but an economic crisis has been triggered since people are unable to interact in the same ways as before. As a business owner, you’ve been facing new challenges relating to the way you are handling safety for employees and customers. At the same time, you still need to keep up with regular responsibilities, including bookkeeping, inventory management, hiring, taxes, and more.

Most likely, your stress as a business owner has increased during this time. For some small business owners, they are busy trying to keep up with the ongoing safety and regulation changes to keep the business doors open. In other situations, businesses have been closed because of limitations and social distancing challenges.

Now is a time to adapt and change to match the new circumstances. If you want to maintain a thriving business in the future, then you need to be looking at the ways you need to adjust your systems and practices.

Service Providers are Out of the Office

Previously, you could find many local service providers available to help through face-to-face interactions. For example, if you needed a bookkeeper, you could have a local accounting team come to your office if needed.

Now, these services have moved online more than ever before. Since most bookkeeping software programs are cloud-based, it means that you no longer need an in-house bookkeeper or local services. Outsourced bookkeeping and accounting give you access to these important skills, without the potential risk of spending time together in the office.

The COVID-19 pandemic created the perfect conditions for many businesses to move online. Additionally, companies previously using computer-based bookkeeping software are now moving to cloud-based programs so the books can be handled remotely. This health and economic crisis have brought about a necessity of changes – many of which will likely improve your business for the future. Business owners who are unable to adapt will be left behind.

Cloud vs. Traditional Bookkeeping Software

If you haven’t already made the move to a cloud-based accounting software, then it is the perfect time to make this change. Traditionally, accounting and bookkeeping software was installed on one computer. Or, there were options for networked computers within the same business to have access to the files. Since the software was only installed on local computers, it meant that businesses needed in-office support to manage the finances. The options were to either hire an employee to take care of these responsibilities, or bring in an accountant or bookkeeper as a consultant. This solution worked for years, especially in the early days of the internet.

Now, technology has transformed the way bookkeeping and accounting can be done. Bookkeeping and accounting software can be hosted online securely, giving you and your team access from any location. Cloud-based software means that all of your financial data is kept on a remote service, giving you access to the information through an online interface. The highest levels of digital security are used to keep your information protected. This means that you no longer need to have a full-time bookkeeper on staff. As you look at the costs of outsourced bookkeeping vs. hiring a new employee, you’ll see that it is much more affordable to bring in the outside services that you need.

One of the main benefits of cloud-based bookkeeping is that you are no longer limited to a single computer. So, access to your financing information doesn’t stop after hours. Plus, having cloud-based information is a better solution in case of a local disaster. If something happens to your computer or office, you can still tap into the information that is needed from another location.

Finally, cloud-based bookkeeping is beneficial because it gives you real-time information regarding the financial circumstances of your company. Your accountants, bookkeepers, managers, and customers can be located anywhere – and the bookkeeping system can continue as-normal, regardless of the lack of in-person interactions.

Setting Up the Right Systems to Help Your Business Grow

The truth is that a good bookkeeping system is one of the foundational pieces you need to ensure that your company can grow to higher levels of success in the future. Growing a business can be challenging and expensive if you aren’t proactive in implementing tools that are designed to expand with the company.

Cloud bookkeeping and accounting software give you the option to scale and adapt as needed, so you can adjust your business practices to whatever might happen in the future. Invest the time, energy, and resources right now to create a solid system, which will eliminate potential roadblocks in the future.

Coronavirus-Specific Bookkeeping Tips

There are a few things that might need to be implemented in your bookkeeping system because of the COVID-19 pandemic:

  1. Move to Cloud-Based Systems: As mentioned above, it is more important than ever to have your business information stored in cloud-based systems. If you haven’t already made this move, then it should be high on your priority list. Cloud-based bookkeeping and accounting will allow your managers and employees to access the information if the team needs to work from home.
  2. Maintain Communication with Bookkeepers and Accountants: Even though your bookkeeping team might not be physically located in a nearby office, they are still offering the quality services that are required. Many of these providers are working from home now, and you can continue to use the skilled services that will support your business. Look for ways to maintain optimal communication, even though you aren’t having face-to-face meetings. Email, phone calls, and Zoom meetings can be great to ensure that you are staying in touch with your business support team.
  3. Paycheck Protection Program Documentation: Many businesses have accepted funds through the federally-funded Paycheck Protection Program. This stimulus package was designed to help cover business costs through the shutdowns and immediate economic crisis. If you are a business owner who accepted money through a loan program, then you need to be sure that you are maintaining the proper documentation regarding how the money was spent. Certain guidelines and regulations need to be met if you are going to qualify for loan forgiveness. These rules are constantly changing, so the best solution is to talk to your accountant to ensure that you are keeping up with the documentation requirements.
  4. Tax Strategies for the Year: Different tax strategies might be used for your business finances this year. For example, many people took advantage of the option to delay their tax payments since the filing and payment deadlines were pushed from April 15 to July 15. Additionally, there might be other ways that you can leverage write-offs and deductions for 2020. For example, if you spent money on health and safety equipment, such as cash register shields or online business tools, then these costs could qualify as business expenses. Every situation is unique, which is why you can’t find the ideal tax strategy online. Instead, schedule a consultation with an experienced accounting and bookkeeping team to see how you can tap into the available tax breaks for small businesses.
  5. Cash Flow Management: Since we are living in uncertain times, it’s hard to say what your business cash flow might look like in the future. Every company needs to be proactive in maintaining an emergency fund of cash whenever possible. Having a rainy-day fund can help you get through the slower times, so you are ready to bounce back when the timing is right. Your accountant can offer personal recommendations to determine how to restructure your business assets, as well as how much money you should set aside for emergency situations.

Good Accounting and Bookkeeping will Keep Your Company Afloat

Without a solid financial strategy, your business could struggle more than necessary during this time. If you want to stay ahead of the competition and maintain a strong company, then you need to be sure to have good bookkeeping and accounting systems in place. These reports show you the current financial health of your company. Additionally, you can identify potential weak points in your business practices that will lead to undesired results in the future.

You are already carrying a lot of responsibility as a business owner, so it makes sense that you might be experiencing challenges in keeping up with the current situation. You won’t regret the decision to invest in a good accounting and bookkeeping team.

If you are looking for information about bookkeeping services for small businesses, then we invite you to schedule a consultation with us at Easier Accounting. We specialize in quality bookkeeping services that can be done remotely – giving your company the ongoing support needed through anything that might happen during this pandemic. Learn more about the benefits of bookkeeping and accounting services for your company by calling us to discuss your unique needs. We’re here to help: (888) 620-0770.

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