Accounting focuses on recording, updating, processing, summarizing, checking, and showcasing the financial transactions of any firm.
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Securing a job in Accounting is an achievement.
One can find different job roles in the Accounting field. Candidates with a degree in accounting have lucrative job opportunities in Accountancy firms, Insurance companies, Management consultancies and Investment banks.
Careers in Accounting:
• Chartered Accountant
• Forensic Accountant
• Chartered public finance accountant
• Staff Accountant
• Tax Accountant
• Accounts Payable Clerk
• Payroll Clerk
• Certified Internal Auditor
• Accounting Manger
When it comes to startups, the challenges with the funding are immense. Some accounting tips for small businesses can be helpful in this situation. The management has to be very cautious about all the expenditures.
While minimizing the expenses, the company often has to compromise on the quality of the service.
For baby businesses, poor quality can even lead to the end route. But cost cutting can never be the reason for low quality.
The accounting departments track all the expenses of any organization. Hence, accountants have profound knowledge about the areas where you can cut down the expenses.
Entrepreneurs generally analyze accounting reports to inspect the cost saving methods. But unfortunately, they have the tendency to ignore certain areas in the department itself where they can save their money.
The limitations on the expense are undoubtedly a common challenge that every startup has to face. Accounting is a cost-reducing service.
The managements of the companies need to focus on the cost-cutting areas of Accounting.
There are a number of changes that can be implemented in the accounting section of every business.
They find a way to save money without compromising on the quality of the service.
Have a look at the 4 important areas where one can reduce the expenses
1. Manpower Cost vs. offshore Accounting
Manpower cost is about hiring the accountants who can help you manage the financial area of the business and revenue model. They also manage to save taxes and control unnecessary expenditures etc. But this process doesn’t come along easily. The management pays a high cost for the manpower. Unfortunately, it is always affordable for startups. On the other hand, the accounting services are delivered from outside the office in offshore Accounting. The firms do not even need to provide separate office space or a specific set of hardware. Hence, offshore accounting can save manpower cost.
What is Offshore Accounting?
Are you confused with the concept?
Then you should know a little bit about Offshore Outsourcing first.
Offshore Outsourcing is the way of having specific Business Processes of your company, executed by another Company. This ‘other company’ sometimes belongs to a different country.
In the case of Accounting, this Business Process Outsourcing (BPO) is a service allotted for Accountants of Small-Medium Businesses.
This promotes the entrepreneurship opportunity in lesser developed countries to provide exclusive outsourcing services to the developed world.
Besides that, the rapid growth in technologies has made online communication & virtual management effortless. As a consequence, at zero capital investment Offshore Accounting is virtually available to everyone.
Coming to the Accounting and Finance departments specifically in Accounting Companies, we can identify the noticeable rise of this trend. In the early 21st century, smaller organizations have started to implement this idea.
2. Office Space vs. ‘Work from Home’ and BYOD Culture
You have to allot a separate office space for the Accounting department. It is isolated from other departments. Added to that, space needs to be filled with the infrastructures like the chair, desktop, printers, scanners etc. the specific office space could have been utilized for other business purposes. If you are nourishing a baby company and a startup, you may not initially provide the isolated office space for the accountants. This is undoubtedly the main reason to encourage the BYOD culture and ‘Work from Home’ option.
You must have the question, ‘What is BYOD culture?
BYOD means bring your own Device. It is similar to BYOT (Bring your own technology), BYOP (Bring your own phone) and BYOPC (Bring your own personal computer.
This culture refers to the business policy of permitting the employees to bring their owned device to their office for working. They also get permission to use their personal device to access the important software and information of the company.
The BYOD trend has emerged for a better work-life-balance.
About 41% of the Accounting firms boast of a generic BYOD policy for the accounting department. 63% have a written policy particularly for mobile usage. According to the recent survey, around 81% of employees from 21-29 years olds are using their own device already.
Therefore, you can introduce ‘work from home’ option and ask the employees to bring their won device to the office.
As a result, the companies do not need to spend money on creating a work station for the accountants.
This policy will undoubtedly save a bulk of the money.
3. Local Machines Vs Cloud-Hosting Solutions
The companies that have the accounting department in the office premises depend upon the local machines and hardware. The accountants use a physical server, Bar code scanner, MICR reader etc. Moreover, the management has to allocate mandatory desktops or a printer for each accountant. This is very troublesome. You may be cheated by the local business operators. One cannot rely on the functionality of the hardware installed by the local businessmen.
If you face this problem frequently, then its high-time you should shift to Cloud-hosting solutions. Cloud eliminates the requirement of purchasing the abortive local machines and server.
The essential software and the accounting data are hosted on the cloud. Hence, the accountants can access these from their own device.
They can work from home without going to the workplace.
4. Software Licenses Vs Shared or Enterprise Software Licenses
You must acquire software licenses to do accounting related tasks. Reliable accounting and basic spreadsheet software are necessary for error-less calculation. You may need more additional software depending upon your nature of the work. Purchasing an individual license for all the users is a very costly affair. The startups cannot provide that much amount initially in a business, especially in the accounting sector. Hence, you should prefer an enterprise license and shared license for multiple users.
Let’s check out the top 10 accounting software in the USA:
• Zoho books
• SAP financials
• Clear Books
The Accounting department of any company engulfs a weighty amount in driving the financial operations on the profitable track.
It is instrumental for the overall productivity of the business. So, the owners do not want to take the risk of bringing change in the department.
They hesitate to follow the accounting tips for small businesses in their Accounting sector. Moreover, most expenses of the accounting domain seem as a necessity. The management is not always in favor of replacing the manpower cost and office space.
However, the four mentioned ideas can be introduced to optimize the accounting processes to chain the expenditure without any loss in business.
Modern technologies are always in the hunt of fruitful solutions that can control the investment while delivering high productivity.
Hence, try to launch a new and innovative process in the accounting department to run a more profitable business.
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