Jonathan Carter, CPA, CMA of KATA Accounting Solutions Professional Corporation talks about the importance of bookkeeping and how technology can help
Accounting has come a long way from a ledger with handwritten entries. To be successful, businesses can benefit from much more in-depth record keeping these days and technology can play a big role in streamlining the process.
Jonathan Carter, CPA, CMA and Senior Accountant of KATA Accounting Solutions Professional Corporation is an Elite ProAdvisor Quickbooks which has been recognized as one of the Top 100 ProAdvisors Quickbooks in the World. He is widely regarded as a thought leader and technology expert in the field of small business accounting and bookkeeping. He answered some of my questions about accounting, technology, and costly error avoidance.
Why is good bookkeeping so important?
âIn the world of accounting and bookkeeping, with no records you have nothing to show for all your hard work – it’s like nothing has happened. Accounting, in a nutshell, is the creation and maintenance of your business records. You need it for all kinds of things that help you and your business be successful, like business loans and tax benefits. The CRA will ask to see these records from time to time as you conduct your business, and if they find them to be deficient, they are likely to take a more in-depth look at your business. Poor record keeping can turn a simple CRA review into an audit quite quickly. “
How can accounting software help a business?
âThe selection of proven technologies is vital. Machine learning, automated logins, application integrations, optical character recognition, and many other tools can save a lot more money than they cost. They can also add a lot of flexibility in the way your team reports financial data, make reporting easier, and save significant time, often through the use of smartphones and tablets.
âThe hardest part of using cloud bookkeeping and bookkeeping tools is changing habits. It is very important to work with a company connected to the world of accounting and bookkeeping applications, as application companies often sell solutions that they cannot necessarily satisfy. Currently, there are over 10,000 applications in the field of bookkeeping and accounting.
What is most important in accounting?
âSeek professional help, whether it’s a bookkeeping company or an employee. It is important that you are well helped. We have seen so many times that people have chosen the cheapest option they could find and ended up paying a lot more than they needed later on, whether in taxes or accounting fees, to unravel the mess of the ‘cheap’ option created. “
How can companies avoid accounting disasters?
âFirst, teach your team basic technical security, things like not reusing passwords, not leaving devices on, and not using public Wi-Fi networks for work. The human element is the greatest security risk. In today’s environment, there is no reason for an accountant to have direct access to your bank accounts, so financial control is easy to implement.
Second, hire a skilled helper, and while it is okay to delegate responsibility for the accounting function, it is essential not to abdicate responsibility. The best people always need the right data to do their jobs well.
Finally, hold your accountant accountable. Make sure things are filed on time and payments are collected or made when you need them. If that doesn’t happen, you need to know why. You should also be responsible for providing the information the accountant needs on time and in good order.
What should people look for in an accountant?
âSpecialization is steadily increasing in the field of bookkeeping and accounting and it is best if you can find a person or company with direct industry experience. At KATA Accounting Solutions Professional Corporation, we don’t take all customers through the door. We specialize in serving consultants, coaches and creatives in the online space. Remember that a Jack or Jill of all trades is not a master. ”
Kata Accounting Solutions Professional Corporation is a virtual accounting firm in Canada that provides personal and business accounting services including bookkeeping, tax preparation and declaration services using innovative technology based on cloud. For more information on how Jonathan and his team can help you streamline your accounting system, call them at 1-800-491-4801 or visit them on their website, Facebook, Twitter, Instagram or LinkedIn.