If Going Paperless is Your firm’s New Year Objective

Any technology driven organization is primarily dependent on computing devices with a host of peripherals and software options, which complement the basic functions of a business. Digital medium has reduced our dependencies on a lot of unnecessary clutter, usually seen in an organization. Right from having ‘tiny post it’ notes to small hand written memos, which were used for office communication about a decade ago, to having important documents or files now available in digital form, received in email instantly! There’s a gradual but inevitable shift to a paperless with each passing day. Increasing business firms are now going the paperless way. Environmental concerns aside, having a paperless office has its own benefits over old school methodologies. Moreover, relying on less paper means, reduced consumables expenses for your organization. Furthermore, reduced space requirements for using and storing paper documents translate into lesser floor space requirements for any firm.

The Myth

However, paperless doesn’t mean any organization ‘Will not need’ any paper-based documents or ‘can operate without’ any paper in their office premises. That’s the primary myth associated with the term — “paperless office”. Any office needs paper for daily functioning of important tasks and chores. What needs to be understood here is, no matter the nature of your organization, there are some basic functions or business processes, which cannot do without any paperwork. For example, accounting, inventory, legal, logistics, etc. All these need the very basis of paperwork because of the scope of the work they address and manage. In all these business functions, the need for proofs and records necessitates the use of paper-based documents at every step, and every day. For such purposes and functions, no business can ever avoid using any papers at all!

Physical to Digital

However, there are many other opportunities where you can cut down on or eliminate using any papers at all. For starters, once you have all paperwork signed and filed away, you can using document scanners to convert the physical paper form of all such important documents into digital copies of their original physical versions. This goes a long way, as digital copies aren’t as affected by physical environmental changes as physical versions of documents are easily affected over time. Moreover, physical suffer damage due to mishandling and incorrect storage, often due to repeated retrieval procedures. It makes more sense to have documents such as bills, receipts, contracts and business cards digitally scanned and converted into editable documents using the latest OCR technology.

Storage & Security

It makes easier to store and retrieve digital copies in a logical format much convenient whilst increasing the security of any and all such confidential documents. Furthermore, you can restrict the access to each document in that repository to select employees in your organization. Moreover, there can always be a track of when anyone accessed it. This ensures that there isn’t any unauthorized access to even a single document without permission from the management hierarchy. Furthermore, in lines with digitization of all physical documents, you can and rather should pursue requesting paperless documents such as statements, reports, etc. from financial institutions to begin with. This makes provisions beforehand without having to convert physical copies into digital ones. It serves multiple purposes such as reducing the time taken in transmission of documents, safety & security of handling and storage, and restricted access permissions for only those entitled access to such documents.

Cloud Storage

Alternatively, you can go for cloud storage solutions for document management. Although digitization has far more advantages over maintaining physical copies of your documents, it has a few concerns that need to be addressed. Since you are storing your documents on a local computer or file server, there could be hardware failure, or security lapses if the protocols weren’t set stringent enough. Moreover, it is tedious and time-consuming process to send/receive any digital documents, frequently. These are rare but not entirely avoidable issues, which can be solved with structured planning and implementation of policies.

However, to mitigate such issues, Cloud Storage technologies have evolved a lot in the past few years, becoming cost-efficient along with being conveniently accessible from anywhere, including mobile devices! It can be said that cloud technology is the future, given its increased reliability, security, accessibility, and economical costs for setting up and using it daily. There are scores of options available nowadays, free and paid with various plans suitable as per your requirements.

Taking Notes

Consecutively, cloud technologies have crossed the bridge, going beyond offering storage services. For many business firms, taking notes, memos, To-Do or Tasks lists, etc. are daily occurrences on the work floor. In order to have a paperless, these activities would also need their digital counterparts just like storage options. From having Windows built-in Notepad and Sticky Notes, to dedicated Notes-taking applications such as EverNote, Wunderlist, Google Keep, etc. are some of the few popular options leading the pack today.

End Note:

Considering the above issues and solutions, it makes more than necessary to begin digitization of physical documents, and implementing digital replacements of traditional avenues of daily business operations, which required use of paper. Furthermore, migrating to cloud technology would increase the efficiency as well as grant greater security to your digital documents from day one.

Read more: CYBER SECURITY FOR ACCOUNTING FIRMS

How to find the Right Tax Accountant for Accounting firm

For any business, whether small or big sized firm, everyone needs tax accountant for routine financial operations, records and tax planning.

In the event that somebody reveals to you that he contracted a tax accountant to do his accounting and tax-related tasks, you may think that his tax situation must be difficult. But, it’s not like that. Many organizations can get maximum benefits from hiring a tax accountant, and a lot do. But before that, you should take some right steps while hiring an accountant or tax preparer for your business.

Understand Why You Need a Tax Accountant

first of all, you need to identify what exactly you expect from an accountant. Here are some common causes for why you need one.

  • Preparing tax return is time-consuming, hectic or confusing.
  • You want to make sure your tax return is accurate.
  • Organize and update the company’s tax database
  • Prepare necessary paperwork for tax payments and returns
  • Identify tax savings and suggest ways to increase profits
  • Complete quarterly and annual tax reports
  • Estimate and track tax returns

Finding a Tax Accountant

Here are some tips for finding a tax professional with the specialized skill you need. Remember one thing, not the accountant, are ultimately responsible for the info involved in your tax return.

  1. Referrals are usually the best way to find a trustworthy accountant. Ask your friends and family members, if there any reference they have in their contact. It can be helpful to ask someone who has a tax situation that’s like to your own.
  2. Determine your business needs: Do you want an accountant to just handle the books and file your taxes, or someone who can give advice for business grows? It’s also important to ask if the accountant has the authorizations to sign financial statements and do legal compliance work.
  3. Areas of Expertise & Services Delivered: Many CPAs have their own areas of expertise and provide specific services to clients. If you are looking for tax planning, business entity choice, or IRS representation, make sure the accountant you hire to work with has the essential skills and practice to do the job done.
  4. Many Local firms specialized in tax preparing for individuals and small businesses but ask if the firm has the expertise to manage your taxes if there’s anything unique situation.

Questions To Ask Before You Hire Remote Tax Accountant

When you shorting your list of potential accountants, schedule a time to speak to each one of them and ask some basic questions. Here are a few questions to get you started:

  • How much-experienced Person will you have?
  • Require Accounting software knowledge
  • What kind of tools will be used for communication
  • Remote access to staff
  • Are you providing Daily Report?
  • What if my staff member is on leave?
  • Where will you Keep work files and other required stuff?

Remote staffing: The best and cost-effective way to hire a right tax accountant. Experts at a specialized staffing agency help you focus your search for Tax professionals with industry experience, quickly and successfully. You can hire a remote employee from a staffing agency and gain learning curve benefits. A staffing firm also helps save you money because it can handle all aspects of the staffing process: personal interviews, technical skills evaluations, soft skills reviews and determination of the suitability of a candidate’s fit with your work environment and all.

A staffing agency can give advice on what mix of workers you need, including full-time, part-time or temporary staff. It will save your cost up to 75% compared to an in-house staff.

Read more: Remote Staffing for Accounting Firms: Doing What Big 4 Have Done

Accountant vs. Bookkeeper: What Do They Do for Your Business?

To begin, accountants and bookkeepers are involved at various phases of the financial cycle, with a bookkeeper tending to adhere to the day-to-day procedures and an accountant serving an additional different role at reporting, tax filing, and analysis. Let’s take a look at the roles of an accountant and a bookkeeper to have a clearer comprehension of what each expert can improve the situation of your business.

Functions of a Bookkeeper generally DO

Bookkeeping requires at the prior phases of the financial cycle. A bookkeeper’s job is to oversee and log the day by day financial transactions of a business, which include sales, buys, and payments, receipts. Be that as it may, a bookkeeper can also be liable for other tasks, such as completing payroll and checking accounts receivables and working with supervisors and controllers to ample monthly financial closings.

The role of a bookkeeper is frequently subject to the extent of the business and the number of transactions the business makes day-to-day. A bookkeeper’s tasks are likely to increase as a business grows and as the company’s financials get more difficult.

There are a various Enterprise-level bookkeeping software is able to generate the custom reports or complete financial documents that previously fell under the obligations of an accountant. This converging of the two professions means a business that doesn’t have confounded financials can make do with utilizing bookkeeping services most of the time and only hire an accountant when it’s time to auditing and tax preparing.

Functions of an Accountant vs. a Controller

Accounting majorly deals with interpreting the data generated by appropriate bookkeeping. The essential functions of an accountant incorporate analyzing financial statements, completing income tax returns, and helping entrepreneurs and business owners understand all the tax and budgetary controls that apply to their organization.

Controllers likewise help business owners have a superior comprehension of their business’s financial health. Controllers convert a bookkeeper’s data into different financial reports that detail the organization’s financial standing, including its benefit and income. Entrepreneurs likewise depend on their controllers for financial estimating and also planning and examination.

Which Financial Professional Is Best for Your Business?

The choice to utilize an accountant, bookkeeper or both is resolute by the size of your organization, the difficulty of your activities and financials, and the demands of your business. If you’re CPA or Accounting firm and need to hire remote working bookkeeper or accountant when it is time to file taxes or generate end-of-the-year financial reports may be all the accounting help your business needs. Companies like Entigrity can help you to find the best resource depends on your needs and save up to 75% compared to hire in-house resource.

To get more info about remote staffing for accounting and bookkeeping needs. Feel free to visit our website www.entigrity.com or email us your staffing needs on info@entigrity.com

Read more: 5 Keys Skills Helpful for Budding Accountants Outgrow Their Peers


Data Breach – Recovery Tips for Accounting Firms

If you are an accounts or finance professional and are in possession of sensitive client data, then it is quite evident that you are at the top target of data thieves. More often than not, accountants keep coming under the scanners of hackers and evidently become a victim of cyber security attacks. Once ranked as the best cyber security consultant in the world, even Deloitte admitted in March 2017 to be one such victim, apparently indicating that you always have got to have a plan B in place if things go wrong. If a company like that can be attacked, anyone can. More importantly, each breach leaves a lingering, if not lasting, imprint on an enterprise’s brand.

However, the best thing to do in this situation is to recover as fast as it could be. With proper response planning and vigilant approach the recovery could be faster and a lot of damage can be saved.

Evaluate the severity and scope of the incident.

If a laptop computer or other portable device is lost or stolen, identify the data that may have been exposed, and determine whether these materials are protected by password or encryption. Consider engaging forensic information technology experts to determine the scope of the problem. In addition, if the possibility of identity theft or other criminal activity is present, inform appropriate law enforcement agencies of the situation.

Having an incident response plan:

As soon as a data breach is discovered, the response plan must get in action. Generally the best approach is to take all the working devices offline and deploying the IT team (or consultant) in action. The most important information to find out as quickly as possible is the exact nature of the breach, the extent of the damage, and who’s responsible for the breach. When creating your response plan, you may want to create responses for a few different levels of data breaches, with detailed response steps laid out for each type of breach.

This plan should outline what you need to do and whom you need to contact after a data breach. It should be a step-by-step guide to what you need to do to comply with state and federal laws and inform affected customers about the incident.

Informing the potentially affected clients:

A very important and critical decision to inform the client about such mishaps. Although it is understood that your firm’s credibility could be at risk but it has to be done anyways. That’s because data breaches aren’t just about lost data. They’re about lost trust. And small accounting firms rely on that trust to maintain their client base.

When you’ve built up a client base over years of hard work and have to inform them that their Social Security numbers and financial records are now in the hands of criminals looking to commit fraud

Deploy Software Defines Perimeter services

Enterprises need to constantly assess the latest advancements in network security as well. Software-Defined Perimeter (SDP) services, for example, block communications between enterprise applications and end user devices from potential attacks through the Internet. SDP reduces security risks over the Internet by making critical applications and resources invisible to everyone until the end users and devices are authenticated and authorized. Such advancements are designed to reduce potential data breach incidents as more companies adopt new technology.

Moreover, during the recovery process, one should learn from the past incidents and make sure to follow more stringent protocols to not let such havoc repeat itself again. Some of the steps that can be taken are:

  • Require two-factor authentication for access to email from the Internet.
  • Require Virtual Private Network (VPN) access for telecommuter and travelers accessing company networks. Encourage travelers to note travel device usage times, locations, and other details including connections and accounts used.
  • Limit administrative access for employees to their devices; if admin access is required for job function, enact a policy restricting use or installation of non-approved third-party apps.
  • If possible, provide employees with travel devices that can be rebuilt upon return; limit access from these devices and keep known baselines to expedite digital forensic review.

We also suggest having a few practices and policies in place to avoid such mishaps coming your way, such as keeping operating systems, antiviruses, firewalls updated; having strong password policy, usage of secure devices with tracking facility; backup data must also be encrypted, etc. A lot of troubles can be escaped through if you have trained employees and limited admin rights. The more you are informed, the better you are secured.

Read more: https://www.entigrity.com/recovery-tips-for-accounting-firms/

Shaping Your Business Model – 6 Markers to Determine Your Path

The accounting firms of today have grown into multidimensional entities. Growth, marketing, building bigger client base, offering more services are now equally as important as managing their current practice. Since the modern economy has converged to become a central marketplace irrespective of geographical boundaries. Partially, it’s possible because of easier market entry created by advances in technology and communications infrastructure, restructuring of product sourcing arrangements, the emergent availability and shifting costs of global labor pools, along with continuous restructuring of capital markets and the rise of new economic powers. With such prevailing conditions, an accounting firm requires to have a dependable business model for ensuring it survival, growth and longevity. Let us look at the 6 crucial markers that may guide your practice towards success.

Building Client Base:

Any business thrives and grows only because of its loyal customer base. You can choose to have more number of services for your clients or, you can select to have lesser services and equally focus on important activities such as customer engagement programs and value-added benefits for loyal, long-term clients. Today, clients will flock to any firm that focuses more on their needs along with hearing them out and providing value-added benefits apart from their services.

Choosing Business Type – Niche v/s Diversity:

Choosing the type of business depends on your clients, and requires a qualitative approach towards identifying their requirements. There are Pros and Cons to both approaches. However, the only important idea is to understand and plan who you want to cater the most; large volume of clients with higher volume of sales at marginal profits, or few clients with proportional sales with higher margin at profits. Pick Your Choice!

Workforce management – Contracting v/s Hiring  

No manufacturing unit or business can run without any labor for the functions and needs of that business. Seemingly, today’s firms have various options at staffing, such as contracting or hiring work force for their organization. Outsourcing/contracting is convenient. You select vendors and appoint them for certain remuneration to complete and deliver non repetitive work. It’s quicker with lesser liabilities. Hiring, on the other hand, is a longer process with aiming to retain selected candidates for longer duration, and viewing them move up the hierarchy (based on their skills and performance) within your organization. Today, there are 2 different options within Hiring — local staff, and remote staff. Hiring local staff is the age-old traditional means of recruiting personnel for respective positions. Hiring remote staff of Accounting firm is the latest trends where you get numerous facilities, flexibility, and benefits over traditional method of hiring local staff. Today, remote staffing has become a popular choice for several types of industries, which translate into additional benefits such as saving on costs, time and efforts, along with round the clock available work force, lower infrastructure costs, etc.

Cutting cost v/s Rational Investment

Running a business requires shrewd skills when it comes to managing finances. Apart from the fixed costs incurred at the beginning and daily running of the business, variable aspects such as capital or cash flows, liquidity, running capital requirements etc. take more precedence during planning and decision-making. One can have a cost cutting approach when it comes to operating business financials, such as investing lesser, or acquiring assets, labor, equipment, etc. or cutting down on existing such functions of the company such as laying off labor, cutting down on inventory and assets, etc. All of which is only limited by only whatever finances you can spare or arrange for. Alternatively, one can choose to make wise decisions on planning and investing wisely such as when there are good offers on purchasing assets, or planning ahead of peak season for acquiring raw materials or labor, etc. It all depends on the business acumen of the management of the company. Nonetheless, one should observe and predict future possible scenarios, think twice, plan ahead, and decide wisely in matters of business finances.

Marketing – Digital v/s Conventional

Today, no other means of communication reaches out to potential customers as digital marketing does. People around the globe are connected to each other through digital devices. As of today, digital networks is the only medium through which, any sort of information propagates almost without any delays. Moreover, there aren’t any obstacles in reaching out to people scattered across geographically over enormously long distances. These are vast benefits of digital marketing over traditional forms of marketing. Today, Digital Marketing campaigns are designed at utilizing minimal capital and efforts, and delivering higher ROI in shortest possible time frame. Most conventional marketing plans costs significantly higher, while not being able to reach out to maximum potential customers at all. This is why digital marketing today leads all forms of marketing, making them supplemental options to digital marketing. However, the approach shouldn’t be to quit the conventional marketing completely, as this method may bear fruits, but some budget out the hefty sums can be diverted towards digital means as well. This will balance the expenses very much and give a higher ROI.

Self Expansion v/s New Acquisition

Getting ahead in entrepreneurship, you might go ahead with increasing the practice in newer regions. Alternatively, you can also develop other value added services according to new market. Thus, you can go about growing your business by expanding your own firm’s capabilities to fill in this market gap, and benefit from the lack in any products thereof. On the other hand, you can even go about having a merger or acquisition with another business organization who exists in the industry and has significant standing and loyal customer base for continuing operations of those particular services. In the former case, it will take you time, efforts and capital to reach to the position for catering to different opportunities as and when they make their presence in the market. With acquiring or merging with an existing firm, you have the added benefit of an already established organizational unit, and simply take the reins of management and lead the running business operations.

End Note:

To have a successful business organization, all it takes is precision business acumen, informed and wise planning, forecasting, calculated decision-making and all possible forms of risk management.