Bookkeeping apps and automated money movement way to the future

August 2, 2022 | Sakshi Sharma

Cash flow is the core of any business and a pointer to how much money is coming in and going out. If you manage cash flow and payments well, you can address basic concerns like: When can you expect to access the cash you need? How can you increase the cash flow and get it faster? What can you do to ensure you don’t run into roadblocks through over-spending?

Simple accounting apps can help keep track of incoming and outgoing payments while gauging profitability and prepping up for the tax season.

Cashing in on technology

A 2019 Sage report reveals that about 90% of accountants feel that accountancy is undergoing a cultural shift that is leaning more toward technological adoption.

The report attributes it to marketing demands, regulations, generation change, and client demands, along with investments that businesses make to keep pace with the accounting world.

The ongoing pandemic has also brought about changes in work environments which have made the accounting processes more automated.

Bookkeeping apps create a cash flow model which can streamline operations while keeping an eye on the overall financial health of their company.

And that brings up another question: How do apps manage cash flow?

Cash Flow Statements

Bookkeeping software for small businesses generates immediate cash flow statements through a breakup of various cost components like net income, additions to cash and depreciation, increase in accounts payable, and increase in accounts payable which come under ‘Cash Flow from Operations’ while ‘Cash Flow from Investment’ includes the purchase of equipment and ‘Cash Flow from Financing’ notes payable. A quick scan through this statement gives the business a comprehensive picture of the cash coming in and going out during a particular period.

A cash flow model helps companies stay on top of their bookkeeping and determine whether they need to increase their cash flow or cut down on spending.

A simple cash flow app also shows them how to speed up payments from clients and deposits from payment processors.

The famous saying, “Revenue is vanity, profit is sanity, cash is reality” underlines the importance of cash flow and a mobile bookkeeping app to manage spreadsheets and understand tax management.

6 % growth

According to a report by Fortune Business Insights, the accounting software market will experience a higher level of growth in the years ahead. During the forecast period of 2020 to 2024, Businesswire 2020 has predicted that the market will grow at a CAGR of 6%, taking into consideration the effect of the pandemic on the industry.

High five and a QuickBook

You don’t have to build an app for cash flow. There are plenty of mobile bookkeeping apps already available in the market to choose from. The five very best bookkeeping software for small businesses in 2022 are:

• Best Overall: QuickBooks Online

• Best for Micro-Business Owners: Xero

• Best for Service-Based Businesses: FreshBooks

• Best for Part-Time Freelancers: QuickBooks Self-Employed

• Best Free Software: Wave

Look to the future

With 28 years of experience in helping small businesses, the leader of the pack, the Quickbooks accounting app, is used by 7 million customers globally. All accounting features can be conveniently accessed on one main dashboard, making bookkeeping easy and efficient. The software is cloud-based and can be accessed through a web browser or through the mobile app.

The small business bookkeeping app has a range of offers. Simple Start, one of the most reviewed, meets the needs of most service-based small businesses while Plus or Desktop Pro Plus offers product-based small businesses more options for inventory management, time tracking, and customization. The advanced plan provides robust financial reporting that is powered by Fathom, popular with many large global companies.

All plans allow integration with third-party apps such as Stripe or PayPal.

According to Future Firm, there is a 98% chance that bookkeeping, accounting, and auditing clerk jobs will be automated in the future.

While North America is arguably the world’s best in this industry, even Asia Pacific is driving the growth of accounting software companies with a simple accounting app becoming the new buzzword.

Digital wallets are in demand

In the digital age, electronic payments are also taking us towards a cashless economy. There is a growing need for money movement apps that can help in the digital transfer of cash, pay bills online, and aid mobile recharge while monitoring automatic payment status in real-time.

Using automated money movement is safer than writing checks as you don’t need to reveal your bank account number and routing number to the recipient. Some apps offer additional protections, like QR-code scanning, text or email verification, unique user IDs, and profile pictures.

Factors like cost, transfer speed, and international capabilities come into play when choosing the best payment operations platform.

Some of the top choices as far as a global payment app goes are:

Best between friends: Venmo

Best for bank-to-bank transfers: Zelle

Best for flexible payments: PayPal

Best for budding investors: CashApp

Best for sending money internationally: Remitly

The growing demand for money movement apps is underlined by the fact that according to Research and Markets, the world’s largest market research store, the Global Automatic Transfer Money Market is estimated to be $25.3b in 2021 and expected to reach $37.69b by 2026, growing at a CAGR of 8.3 %. North America is projected to lead the market.

As we move into a whole new digital world, the above-mentioned top-rated apps help you manage money in a way that facilitates both companies and the common man who has a genuine need to automate money movement.

Do you aspire to be part of this growing industry? We can help you create this app or even design a website to promote your product that might end up being an award-winning one in the future. Trust our experienced web developers to give you the marketing edge. Feel free to write to us at team@sdi.la or call us at +1.408.621.8481.

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