Accounting software makes it easier than ever for businesses to manage the financial wealth of their company.
While it is an alarming statistic for any business owner, they should understand that cash flow is not some convoluted concept that only the most experienced businesses can master. It simply comes down to establishing strong accounting practices within your company.
Small businesses, large enterprises and professional accountants can all benefit from understanding the trends of accounting solutions so they can cut costs, improve time management and be better prepared for future changes in accounting.
To better visualize the impact that strong accounting practices can have for your company, we have compiled 30 accounting statistics for you to analyze:
Small businesses are the most susceptible to poor cash flow management. Coincidentally, small businesses account for 99.7 percent of all businesses. Understanding how to utilize small-business accounting software and manage your money efficiently could be the deciding factor in keeping your business afloat:
Cloud accounting is steadily shifting the landscape of accounting away from the desktop and into the cloud. Cloud accounting saves companies plenty of money and storage space by allowing users to access the software via the internet instead of having to install the software across every employee computer. New research data illustrates the benefits and trends of cloud accounting:
A big pitfall for many businesses is defaulting on their accounts payable. When another business charges you for a service, they send an invoice (bill) to your company, and this invoice gets routed to your accounts payable. This is when your company racks up a bill or charge on its credit and must pay back the short-term debt. While this can seem like a lot of payments to keep track of, accounts payable automation software (AP automation software) can make the whole process painless and keep your company cash flow in a healthy state. Relevant accounts payable statistics include:
Accounting automation platforms allow accountants to skip the mundane tasks of accounting such as invoices and bill charges. With more accounting tasks being automated, accountants will be able to utilize data from technology and apply it to real business decisions with more speed than ever before. Understanding how to save time is useful for accountants to understand so they can keep up with customer and business demands:
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Artificial intelligence integration with accounting platforms offers uses such as automated data entry and data categorization, as well as AI accounts receivable. Not keeping up with AI accounting trends can cause your business to fall behind with slower work times. These statistics show that accountants are using AI to identify areas of redundancy and increase efficiency.
The statistics speak for themselves: Accounting can have a positive impact on the financial health of your company, save you plenty of time and improve your cash flow.
Furthermore, to stay competitive, small businesses and accountants must be aware of how the accounting world is rapidly changing to adapt to the AI and cloud accounting revolution.
Businesses can utilize plenty of free accounting software, or even look to accounting firms to handle their company finances. Either way, accounting is a core practice that every company needs to be aware of to keep cash flow moving.
Ready to learn more on accounting? Learn the best practices for having a positive cash flow in 2019.
Mike is a market research analyst focusing on CAD, PLM, and supply chain software. Since joining G2 in October 2018, Mike has grounded his work in the industrial and architectural design space by gaining market knowledge in building information modeling, computer-aided engineering and manufacturing, and product and machine design. Mike leverages his knowledge of the CAD market to accurately represent the space for buyers, build out new software categories on G2, and provide consumers with data-driven content and research. Mike is a Chicago native. In his spare time he enjoys going to improv shows, watching sports, and reading Wikipedia pages on virtually any subject.
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