Small business accounting updates

Advancing technology continues to change our small business accounting systems at an ever increasing rate of change. Here are two major recent items:

PAYMENT SYSTEMS: Last year I set a goal of moving all payment systems to EFT ((Electronic Funds Transfer) and away from paper checks by postal mail. There are many advantages: improved speed, better tracking, lower cost, automated communications to sender and recipient, etc.) I tested several business payment systems and even got certified in one ( That transition process is now complete. I recommend that everyone should make the switch. A side note: business payment systems are different from personal payment systems like Venmo, but this field is changing rapidly.  I expect that eventually everybody will. Good payables policies and practices are critical; see this post for more.

BOOKKEEPING: Most small businesses, including mine, use QuickBooks for financial bookkeeping. Inuit is increasing the price of QuickBooks again next month. Again, I’m testing alternatives. The key is bank and other technology integration. But the differences in data privacy – especially in potential tax conflict situations – could be much more valuable. I expect this time I will make a change. Stay tuned.

PAYROLL: We see a trend away from “payday every Friday” type systems to flexible pay on demand depending on varying business contracts. The banking, accounting and security process is the same but payroll service contracts and technologies must evolve to accommodate this trend. I’m finding greater use of text message based payroll accounting.