Tracking expenses with modern technology

Tracking Expenses with Modern TechnologyAdam Greene, CPA

Tracking Expenses With Modern Technology

As with many industries, the essential tools required by most accountants vary depending on the needs of their clients. This makes having computer software versatile enough to fit the needs of both small businesses as well as larger corporations crucial for any certified public accountant. A number of CPAs also take advantage of helpful financial calculators, email, and other communication methods for quick response. They may even use updated legislation materials for educating their clients on changes in the law and items that demand their immediate attention. Meanwhile, for those clients who may not be quite so tech-savvy, letter communication might be necessary.

Using the Tools of the Trade

Business owners may need convincing that paper-based documents are out of date and are extremely difficult to maintain within the business. Using cost analysis tools, such as a hidden cost calculator or other financial presentation, a CPA can show the client how paper documents cost more than electronic records when managing accounts receivable and other business records. Upfront capital, such as maintaining an internal network and website administration, may give the client enough incentive to let a CPA exercise his expertise and manage the financial system.


Tracking expenditures requires record keeping using a software system best suited for the business. Some systems are more appropriate for smaller businesses, while others may be expandable to larger companies. Choosing a suitable software system for the type of business and the transactions it performs helps maintain financial records while creating a realistic representation of the overall financial health of the business. Avoid the frustration of making the transition by hiring a CPA who can choose the best option for the business and be able to explain the financial outlook using the various tools available.

When business owners attempt to navigate financial data management systems on their own, they often lack the expertise needed to accurately adjust items such as payroll systems to meet current tax rates for state and federal deductions. They may also struggle with or forget to budget for potential fees assessed by the IRS. A seasoned CPA can advise clients on these types of financial operations, providing information and guidance on how to comply with any necessary regulations, thereby curbing the risk of unexpected penalties down the line.


Popular and Inexpensive Software Systems

Using a software system for accurate financial documentation isn't always as easy as one imagines. Owners may need a CPA to integrate the software system into normal business operations. A CPA provides accounting expertise, but may also help save time and money associated with purchasing monthly access to the financial records, at least until the system is fully integrated into the business. By using innovative cloud-based platforms, a CPA can also eliminate the need for internal administration and upfront capital costs.


Among the most popular financial software systems listed in 2015 are some long-time favorites such as QuickBooks Online, introduced in 1992. Providing both traditional and new technology features, such as real-time data and mobile app technology, QuickBooks allows users to access various platforms. With invoicing capabilities, real-time capabilities, and tax management features, QuickBooks provides all of the expected features and offers new cloud-based storage. At $12.95 per month, users can take advantage of a 30-day free trial to help with integrating the software.


Xero, a financial software system with a monthly fee of $9, offers access to an unlimited number of users, which is a plus for those budgeting for access license fees. However, the monthly fee changes after the promotional period of six months ends. This system also offers a 30-day free trial for new users. If transitioning from QuickBooks, Xero extends data conversion from QuickBooks for new users. Updates also occur in real time, and the software links directly to the financial data through a cloud-based platform. Xero works well for small businesses.


Another low-cost financial software is Sage One Online, at $9 per month. This software is ideal for businesses run by only one person. The $9 fee provides invoicing services and online payment access, but if other accounting services are requested, the fee rises to $14 per month. The added cost allows access to project management tools, including projections, time tracking, and expense reports. Sage One caters to small businesses.


For comprehensive customer relationship management, consider using FinancialForce, which is fully compatible and potentially integrated with Salesforce software. Mobile access, human capital management, supply chain management, professional services automation, and financial management are all features of this software. Expandable to larger companies, Financial Force provides free online demonstrations for business owners to assess the product instead of investing without knowing whether it is a proper fit for the business.


At the end of the day, seasoned CPAs possess the know-how needed to easily recognize what's best not only for thriving businesses, but startups too. Trusting both their experience and the time-tested tools at their disposal eliminates having to guess whether cheaper options are falling short for your business.

Economy & Finance

Tracking expenses with modern technology