The evolution of bookkeeping and how it changed small business accounting

1 May 2017

Before the 1980’s, bookkeeping was a very laborious process as it was all done by hand in ledger books with double entry columns. If a business did not have it’s own in-house bookkeeper, once per week, business owners would bring their papers to the bookkeeper to review the receipts for the week and enter them into the ledgers. Once per year, the bookkeeper would also prepare and sign off on the business’s taxes, prepare the yearly statements and set some budgets for the year ahead.

​Then, in the early 80’s, the invention of accounting computer programs such as Visicalc set the bookkeeping world on it’s ear as it used simple spreadsheet programs to cut the need for calculators, paper ledgers and pen/pencils. The bookkeeping tasks were able to get done faster with a lower margin for error.

In 1998, Quickbooks® revolutionized the bookkeeping industry as it simplified and automated the bookkeeping function for small business owners who had no formal accounting training by offering a software program that could run on a desk-top computer. Quickbooks® is still the most popular accounting program in the U.S. with almost 4.5 million companies using Quickbooks®.
In recent years, SAAS (software as a service) has taken on a vital role in the bookkeeping industry by moving bookkeeping from desk-top computer hard drives to web-based and cloud based secure hosting locations where clients and bookkeepers can collaborate on the same information no matter where they are located.

Online accounting solutions can help small business owners like you keep control of your finances, be more productive, reduce risks and allow you to actually enjoy your business.
GMAC Accounting is a full service virtual accounting and bookkeeping firm. GMAC began operations offering traditional accounting services, supplementing the back offices of local small businesses. As business operations have progressed into ecommerce, it was evident that small businesses could increase net income by shifting key operations to seamless online systems. GMAC has since evolved into a 100% online cloud and bookkeeping service provider. There are 6 big reasons GMAC Accounting should be your provider of choice.

1. A Team Works on Your Books, Not a Single Person.

Traditional accounting software allows access to only a single user. Cloud accounting technology allows key people in your business to stay connected to their data and your bookkeeping service in real time, without having to wait for files to be printed, posted, emailed, shared etc. At GMAC, a team of qualified finance professionals’ work on your bookkeeping/accounting needs. With collaboration comes greater transparency, a real time understanding of where your business is at and, subsequently, the ability to make better and more informed business decisions.

2.The Use of Top of the Line Accounting Software.

Each member of our team is certified in Quickbooks ® and Xero Accounting software to provide you the best advice possible.

3.Anywhere, Any Time, Real Time Access.

With cloud accounting you can access financial information and vital business data anytime, anywhere. Your bank and credit card transactions can be downloaded by the bookkeeping service to compose the most accurate statements and invoices for your reporting purposes.

4.Data Security.

The security of your data should be your top priority and that’s why cloud technology is the right choice! If a company laptop/phone/tablet is damaged or stolen, no one can gain access to your data unless they have your login and password details. All things are stored in the cloud, meaning your data is backed up across multiple servers; so you never have to worry about losing data.

5.Cost Savings.

GMAC is able to offer cloud accounting and bookkeeping services to small businesses at a fraction of the cost of hiring a traditional “in-house bookkeeper”.

6.Simplification and Improved Cash Flow.

Simplify your back office with modernized systems for a monthly fee, virtually administering all back office operations that would traditionally be handled by an in-house hourly paid employee. Payroll, Accounts receivables and accounts payables are automated to ensure quicker processing times, no missed vendor or tax payments and continuous monitoring of cash flow.

Time and money don’t have to be an obstacle to attaining financial health for your business. GMAC can customize an affordable financial solution for you based on only the services your business needs, whether that be bookkeeping, bill pay & invoicing, payroll, reports, consulting services or even the services of our virtual CFO.