What is Managed Accounting and How Can it Help Small Business Owners?

December 13, 2022
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Business Basics

Many business owners operate out of fear when it comes to their finances.

"If I don't think about how much I make and spend, I don't worry about it."

We often feel a frightening sense of comfort based on ignorance; if money is not on your mind, you can focus on building your business, right? That is until not knowing becomes a problem.

Maybe bookkeeping is too tedious for you to manage by yourself. Perhaps your CPA only connects with you once a year to review your taxes.

Or, your business is so complex that you feel like you need a financial department but don't know where to look.

Managed accounting provides the clarity and confidence in the financial information you need to run your business. Managed accounting combines the best of cloud-based software, automation, and human insights into an accessible, outsourced solution.

At the core, excellent managed accounting helps to tell a clear and concise financial story.

Cloud-based Accounting Software

Paper records are a thing of the past.

While there is still much progress, the accounting industry has begun to shift toward cloud-based platforms that enable collaboration and real-time data. Instead of relying on pen and paper ledgers, accountants now use platforms like QuickBooks Online or Xero to collect information and synthesize it into actionable insights.

Cloud-based information allows business owners and managed accountants to draw more insights in a much more timely fashion.

Many legacy accountants are held back from providing excellent service by the limitations of their systems. By combining cloud-based accounting software with a dedication to timely communication, modern accountants can become more proactive in guiding a new business!

Data can revolutionize your business when used correctly.

Cloud-based accounting software allows accountants to collaborate directly with you, as the business owner, on the data being generated by your business.

Instead of your financial information being locked away, inaccessible, or only reviewed annually, you have instant, 24/7 access. You can actively see change in your business, removing financial confusion.

Software also allows us to visualize and understand connected data better.

For example, by combining insights from cloud-based billing software with the real-time data generated by an accounting system, a managed accounting service like Amarlo can create detailed budgets and projections that help to guide decision-making.

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Automations that Tell a Story

Cloud accounting is interconnected.

Platforms like Zapier allow for the flow of information between systems, creating an integrated system that allows business owners and accountants alike to cut down on monotonous tasks like data entry.

Payroll systems like Gusto and Rippling, billing platforms like Stripe and Square, and even project management systems like Dubsado have direct connections to cloud accounting platforms like QuickBooks, enabling a connected data ecosystem that can be tapped into and interpreted with the right know-how.

By working with an excellent managed accounting service provider, you can begin to understand the parts of your business that can and should be automated.

Instead of continuing to cut and mail checks to vendors, you can easily use a bill pay platform like Melio or Bill.com to digitally authorize the mailing of checks or initiate wires.

Tired of employees constantly having to email management regarding reimbursable expenses? You can quickly and easily automate the process through platforms like Expensify.

These platforms don't just replace the legacy tasks that you've spent so much time completing in the past. They provide more effective insight, time savings, and scalability as you build your business. Leveraging these platforms can help you save money in the long run.

With software, we can create a truly connected world of information that automatically communicates data back to your accounting system, ensuring that every transaction gets recorded properly.

The ecosystem of your business can finally be completely connected.

Vital Insights from Real People

Cloud-based accounting can give incredible, timely insights.

Automation helps your business be far more efficient and effective by saving time and growing with your team.

What ties these components of managed accounting together is critical: a human touch.

While data can produce a lot of valuable insights and information for your business, it takes more than just numbers on a screen for a difference to be made.

As a business owner, you need interpretations of the data generated by your business that you can actually understand. Combining your intuition of your business's performance with financial information has a considerable impact.

Instead of just an accountant or bookkeeper, your business benefits far more from a team of professionals that can advise and guide you every step of the way. You need a team well-versed in helping you understand your business's financial story.

By working with a team of managed accounting professionals to deeply understand your business, you can unlock confidence and clarity and build a more successful organization.

Amarlo Does Managed Accounting for Service Businesses

We believe your business tells an incredible story that can only be unlocked by profoundly understanding your finances. By using the techniques of managed accounting (software, automation, and people), we help small business owners unlock confidence and clarity.

Instead of acting as a team of accountants alone, we work as financial coaches to help educate you about the business you're building consistently.

Our goal is to help you pair your intuitive understanding of your business with accurate, clear, and concise data so that you can understand the financial story that your business is writing.

Unlike many other managed accounting services, Amarlo helps facilitate integrations into QuickBooks Online with many of the most beloved tech platforms that small business owners are already using.

We're a coach who fuels confidence, clarity, and growth.

When you start working with us, we'll begin by reconstructing your financial foundation. We believe in a concise and relevant accounting system that allows your business to scale efficiently.

Together, we'll work to create goals, a budget for your business, and financial forecasts that allow you to make predictions about what's to come. We pair your deep understanding of your business as it is today with your vision for tomorrow.

Finally, we track your progress toward your financial goals and consistently meet together to ensure that you receive timely and insightful feedback from our coaches. Our team helps you approach problems informed by the data within your business, leading to excellent business decisions.

Together, we can transform your business and unlock your financial story.

Schedule a call today.

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Jeremy Millar
Written by:
Jeremy Millar

Amarlo helps entrepreneurs combine intuition and accounting.

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