BusinessInsights.

What is Managed Accounting?

Alex Detweiler | May 11, 2022 | Accounting | 12 minutes to read

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Whether you own your own business and work from your home or you run a large enterprise, there are countless responsibilities competing for your attention each day. You’re also juggling a number routine tasks like responding to calls and emails; working with vendors, suppliers, and partners; upgrading software; taking care of your bookkeeping; and keeping your finances up to date.

You may have wondered whether there is a more efficient and powerful way to manage your small- to medium-sized business’ bookkeeping to help you spend less time on menial tasks while actually getting more accomplished. Enter – managed accounting.

Managed accounting offers a new approach to accounting and bookkeeping for your business. It can scale as your business grows and simplify the complex, seemingly never-ending tasks on your to-do list. Interested in saving both money and time? Let’s walk through what managed accounting is and what it can do for your business.

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3 Pillars Of Managed Accounting

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To reach your goal of doing less while accomplishing more, you’ll need to leverage the three core elements of managed accounting: software, technology, and people. The managed accounting platform KPMG Spark, brought to you by NEWITY, calls these the Pillars of Managed Accounting. Now, let’s take a closer look at each of these 3 managed accounting pillars.

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(1) Cloud-based software

All of your managed accounting services operate within an online access portal. The portal also coordinates all communication with your human bookkeeper (which can include texts, instant messages, emails, and phone calls – more on that later). The software provides a user-friendly, always up-to-date dashboard of your current information, plus customizable reports (view, download, or print) and in-depth charts to analyze your business transactions.

(2) Automation technology

The KPMG Spark managed accounting solution is a proprietary, automated technology platform that’s “always on” – it runs in the background, enabling you to save time you would usually spend on tedious tasks (e.g., booking debits and credits, categorizing transactions, etc.).

The system uses advanced machine learning and artificial intelligence to instantly (and automatically) categorize and record your transactions, giving you access to real-time reports on your business.

(3) Real, human accountants

We believe in the power of humans accompanying powerful technology. While your automated system is running in the background, you can tap into the powerful network of KPMG Spark accountants any time you need help. A dedicated bookkeeper is assigned to your business, and they take care of the day-to-day accounting and bookkeeping so you don’t have to.

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Alex Detweiler, VP of Accounting Services at NEWITY, notes in reference to the second pillar of automation technology that “this is a particularly massive development for small businesses. Rather than staying up late to spend hours you simply don’t have on bookkeeping, a managed accounting platform allows you to focus on projects that grow your business – all while accounting tasks are handled behind the scenes.”

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Pillar #1: Cloud-based software

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KPMG Spark developed cloud-based information software that serves as your managed accounting portal. This pillar provides all the tools you need to simplify accounting for your business, including:

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Business dashboard

Spark’s managed accounting software has a customizable dashboard, so you can see a simple overview of all your most important accounting data points at any time.

Communication options

The KPMG Spark portal also provides you with easy access to your human accountant (pillar #3). Text or instant message your dedicated bookkeeper directly in the software, or get in touch outside the system via phone or email.

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Data and account management

With this information software pillar, your business has complete control over how your managed accounting services are handled. Easily set up alerts or emails with customized reports or automated status updates on your services. You also have full visibility into and control over your data: go inside the portal at any time to view, input, or edit individual data entries or transactions in your account.

Reporting and data visualization

KPMG Spark’s managed accounting service makes it easy to access accounting reports as well as helpful data visualizations of your information. View your reports online for a quick snapshot of where the business stands at any point in time, or download/print to share with other stakeholders.

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Pillar #2: Automation technology

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For pillar #2 of managed accounting, KPMG Spark worked with data scientists and technology developers to build their automation technology – all to help you and your business save time. Here are the areas in which pillar #2 can make your life easier:

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Automated bookkeeping

Spark’s machine learning technology performs real-time analysis of your accounts and categorizes every aspect of your financial activity: revenue, expenses, assets, liabilities, and owner’s equity. This way, you have access to up-to-date financials anytime you need them.

Payroll

Managed accounting also enables you to link payroll processing with your books and records. KPMG Spark automatically processes your local, state, and federal payroll taxes and connects them directly to your financials.

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Documentation

It’s common for businesses to struggle with documentation – receipts, invoices, etc. – and to know how they should organize and retain these files. Managed accounting takes this off your plate. The KPMG Spark platform stores all your transaction documentation; plus, you can view receipts, invoices, and other supporting documentation immediately if you need them (i.e., if you get any questions from tax authorities).

Tax preparation

Managed accounting platforms like KPMG Spark (brought to you by NEWITY) also address the issue of tax preparation so you can save time. The platform automatically uploads accounting information to easily prepare your business and individual tax returns.

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Pillar #3: Real, human accountants

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Technology and automation are crucial to free up more of your time, but the business should not rely solely on these. That’s why the third pillar of managed accounting brings in human accountants with the specialized expertise your business needs. KPMG Spark refers to this as having a “human-in-the-loop”. Your human accounting team should have the following traits:

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Knowledge

Experts who understand your specific business and can answer your accounting, bookkeeping, or tax questions.

Dedication

Having a dedicated team for your business is key – no call centers with unfamiliar representatives.

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Specialization

For those moments when you have to address new questions for your business – like whether you qualify for the Employee Retention Tax Credit, what happens after obtaining a Paycheck Protection Program (PPP) loan, or whether you have to collect and pay sales tax for a new customer – it’s important that your managed accounting team can answer them.

Availability

The human or humans on your managed accounting team need to know your business inside and out and be available every day to help you navigate any questions that may arise.

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Immediacy

Many outsourced accounting or online bookkeeping services focus mostly on preparing monthly financial statements for your business. While that’s important, you should also be able to access those statements at any time you need, in real-time – even today.

Resources

KPMG Spark has access to over 30,000 specialists in the United States. No matter how complex your question or issue, there is a team of people available to help.

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Why use KPMG Spark through your NEWITY portal?

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With managed accounting, you can:

 

  1. Reduce time spent on administrative and accounting tasks
  2. Free up time for more important business activities (i.e., revenue-generating tasks)
  3. Save money – it’s affordable
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Through NEWITY, you can get access to managed accounting services that were previously only available to large enterprises. With KPMG Spark, you’ll have all the resources and experience of a Big 4 accounting firm backing your dedicated team.

When you sign up with KPMG Spark, brought to you by NEWITY, you’ll get a dedicated accounting team, available to answer questions on any topic from bookkeeping to tax advice.

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To learn more and get a free KPMG Spark quote,
visit KPMG Spark in your NEWITY portal.

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