Industries

Whether you’re already operating as a VAR and looking to transition to the world of MSP, or you’re just setting up your business and wondering which is better, a thorough understanding of these two acronyms is going to help you out. Both VAR and MSP businesses operate in the business and technology services industries but refer to different types of businesses and business models. This article is going to take a closer look at both VAR and MSP to help you determine which business model is right for you. Take a look now to learn more. VAR Vs. MSP: The Basics 🧑‍💻 Even if you’re already operating as a VAR, you may find that the MSP acronym leaves much to be imagined. It can be difficult to get your head around what both these business models actually entail and how they work when put into action. Below is a basic overview of both VARs and MSPs to help you fully understand what each business type entails. What Is VAR? Source: LinkedIn VARs, or Value-Added Resellers, are businesses within the business services industry that resell tech products, like software, to other businesses. Rather than just being a middle-man, though, these businesses add value to the products before selling them, often including services like customization, integration, and support. VARs focus primarily on sales and selling the tangible products that they stock. They make most of their month through the resale of products, and additional revenue comes from the value-added services that they provide. VARs can be on-site and cloud-based businesses and often aid both large enterprises and SMEs. VARs are attractive to clients looking for a one-stop experience, i.e., if they have an extensive project and need lots of different software products, they could go to a VAR to ensure all their needs are met in one simple transaction. What Is MSP? An MSP, or a Managed Service Provider, is a business that provides ongoing and proactive management of a company’s IT, infrastructure, or end-user systems. Services MSPs offer can vary but may include network monitoring, security, data backup, customer support, and more. When compared with VARs, MSPs are much more service-oriented. While a VAR looks to sell a product, an MSP offers support to its clients. MSPs often aim to nurture a good relationship with their clients and support them with various services to ensure the smooth running of the company’s operations. The MSP model is most often subscription-based, meaning that MSP businesses make their money by charging a recurring fee. This makes for a more predictable revenue stream when compared to the way VARs make their money. Pros and Cons of VARs 🧐 The VAR model comes with both pros and cons, which you should consider when deciding between the two. Pros of VARs 😃 Flexibility: VARs can adapt easily to changes in current market trends, meaning they can supply the products people want and need. Diverse revenue streams: VARs can stock a wide range of third-party products, which means there are lots of different methods of income. Customization: The whole VAR model relies on the fact that the company adds features or services to already existing products. This means that they can create the exact products or services businesses need, no matter whether they’re working with a large enterprise or a small business. Cons of VARs 😬 Competitive market: The VAR market is a highly saturated field, which means that VARs are always facing steep competition from others in the industry. Market dependency: When businesses cut spending during times of economic downturn, most often, it is VARs that suffer. This reduction in demand can lead to a drop in revenue. Margins: Due to the saturation of the market, VARs are under constant pressure to ensure their profit margins remain competitive. This could add pressure to pricing and negotiations with clients. Supplier dependency: VARs are completely dependent on the availability of products from other suppliers, which means that their inventory is subject to outside fluctuations. Pros and Cons of MSPs 🤔 MSPs tend to have more pros than the VAR business model, which we have detailed below. Pros of MSPs 🥳 Recurring revenue stream: One of the major pros of the MSP model is that you have a consistent revenue stream from subscription fees paid to you by your clients 💰. Scalability: The MSP model can grow with their clients, so as the business gets bigger, your services can match their needs. Expertise: MSPs can often be highly specialized in the information technology sector. This could mean specializing in data management or cloud services. Specialization gives you a niche to target and an edge over the competition. Proactive maintenance: The MSP model means you proactively maintain a system for your clients. This can save them time and money, as well as reduce downtime when something goes wrong. Cons of MSPs Intensive customer relationships: Client satisfaction is absolutely crucial to MSPs, so client relationships need to remain strong. Security: Because MSPs are dealing with sensitive client data, their security systems need to be robust. MSPs are often the target of cybercriminals. Client education: Sometimes, MSPs will need to educate their clients on why the services they provide are worthwhile. This might include educating them on the long-term benefits of IT management rather than relying on the break-fix model. Income: VARs Vs. MSPs 💸 If you’re looking to start a VAR or MSP business or transition from one model to the other, you’re likely interested in the kind of money you can be making. VARs and MSPs have different revenue streams, and because of this, they often have different annual incomes. We’ve detailed the differences below. VARs Income VARs make most of their money through third-party product sales. This means that income can fluctuate depending on the kind of profit margin set. For niche products, a higher margin can be added to ensure the VAR makes money from the sale, but with more popular products that competitors may be selling, it’s

The accounting industry, like any other industry in the digital age, needs to keep up with current practices, and one of the easiest ways for you to do this within your accounting practice is to implement new technology. Technology in the accounting world can help decrease human error and improve your services all around. With accounting practice automation software available, tedious jobs can be done by a computer, giving you time for the stuff that really counts. But how do you go about introducing advanced technology to your accounting teams? Below, we’ve offered guidance on how to introduce new tech to your accounting professionals and how to overcome any hurdles you might face. Analyzing the Need for Technology in Your Accounting Practice 🧑‍💻 Source: TrustRadius In the modern accounting profession, technology is an absolute must. No longer do accountants use pen, paper, and an abacus to help you deal with financial records and your accounts receivable; instead, they use technology that automates the processes. But what are the benefits and uses of technology in accounting? Efficiency and time-saving: One of the most obvious benefits of automation in accounting is the way it helps accountants save time. If time-consuming daily tasks are automated, they’ve got more time for other stuff. Accuracy: Humans often make mistakes, and this can cause issues when it comes to your financial information. Fortunately, the use of accounting software can reduce errors and improve overall accuracy in your financial reports. Access to real-time data: Using cloud computing solutions and remotely accessible tech can mean accessing real-time financial statements quickly. This makes informed decision-making easier and allows flexibility and collaboration in your team. Security and compliance: Due to the sensitivity of financial data, it can be difficult to ensure your practice is compliant and secure without the use of advanced tech. Improve client relationships: Using accounting software can also improve communication with clients and even offer value-added services, like personalized reporting. Introducing Technology Into Your Accounting Practice 🧾 Introducing things like artificial intelligence and new software to your team can be difficult. Firstly, because learning how to use it takes time and energy, but also because people may feel the technology is about to take over their jobs! Do your best to reassure them, and then look at the steps we’ve listed below for introducing new tech to your accounting firm. 1. Assess your Current Processes 📈 The first thing you need to do is look at how you’re currently doing things. By doing this, you give yourself the opportunity to see where you’re not working as efficiently as you could be. Look at pain points and areas for improvement in relation to the specific needs of your business and the clients that you serve. Source: TrustRadius When looking at your processes, consider how long things take and where employees may be feeling more stress. Do certain daily tasks take lots of time and appear frustrating for staff? Could you do something about these issues? While not always the main reason for implementing new tech, you might find that new software actually improves workplace culture by reducing employee stress! 2. Choose the Right Technology 💾 There is a ton of accounting software out there. Way more than you will have time to look at, so instead of checking it all out, look at what you actually need. Are you looking to automate invoices and workflows? Do you want to give clients access to their cash flow in real-time? Once you know exactly what you want the tech to do, you can narrow down your search and find products that actually work for you. You might benefit from reading user reviews from other accounting firms or, indeed, asking colleagues in the industry which products they have found most useful and why. 3. Invest in Training and Skill Development 💸 The new technology or software you invest in will likely require training for your team. This might come from the company you purchase the software from, or you might do the training yourself. The key is to ensure that everyone actually understands how to use the software and uses it optimally. You might choose to train only staff who already have skill sets that lend themselves to this kind of technology. But remember to try not to alienate some members of your team who also want to learn. 4. Ensure You’re Meeting Compliance Standards 🤝 A set of accounting rules, regulations, and standards, known as the Generally Accepted Accounting Standards, or GAAP, govern many processes relating to accounting practices in the US, along with other regulations. As a business, you need to be compliant with such standards to ensure you’re working legally. When implementing new technology, it is imperative that you ensure all your processes remain compliant with the new software. You might want to work with your legal department or a solicitor to ensure that all aspects of your new processes meet industry standards and regulations. 5. Gradually Implement the New Tech 🧮 Implementing new technology into your accounting firm will always take time. Firstly, so that your team doesn’t suddenly have to learn lots of new processes and procedures overnight, but also so that clients can get used to the upgrades too. Additionally, introducing new technology tends to be a costly endeavour, with lots of software costing money upfront or in subscription fees. The best way to implement new tech gradually is to pick the software that is going to improve procedures the most. Start with this piece and spread training and skill development out so that your team has time to learn the new processes and get used to the tech. You could lay a road map that is shared with the team and illustrates how and when new features, procedures, and software may be implemented over a period of time. This gives your employees all the information they need and gets them ready for the upgrades. You may also want to illustrate the benefits of

In the dynamic and fast-paced world of accounting and bookkeeping, staying relevant and informed is essential👍. The competitive nature of the job requires a constant effort to refine and improve your skills. Whether you’re a seasoned professional or you’re just starting out and looking to dip your toe into the industry, there’s always something to learn🧠.  The right resources can transform your professional career, aiding your knowledge and expertise in specific areas. In particular, books help us gain new knowledge and enhance our existing knowledge🤩. By reading the right books and applying them, we’re setting ourselves up for success🏆. To help you further succeed in your field, we’ve compiled a list of 10 must-have bookkeeper and accounting books📚. Do you want to sharpen your skills and expand your expertise? Let’s get into it.  Source: Imagine Forest  The Power of Books for Accountants and Bookkeepers In an era in which technology dominates, the power of a helpful book is often overlooked. For accountants and bookkeepers, the written word can help you brush up on your pre-existing knowledge or propel you into a whole new element of the job📈. Before we get into the must-have books, let’s explore how they can benefit your professional journey.  Here are some advantages of reading accounting books: 1. Books Broaden Your Horizons🤔 Books are great for broadening your horizons. From the basics of accounting to niche knowledge, there is something for everyone. Books can provide real-life, in-depth explorations of concepts and explore real-life case studies and scenarios to aid your understanding and skills👌. For students and professionals, books can offer insight and education on basic and specific principles, broadening your horizons. 2. Books Inspire You🤩 Books have the power to inspire and motivate. The accounting and bookkeeping world is driven by determination and professionalism. By reading a book with success stories📖, valuable strategies to overcome challenges and lessons recounted by professionals and experts, you’ll feel inspired as your passion excels.  3. Books Build a Strong Foundation🏗 Books offer the chance for people to revisit the basics and secure a solid foundation of knowledge. You can explore the principles and brush up on your understanding before diving into the more complex of information. From step-by-step guides to the basic outline of knowledge, you can create a concrete understanding🧠.  4. Books Provide Continuous Learning Opportunities💡 The dynamic nature of accounting and bookkeeping requires staying on top of changes or adapting to alterations. Books offer a structured approach to learning new skills that you can put into practice in your role. Information for remaining aware of technological advancements, adapting to new tax regulations and navigating professional expectations can be found in books. This, in hand, will propel you further in your career, securing success and adaptability.  To conclude, the power of books is unmatched📖✨. Whether you’re an accounting student, new to the industry, or want to refine your skills or inspire your mind, books are a great option. By diving into great books that offer useful and professional insight, you can elevate your skills and transform your professional approach. 10 Must-Have Books for Accountants and Bookkeepers📖 As professionals in the world of finance, understanding the importance of remaining aware of industry trends, best practices, and regulations is essential. For accountants and bookkeepers at any level, there is always something new to learn. According to statistics, “60% of small business owners feel they aren’t knowledgeable when it comes to accounting.” That’s where books come in.  Let’s explore some indispensable books that cater to different aspects of the industry👍. Source: Go Remotely   Here are ten must-have books to secure your knowledge and refine your skills: 1. Accounting Made Simple – Mike Piper For any students, new accountants, or seasoned professionals looking to go over the basics, this book is a great option✨. Written by a certified public accountant, this book guides you through the fundamental accounting principles, helping you secure a strong foundation of knowledge🤔. From learning how to prepare financial statements to going over formulas and processes, this book is an excellent introduction to the world of financial accounting💸. 2. Intermediate Accounting – Donald Kieso, Jerry Weygandt, and Terry Warfield For people who already have a basic understanding of the principles of accounting and bookkeeping, this book is the next step up. Offering essential tools and key principles, this is an excellent book if you’re studying for your CPA exam or you want to dive deeper into understanding accounting in more detail🧠. The book offers insight into critical examples, access to problems, and advice on how to overcome them.  3. The Little Book That Still Beats the Market – Joel Greenblatt While this book is still simple and perfect for understanding accounting basics, it helps you progress to more advanced topics🤗. The author actually wrote the book for children to understand, demonstrating its emphasis on easy-to-follow principles and processes. It goes through how to invest in your business, helping you understand the process of developing a long-term strategy for your business and financial success. Source: Inc. 4. The Advantage: Why Organizational Health Trumps Everything Else in Business – Patrick Lencioni) For big and small business owners, organizational health is crucial👌. This book will explain why workplace culture matters and the ways it can transform a company. The author uses his experience to express how workplace politics are more important than innovation, strategies, and intelligence. Whether it offers advice for your firm or your client, understanding the principles of organizational health will elevate your success🏅.  5. The Undoing Project – Michael Lewis Accounting and bookkeeping are all about working with numbers🔢. The advantage is that they remain the same, and no feelings are required. This book follows the research of two psychologists who coined the term “behavioral economics”, which refers to looking at facts and figures over our intuitive responses. This book helps you dive into the world of figures, facts, and data, teaching you how to remove your feelings from your decisions🙇‍♂️.  6. Thinking, Fast and Slow – Daniel

Bookkeeping is crucial to businesses of all sizes as it plays a key role in their operations📚. If you’re embarking on a journey to refine your bookkeeping practices, there are some simple steps you can take. Whether you’re a small business owner or an experienced entrepreneur, there are always ways to improve your bookkeeping abilities🧠.  In this blog, we’ll uncover the secret to success by exploring nine simple ways to elevate your bookkeeping practices 📖. From leveraging technology to enhancing your organization skills, there’s plenty you can do to improve your business and get ahead. Are you ready to learn more🤔? Let’s get into it. What Do Bookkeepers Do? In the intricate world of business finances, bookkeeping plays a vital role in keeping everything in order💸. Effective bookkeeping practices also help to maintain financial health with elite accuracy. We all know how important finances are to a business, and bookkeeping is there to streamline all transactions and processes.  Here are some reasons why effective bookkeeping is essential: Source: FitSmallBusiness Record Financial Transactions🤑 Bookkeeping can help a business by recording every transaction that occurs with excellent accuracy. A bookkeeper records day-to-day transactions, such as purchases, receipts, sales, and expenses. By keeping track of the in-goings and out-goings of a business, it provides a clear record of its financial history.  Categorization and Clarification📊 Within a business, different finances fall under various categories, and bookkeeping can help ensure that the financial data is organized accurately. By categorizing the finances of a company, you can ensure it’s easily accessible when necessary.  Bank Reconciliation💰 Bank reconciliation is the process of ensuring all transactions are accounted for by comparing bank statements to company records. Effective bookkeeping will help to identify any errors or areas that require alterations and put them right, ensuring the statements match up.  Source: Conciliac Ensure Compliance👮‍♂️ Bookkeeping helps to ensure a company is compliant with the law by providing complete transparency with financial information. This allows a company to avoid the risk of any legal issues using their attention to detail and accuracy skills.  Financial Reporting✍️ Bookkeeping helps to generate financial reports for businesses, helping a company keep track of its financial performance. With this insight, changes can be made due to informed decision-making. With balance sheets, cash flow statements, and income statements, you can see how well your business is doing.  Overall, bookkeeping works to maintain financial order within an organization. With key knowledge and skills, proper bookkeeping can enhance the financial health of a business and by improving your bookkeeping practice, your business will get ahead🤩.  Source: Accounting Today 9 Ways to Improve Your Bookkeeping Practice📖 Taking steps to improve your practice could be what sets you ahead in the field of finances and bookkeeping. The following steps will help you streamline your process, remain as organized as possible, and lay excellent foundations for financial management.  Here are nine ways to enhance your bookkeeping practice: 1. Keep on Top of Your Organization📄 Being organized is a simple but effective way to improve your bookkeeping practice. By maintaining an organized and streamlined filing system, it’ll be easier to stay on top of everything👍. Take the time to create a filing system, both physically and digitally, in order for you to get easy access to any documents that you need. A chart of accountants can help with this organization, too, as this document can keep track of all the financial transactions a company experiences within a period📑.  Utilizing cloud storage solutions to keep all data centralized will also help collaboration within a business. By doing this and ensuring your files are in check, you’ll streamline the day-to-day operations and create a solid foundation of accurate and organized record-keeping.  2. Regularly Reconcile Accounts✍️ Regular reconciliation is an essential part of effective bookkeeping as it means you’ll stay on top of your reports. Once a month, take some time to reconcile your accounts, ensuring the bank and credit card statements align with your accounting records. If you notice any issues, this will provide you with the chance to make adjustments. Plus, it’s an excellent opportunity to get an accurate insight into your financial health🤒.  Source: Conciliac 3. Utilise Bookkeeping or Accounting Software🖥 Make the most of any bookkeeping or accounting software out there and use its features to your advantage. We all know how helpful time and attendance software and others alike can be, so why not try an accounting one?  These software exist for a reason and are extremely useful for keeping all your files in one place where you can easily access them👨‍💻. Explore the different options and choose the one that aligns with your business’s scale.  This is great for streamlining processes, as you can automate any repetitive tasks, like data entry, and save valuable time for other commitments.  Source: Wolters Kluwer  4. Train Your Team🤝 Take the time to enlighten your bookkeeping team, as they’re the backbone of the efficient processes. Host regular training sessions for your team to develop their skills and cover the best practices and any regulations they should be aware of🤔. Offer the opportunity for questions and answers and encourage continuous learning.  Foster a thriving culture of attention to detail and enlighten them on the importance of their role. This will give them a sense of belonging, increasing their motivation and productivity as a result.  5. Backup Financial Data💰 Safeguard your financial statements and data and make sure they are backed up at all times. Rely on a digital backup system for the best results. To ensure the backup system is consistently working to the best of its ability, take time to regularly inspect it and test data restoration procedures to check its effectiveness⭐️.  Data backup is a non-negotiable element of bookkeeping, and peace of mind is always a bonus. By doing this and checking its efficiency, you can remain prepared for any unexpected circumstances.  6. Separate Personal and Business Accounts🧍‍💼 An important rule to follow for effective bookkeeping is to keep your personal and