What happens when there is a backlog in Bookkeeping and what causes backlogs?
Bookkeeping, as even a hardcore Accountant will admit, is not a pleasant task.
It requires persistence and also patience.
Often what happens to the Businessperson is that having applied his energy to developing and managing the business, he does not have the inclination to do the Bookkeeping. The job is postponed and after it becomes a daunting task, the business owner decides to get expert help. This is not peculiar to small business –backlog happens in Medium and large companies also due to various reasons.
The only way to clear the backlog is assign a separate team to handle the same. The regular Bookkeeper will require all his time and attention for day-to-day work. And so if he attempts to clear the backlog, it keeps growing.
Accounting in a remote mode is one sure fire way of clearing the backlog. The accounting software like QuickBooks is zipped and sent to the service provider along with the scanned copies of the documents to be used for updating the QB.
However it is advisable to keep the entire folder on FTP location, for sharing