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How is KPMG Spark Different From Other Online Accounting Solutions?

KPMG Spark isn’t a software solution, it’s a software-enabled service—also known as managed accounting—which is vastly different from accounting software.

Most entrepreneurs start their businesses to pursue their passions, but then quickly find themselves mired in the day-to-day reality of managing cash flow and trying to keep their finances in order.

So, it’s only natural that when they start looking for a solution to their bookkeeping challenges, they are quickly overwhelmed by the array of options available. Many business owners ask us how these other options compare to KPMG Spark. This article will help you understand the answer to that question.

For many entrepreneurs, a typical online accounting software provides the basic features and bells and whistles that business owners think they need to manage their bookkeeping. But at the end of the day, those platforms are just software—and you or someone you pay still must do your books.

This is what makes KPMG Spark different. It isn’t a software solution; it’s a software-enabled service—or, as we like to say, managed accounting. While that may sound like semantics, these two options are completely different.

Here are three key differences between KPMG Spark and other typical online accounting software:

1. You get a real bookkeeper—not just software

With most online accounting platforms, the business owner, or someone they hire, must do most of the work entering transactions and reconciling accounts. That person not only has to understand how the software works—and navigate its sometimes complex user interface—but he or she also must know enough about accounting to use it correctly.

With KPMG Spark, business owners don’t have to worry about figuring out all the complexities of using the software because every customer has a KPMG Spark bookkeeper who sets up the initial accounts and oversees all transactions. The KPMG Spark platform uses intelligent automation to categorize transactions, and the bookkeeper then verifies them—to help increase accuracy and sort out any missing information.

Moreover, if a transaction gets logged on the platform that doesn’t fit standard operating procedures, it gets flagged and the bookkeeper can contact the client for more information. For example, if the purpose of a $500 ATM cash withdrawal is unclear, the bookkeeper can message the client to inquire—and the client can simply respond or even send back a picture of the receipt.

Likewise, if a business owner or another authorized user has a question or wants clarification about something shown in their financials on the KPMG Spark platform, they can simply click on a line item and leave a comment, question, or request—and their KPMG Spark bookkeeper is immediately notified.

2. Your financial data is real-time

Typical online accounting software generally requires you to set up all the business accounts yourself and understand basic accounting methods and principles to ensure that all the transactions are going into the right accounts.

This means that you (or whoever you designate to oversee your bookkeeping) will have to regularly log in and enter all your financial transactions manually. Of course, most offerings out there today let you sync your bank accounts and credit cards with your accounting software. Some programs may even suggest how to categorize those transactions, but ultimately you still go into the program and ensure those transactions are entered correctly. You also need to reconcile bank and credit card accounts against statements at least monthly.

With KPMG Spark, as soon as a transaction hits your bank account or credit card, our intelligent automation technology automatically pulls it directly into your statement and posts it immediately to the designated account. Your bookkeeper then reviews every transaction to help categorize them correctly. That gives you 24/7 access to real-time information. This immediacy is critical in today’s fast-moving market because if you’re trying to make decisions based on yesterday’s information, you’re putting yourself at a disadvantage.

With typical online accounting software, the information is only as current as when you last classified and reconciled the transactions—and that lag time in data means you won’t always have the most up-to-date information on which to make important business decisions.

3. KPMG Spark grows with you.

As a business owner, it’s critical to think about the future. Real-time bookkeeping lays the foundation for future growth by helping you get immediate answers to questions such as:

  • Where are the opportunities to improve cash flow?
  • What are your future tax liabilities based on current operations?
  • What does next month’s cash flow look like?
  • When will you be able to afford new staff?

Moreover, you don’t want to have to switch accounting solutions because you outgrew your previous one.

KPMG Spark was designed from the ground up as an all-in-one solution. And with the backing of KPMG LLP, KPMG Spark serve companies at all stages. Whether you are looking to grow your business steadily or going for an IPO, we have the services and team to help you get there—and that’s not something a software program can provide.

KPMG Spark can help relieve your company of bookkeeping and allow you to focus on other important activities—all while taking advantage of real-time financial data. Schedule a consult to learn more and find out if KPMG Spark is the right fit for your company’s needs.

The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG LLP.

This blog article is not intended to address or provide advice concerning the specific circumstances of any particular individual or entity and does not constitute an endorsement of any entity or its products or services.

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

The following information is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

Any trademarks or service marks named in this content are the property of their respective owner(s).

KPMG SparkJuly 19, 2022Posted In: Business Tips

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