Every modern-day activity we can imagine directly or indirectly relies on technology. From the internet to electric gadgets with autopilot mode, humans have taken advantage of tech in every possible way. Like every other industry, the business world is no different. Entrepreneurs have integrated high-tech tools into their routine operations. From customer relationships to inventory management – the entire business industry is on the path to automation.
However, some operations, such as accounting and finance, are still outdated. Most companies have bookkeepers to record data entries and accountants for financial reporting. They fail to realize that technology provides equally intuitive solutions for professional accountants. Advanced accounting software has made it possible to record and collect information from various sources automatically. Hence, it automates all the repetitive tasks.
These innovations allow accountants to focus on more meaningful tasks, such as facilitating investment decisions and monitoring performance. In addition, it can help business owners to improve accuracy and make more apt financial decisions.
The Role of Technology Solutions for Professional Accountants
- The emergence of Digital Accounting Services
In 2022, accounting is no longer a conventional desk job solely dependent on manual bookkeeping. Modern-day accountants can utilize their skills and talent to offer their services across the globe – all thanks to technology. Many accounting firms have already started offering digital accounting services. Here, businesses can book online consultations and take advice from their company.
Besides advice, people can also acquire accountants’ services online. Let’s say a company wants to purchase an asset on a lease, but they aren’t sure whether you recognize the asset through IAS-17 or IFRS-15. As a professional accountant, you can efficiently offer lease accounting solution and help them prepare financial reports.
Depending on the lease type – finance or operating, you can make the correct treatment in financial statements. Since accountants work on open-ended software, the client can monitor every adjustment, improving transparency. Further, you can also offer bookkeeping, financial controlling, and data management services through digital accounting.
- Automated Data Entry
Previously, accountants had to do everything by hand. Half of the bookkeepers used to track invoices, and the rest kept records of all receipts. Besides being time-consuming, it led to omissions and errors in the final reporting. Fortunately, accounting software has automated these data entry-related tasks. You can integrate the software with invoicing, payment, payroll services, and your business bank account. It will allow the software to fetch all accounting records automatically.
In addition, it will also keep updating itself as new transactions happen because the software has access to real-time information. Some entrepreneurs might find all this technical, but it can eliminate the need for manual entry. Alongside improving accuracy, it will save the accountants’ time which they can use for other tasks. Perhaps, they can spend more time analyzing financial data and identifying underlying patterns.
- Smart Data Storage Solutions
Have you heard of cloud technology? Lately, cloud technology has made waves in the business world. It allows employees to store data remotely and access it anywhere at any time. Therefore, they don’t have to be in the office or doing paperwork to complete regular tasks. Luckily, accountants can take advantage of cloud computing too. They can store all financial data on cloud services and access information at their fingertips.
Further, cloud storage can make it easier to find data. For instance, you can search in the folder if you need financial reports for 2002. It will automatically find the file that matches the keyword. Above all, cloud technology is secure, improving your financial data security. Business owners can even integrate a pin-code or password to restrict unauthorized access.
- Efficient Client Transactions
Today, the standard accountant-client interaction can be highly time-consuming. Both parties have to make time to meet and discuss the billing and payment terms. Likewise, clients must be present at the office to review documents and paperwork. It might look like a conventional practice but not an effective one.
As new tech has emerged in the accounting industry, it has significantly improved client transactions and interactions. The high-tech tools and software allow accountants and clients to access real-time data remotely. Hence, they can edit, view, and comment on the documents. Afterward, they can have discussions to adjust the term and conditions. These digital consultations ensure clients and accountants are on the same page. In addition, it streamlines the billing and payment process since clients have already analyzed data remotely.
- Blockchain Technology
Another tech innovation taking the accounting and finance industry by storm is blockchain. It is a computer-oriented recording system that leverages cryptocurrency within a peer-to-peer network. Even though blockchain has become famous due to crypto, the technology has progressed immensely. It can allow accountants to maintain a record of transactions in a highly secure network of blocks. Thus, one could say blockchain is a new accounting ledger.
The ledger allows accountants to create smart contacts and record transactions. It will allow accountants to transfer payments directly to the user, eliminating the need for a financial intermediary. Perhaps, you can add your vendors or suppliers to the contact chain and improve the payment process flow. Further, the blockchain network offers a user-to-user platform, meaning you can save on bank charges and conversion fees.
- Elimination of Bureaucracy
Fraudulent activities and bureaucracy have always been the two utmost concerns of every accountant. Incorrect entries by bookkeepers lead to an understatement of profits and cash outflows. Surprisingly, technology has put a stop to all these activities. The intuitive software solutions provide direct channels through which information gets traced. In addition, your business bank account is connected to the software, eliminating the risk of inaccurate records.
The software will record the exact amount deducted from your account. Thus, no omission or transmission errors in the financial reports. Besides saving time, it eliminates the layers of bureaucracy. After all, an accountant handles all money-related matters end-to-end, removing the need for special approval for different projects.
Experts believe accounting to be a quantitative version of economic phenomena but a complex one. However, if your business is lagging in the accounting department, update yourself with the latest trends in the accounting industry. Indeed, technology can help accountants in providing solutions for professional practices.