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The Evolution of Accounting Technology
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In accounting, faster software is performing more complex functions at a quicker rate. Interconnected technology is making accounting more efficient and easier. Organising financial information, analysing data and monitoring economic activity is simpler than ever before.
What is happening in accounting?
Advanced cloud-based systems for accounting technology are enabling all accounting businesses to fully utilise the internet. While some businesses think of the internet as simply a place to host a website or run social media accounts, the cloud represents a momentous change in technology that is sweeping the corporate world.
Today's accounting firms are able to use cloud-based systems to streamline their workload. All you need to do is log on, no matter where you are, or what time of day it is, to access your data and complete the tasks you need to do. It can improve your accounting business's efficiency because you can analyse data in real-time. Everyone in your company can access the most up-to-date data.
It makes it much easier to use electronic documents from the web and you have unlimited storage space. This means no matter how large your accounting files become, and how every many you have, as your business grows, you'll never run out of space.
The cloud also enables you to synchronise files across multiple platforms. Safe and secure, all files are backed up automatically on the cloud. Keeping accounting records in digital format, on one efficient system, means you can retrieve and manage files more easily.
You can also smoothly distribute accounting information among different branches within your company. Using simple cloud-based systems enables you to keep a handle on data retrieval, security and backup too.
Is new accounting technology a positive change?
From an accountant's point of view, this is a positive change, as cloud accounting can make your business more efficient and cost-effective. It can increase your revenue, because it reduces significantly the time spent carrying out services such as bookkeeping, tax preparation and accounts.
It is also a positive development for a client hiring an accountant, as the underlying data can be handled in a timelier fashion. With traditional accounting, it could be time-consuming and sometimes a hassle for clients to send data to their accountant. Now, with cloud accounting software being connected to financial tools and bank feeds, all the data can be synced at least once a day.
As bookkeeping and accounting apps become more sophisticated, carrying out tasks can happen faster and more efficiently, with technology taking over a lot of the repetitive tasks that can be time-consuming.
Are any accountants using old methods?
Do all accountants need to move with the trends, or should they also use the old methods? The jury is still out on this question.
Most accountants seem to believe the cloud accounting is the future. However, there is no definitive "best practice" guide for moving a business and its clients to the cloud. It isn't easy to go from being a traditional accountant to becoming a firm that uses the cloud
It's true that a business can be more efficient by taking advantage of the latest technology, but the migration process will be different for each company. For example, if you're using Dropbox or ShareFile, or if you use online office software, such as Microsoft Office 365 and Google Apps, your processes will be different.
What does the future hold for accounting technology?
Just as we've become increasingly dependent on mobile devices in our personal life, there are also advantages for small business too, including accountancy firms.
There are a few mobile apps dedicated to accounting, enabling several tasks to be carried out on a mobile device - such as creating and sending invoices, capturing receipts, creating expenses claims, or getting signatures. All of this can be accomplished with just a few swipes across the screen.
Your data will be backed up, so if an issue arises that needs a quick answer, you can access your files and data, even if you're on the road.
You will receive a host of added benefits by signing up to DL Accounts, including a subscription to Xero and Dext. In the event of your computer being lost, broken, or stolen, you won't lose all of your work, as your account is backed up and protected in the cloud every three seconds.
In addition, Xero’s online storage means you can log in using any device with an internet connection and you're ready to go.