The drive to full digital transformation has businesses looking for ways to digitize their accounting processes. In fact, 70% of business leaders believe that the industry is rapidly changing thanks to the various technological advances available. By refusing to get on with the times, you might end up getting left behind by your competitors.
Both customers and employees nowadays are more tech-savvy than before. This is the generation who has embraced the benefits of digital technology in their everyday lives. As a result, their demands have also changed over time. They are more accustomed to convenient, accessible, and real-time services. Hence, now is the perfect time to explore the usefulness of digitalization in accounting.
With that, here are some of the impacts of digital transformation in accounting.
1. Save up on time and cost
Crunching down on the numbers can be time consuming. Without the right tools, it can also be error prone. The more time you spend to accomplish tasks, the more it can cost you in the end. Hence, one of the biggest advantages of digitizing accounting operations is its cost-effectiveness.
Using software enables you to save more by minimizing the cost of services. Compared to humans, machines can work faster, tire slower, and avoid common manual mistakes such as typos, miscalculations, and duplications. Moreover, it can automate certain tasks such as processing tax correspondence, monitoring cash flows, and even updating ledgers. The prices for digital accounting services may vary depending on what tools and functions they offer. You can check them out by selecting and comparing accounting software examples.
2. Boost flexibility and accessibility
The advent of the COVID-19 pandemic proves that businesses should start prioritizing flexibility in their accounting processes. The growing demand for remote work means you must make sure that essential data and tools remain accessible to your accountants no matter where they are. Fortunately, an impact of digitalization on accounting is the boost in flexibility and accessibility.
The rise of cloud computing software provides your accountants a centralized platform where they can download and upload critical documents for accounting. This includes receipts, balance sheets, invoices, and bookkeeping ledgers. Likewise, it gives them access to the tools and functions they need to continue their work at home. Through it, they can start processing invoices, filing taxes, and generating financial statements using their personal devices.
3. Promote collaboration
Another benefit to cloud computing software is the increase in collaborative works. Having a centralized platform for all your accounting processes means anyone within your team can have access to the necessary data and files for work. They can easily share documents such as invoices, balance sheets, and forms. It can even allow real-time collaboration in the form of simultaneous access and editing.
This collaboration does not only reside within your teams. The digitalization of the accounting process means you can also streamline transactions with your clients more seamlessly and conveniently. Instead of needing to print receipts, invoices, or forms, you can simply upload or send it to them digitally. This way, you can also avoid having to physically meet up to accomplish certain transactions.
4. Allow scalability
As your business grows, you might find your accounting process struggling to keep up with the added workload. Your accountants and administration team may get weighed down by the workload, resulting in more errors and delays in your operations. This can prevent you from scaling your business effectively and efficiently.
Accounting software like I&A Admin Assist offers automation tools to help reduce workload on your team’s shoulders. Moreover, it can prevent manual errors such as duplications, miscalculations, and typos. This makes it easier to scale up your processes without worrying about the added strain on the team’s health and performance. Using software can streamline your process as it grows.
5. Enhance analytics, reporting, budgeting, and forecasting
Accounting often deals with data and reporting. This allows businesses to make informed decisions and smarter strategies in terms of resource management and financial growth. Thanks to the various digital technologies available, gathering and analysing large amounts of data have become easier and more optimized.
Access to vast quantities of historical data has led to a requirement for greater granularity in budgets and reforecasts for performance monitoring typically not possible in spreadsheets.
Using software allows you to mine and analyse more data from your accounting processes. It can even identify trends, patterns, and discrepancies in the figures for you. But more than that, it can translate raw data and turn them into automated drillable digestible management reports in significantly reduced timeframes. This way, you can gain deeper insights on your finances in just a short glance. I&A’s Essatto for Accountant’s platform enables Accountants to digitally transform these traditional accounting functions.
Embracing the future of accounting
Digital transformation is slowly overtaking the accounting industry. Businesses are looking for ways to adopt the various technologies available within their operations. If you want to remain relevant and competitive in the market, it is high time you embrace the future of accounting.
With various technologies available, you might find yourself overwhelmed. Hence, you should take your time in familiarizing yourself with tools and services you might need for your operations. You can check out I&A to find out more about how digital transformation can impact your accounting process.