Tuesday, 30 July 2019

Impact of Technology on The Accounting Industry

Accounting is one of the most important activities of a company. The financial position of a company and various significant information about it is provided to the management by accountants. Matters regarding profit and loss, transaction statements, loans and investments are handled through accounting. Accounting indeed has a crucial role to play for the smooth working of a company. A systematic set of records is maintained by accounting. It also helps to determine the current position of the company. Last but not least, accounting also helps to report important financial matters and prepare an accurate budget for the company.

Impact of Technology on The Accounting Industry

Realizing the importance of accounting, it is also clear what significant roles accountants play in the working of a company. The most common form of maintaining records of financial activities is an excel sheet. However, as days have progressed, technological advancement has taken over all the important activities of a company. The field of accounting has seen some serious improvement because of the significant development of technology. Not only accounting, but it can handle different business operations efficiently in an error-free manner. With the help of modern software solutions, complex accounting activities can be performed quite easily now. The work has become much easier and efficient with the help of interconnected technological facilities.

With technological solutions, one can perform any complex accounting activity such as gathering financial information, preparing profit and loss statement, keeping a record of transactions, analyzing the important data, sending automated invoices and maintaining a track of the other economic activities.

Here are some of the ways by which technology has impacted the accounting industry:

• Error-free solutions

With the help of specialized accounting software solutions, the margin of error (manual error) has significantly gone down. More proficient technology and tools have been introduced to reduce human labour and make the work easier. The accuracy level has gone up as a result of this. Nowadays, reputed companies have specialized software solutions that can allow easy data entry and processing so that the accurate report is formulated in a short span of time. With accuracy, the efficiency of the accounting industry has also increased because of technological advancements. Companies having these technological aids would not have to incur a loss or penalty because of inaccurate or error financial reports.

• Cloud computing software

Cloud computing system is the latest technological feature which has impacted the accounting industry in a huge way. One can have access to all the financial records at any point with the help of this. In fact, every business organization has been enjoying the benefits of cloud technology at present. It is helpful to streamline all of your information. This has also increased productivity because more than one person can work on the same file at the same time with the help of this. They are stored securely in a comprehensive manner for providing easy access to authorized users. One can say that it is a “digital book-keeping” technique. There is also an option for data recovery and backup in case of any other issues. Cloud is an efficient way of storing information because of its security and convenience. One does not need to worry about breach or loss of any information.

• Importance of IT skills in accounting

For a professional accountant, possessing a certain skill set is really important. While one of them is to handle the numbers efficiently, the other is to have enough knowledge of the IT programs. Accounting and IT go hand in hand for a better outcome and a more developed solution. It has been able to develop computerized systems to track all the important financial activities and maintain a steady record of it. The financial information can be prepared thoroughly and automatically sent to the administration and management without wasting much time with the help of IT solutions. Information can also be processed easily through modern technological approaches. Having enough knowledge of IT can surely increase productivity. Specialized VAT services, GST calculation, preparing tax files and all similar activities become easier through this.

• Easy operation

It is true that anyone with basic knowledge of accounting can handle the financial matters of a company. Technical help may be a significant improvement on that. Certainly, feeding, processing and computing data can be a tedious as well as a time-consuming task but technological facilities will help to make the process easier. The professional accountant of any company can handle versatile tasks with a few clicks. Over time, there has been a significant development in accounting software and its application in the real world has also become quite simpler. Data analysis and processing can be carried out efficiently. Besides, the accountant can also engage himself/herself in other important works.

• Make way for mobile accounting

With the introduction of mobile accounting services, the industry has improved greatly. Almost any accounting activity such as preparing invoice, computing and processing data, adding receipts, tax calculation and sending financial reports, can be performed through mobile phones these days with the help of several software applications. Big companies utilize customized services for better performance. Everyone has access to mobile phones these days, it is only smart to merge mobile technology with accounting to enhance productivity. A number of applications are circulating in the market which can provide help in accounting services.

Technology has taken over every aspect of our lives, be it personal or professional. The only aim is to lessen the human effort and reduce the time consumed to complete a task. Keeping in mind the importance of accounting functions and how it can affect a company’s performance, technical help is preferred by all. It is safer, more efficient and also helps to increase productivity. Reputed firms providing high-quality accounting services always make sure that the candidates have a basic understanding of the technical field before hiring. The professional accountants can easily engage themselves in various other important activities such as providing genuine assistance in preparing the budget, formulating the financial planning for the company’s future and so on. The accountant industry has seen huge development because of technological advancement over many years. 

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