4 Ways Digital Technology Has Changed Accountancy

The advent of digital technology brought about massive changes in the field of accounting, essentially increasing the efficiency of various related processes.

From cloud-based applications and automated software to SaaS solutions and virtual outsourced bookkeeping services, there are various products that have made accounting much easier. With changes taking place nearly every day in the accounting field, however, it can be quite hard to pinpoint exactly where the industry is headed.

To better understand how digital technology has revolutionized the way accounting firms operate, let’s go over a few significant changes that have taken place in recent years:

No paper, no problem

Long gone are the tireless days and nights of meticulously jotting down hundreds to thousands of entries a day on a paper ledger and balance sheets in order to comply with accounting standards. In only a few short years, all types of businesses—from worldwide corporations to local supermarkets—have adopted and embraced paperless cloud services and cloud-based apps.

Each accounting task, from purchase order processing to accounts payable and receivable management, has experienced sustainable boosts in efficiency and overall accuracy. By taking on a paperless way of handling each and every accounting process, businesses have cut out the pitfalls of traditional, paper-based accounting that previously cost them.

Lower tax filing error rates

One of the challenges of accounting is the need to have an accurate financial record for tax filing purposes. A simplified and effective IT infrastructure has enabled accounting professionals to do their practices effectively to avoid overlooking taxable values. By having such a system that does most of the heavy lifting, it can be a whole lot easier to compile accurate reports while increasing any chances of scoring tax deductions in the process.

 Accounting services can now be offered from anywhere in the world

In the old days, businesses relied on an in-house accountant who would have to come during the office hours to whip their finances in shape. Nowadays, however, businesses can outsource the services of skilled accountants from any part of the world because of the innovative remote working structure that has taken the industry by storm.

You only need to set up a communication system and provide access to your company’s automated accounting system. Then, a skilled accountant can get to work on your finances without having to be physically present in your office.

A shift in the modern accountant’s role in your business

The accounting profession used to be considered as a paperwork-heavy practice because of the sheer amount of computation that comes with the task. Today, cloud services, automated accounting systems, and efficient IT structures have taken a lot of the tedious paperwork out of the process and essentially revised the modern accountant’s role. Instead of solely being someone that writes numbers down, files taxes, and reconciles statements, a modern accountant is now equipped to function as a financial advisor.

Digital technology has changed the accounting industry in more ways than one, bringing about an undeniable level of rapid growth and innovation in the process.

If you’ve been looking to improve your accounting firm’s work systems with a technological push, get up to speed with updates in the accounting industry by subscribing to Accountancy Today!