The rapid advancement of technology has affected all types of industries, and accounting is no exception. Within the last few decades, the accounting industry has experienced several disruptions, and they do not seem to be ending soon.
To keep up with the market, companies need to re-examine their accounting processes and look for ways to bolster their system. In this manner, businesses can adapt to changes, expand operations, and stand out among competitors.
Indeed, the benefits of an efficient accounting system cannot be ignored. For a better understanding of how the accounting industry is changing, here are some of the trends you need to know.
Automation of Accounting Processes
Technology has advanced to a point where several processes in accounting can be automated. Take data entry, for example. With barcode technology, you can easily list down the price of an item and find out its corresponding information.
Automation has streamlined the repetitive aspects of accounting like bookkeeping and recording while increasing data accuracy and consistency. This feature is particularly helpful for dealing with the surge of information that companies gather and process every day.
Focus on Data Analysis
One of the biggest trends in modern accounting is the shift from bookkeeping and recording to data analysis. With several tasks automated and more analytic tools available, accountants can focus on analyzing financial data and gathering more insight into a business’s finances. Consequently, they can offer advice to company management or their clients when it comes to decision making. In this manner, you can manage financial risks and make the most efficient use of company resources.
Exploring Cloud Accounting
In layman’s terms, cloud accounting is similar to traditional accounting, but most processes are done online. In this mode, accountants and other relevant personnel perform tasks on an online platform hosted by a software provider. Data is stored in a third-party server located off-site.
As several businesses can attest to, cloud accounting offers several benefits and opens up numerous opportunities, including:
Additionally, you can sync the cloud accounting system with the company’s bank accounts, existing programs, and other tools, allowing you to have a bird’s eye view of the business’s financial status in one platform.
Through the internet, remote accounting is made possible. Accountants, company management, stakeholders, and other personnel can now conduct meetings and accomplish accounting tasks online. The work-from-home setup was already becoming more common even before the COVID-19 pandemic. The lockdown and pandemic restraints simply sped up the transition process.
Companies also realize then that they can form virtual teams and even outsource accounting operations entirely. By leaving accounting to the pros, businesses can focus on their profit-making sectors, such as marketing and customer relations.
Nowadays, mobile phones function almost like an extension of a person’s body. Here, individuals make payments, connect with others, and search for information, among other things. Hence, it is not surprising that more accountants may turn to their phones for completing accounting processes, like tracking financial data and managing accounts.
When it comes to working remotely, it becomes more apparent that apps which support accounting systems are no longer negligible. Solutions providers have begun developing apps for their accounting software to provide a seamless remote workspace for accountants to use on their mobile devices.
Similar to how the average consumer likes personalized items, more and more companies are looking into customized software suites as well. After all, each company has demands and tools it uses to accomplish daily tasks and reach business milestones. Fortunately, many software options allow you to pick features and even customize programs that address not only present needs, but future ones as well.
To accomplish that, solution providers must guide their clients on identifying pain points, business demands, and possible accounting solutions. Only then can the transition period from traditional accounting methods to bolstered accounting systems be implemented effectively.
ANSI is one of the most prominent system solutions providers in the Philippines. With decades-long experience in the field, we have helped several businesses—both locally and internationally—transform their traditional accounting programs into high-functioning systems. For more info, contact us and let us help you make the most of the accounting possibilities available with today’s technology.