As we get further into this technological age, more and more areas in everyday life are becoming touched by technology. This is true for the accounting and bookkeeping industry as well. Technology has stepped in and transformed some of the repetitive, time-consuming, and complicated processes of traditional accounting into simple automated tasks.
The most obvious impact of technology in accounting and bookkeeping is the reduction of errors. It is now easier than ever for bookkeepers and accountants to rectify mistakes and provide businesses with more useful financial information. Automation of the recording processes is saving businesses time and reducing human errors in a huge way.
Here are some of the ways technology can make for smoother bookkeeping in your business.
Saving Time with Automated Activities
With today’s software and the ability for it to integrate with other programs and apps, you are now able to automate the tracking of
- bank accounts,
- credit cards, and
- other e-payment accounts.
There is no longer the need for repeated manual actions unlike the older traditional methods of maintaining countless receipts for the entire year. Such applications save a huge amount of time for whoever is doing the books and help to eliminate human errors.
You can connect your bank to software and have transactions flow in each business day so there is no need to manually input these transactions. This allows you to easily reconcile data with bank feeds.
Hardware issues and software crashes are just some of the things that can wreak havoc on
accounting and bookkeeping information. Losing this data can be disastrous for both businesses and bookkeepers.
To avoid such issues, it is important that regular backups are done. There are various methods of backing up data online. The preferred method for bookkeepers and accountants is an online cloud accounting system such as Xero.
Using a cloud accounting system enables anytime, anywhere access and automates the data backup, minimising the risk of losing important financial data.
Better Collaboration and Integration
These days most bookkeepers and accountants work with multiple clients to deliver their services. This level of collaboration and integration between both parties requires constant communication, which is a time-consuming necessity of accounting and bookkeeping.
Accounting software like Xero can integrate seamlessly with the cloud infrastructure and has great collaboration opportunities. It updates each data file in real-time and also keeps track of each and every edit made.
The cloud also helps accounting software to monitor and manage access to accounting and bookkeeping data, as multiple users can access and edit the data at the same time while the master copy saves all the previous data safely and securely.
There is also the ability to lock files to ensure data is not changed accidentally or unnecessarily once it is complete.
Custom Reports & Dashboards
New accounting technology has also made for better financial reporting, there are now more relevant and customised reports available through your software. These can provide important financial information for business decision-making.
If you don’t feel like you are making the most of the reporting function in your accounting software, you may be able to dig a little deeper to see if there is information that you can report and analyse to help you with your business. If you are working with a bookkeeper, they may be able to assist you with this.
Mobile Accounting Software
In this day and age, no longer do you have to be chained to your desk to get the books up to date. Thanks to mobile devices, there’s a variety of accounting tasks that you can handle on the go such as
- reconciling your books,
- processing expense reports, and more.
It’s as easy as searching the app store, most cloud accounting programs will have an app for your mobile device.
Worried about losing the Human Touch?
Regardless of how automated systems become, it always requires a person with the knowledge and experience to operate them successfully. A skilled bookkeeper who is up to date with the technology and legislation will be able to use the technology to its full potential and provide the best services.
Conversations are still important, automated programs can only provide preprogrammed explanations to any queries; people often want to talk to someone trained in the area especially if they have questions.
Technology has come ahead in leaps and bounds in the last few decades and accounting and bookkeeping is a field where modern technology has helped make great changes and smoother processes. Technologies are constantly evolving, and bookkeepers need to stay on top of those changes to provide the best service to their clients.