How Accounting Technology Improves Your Firm's Efficiency
For many accountants, the "pursuit of efficiency" may be a lifelong endeavor.
Because compliance work takes up a lot of time and prevents most accountants from spending more time with clients, it can be difficult.
But these inefficiencies can be fixed with the use of technology. Less manual labor and data crunching for accountants means more time for high-level analysis and decision-making, thanks to new and developing accounting technologies.
In recent years, accounting technology has advanced to the point that businesses of all sizes need it.
Whether it’s in terms of increased security, streamlined workflow, get access to global talents, or attain higher efficiency, accounting technology is here to make your job easier, so accountants can concentrate on more important tasks like data analysis and decision-making.
It also makes it possible for accounting businesses to increase productivity and profitability in ways that were not possible before.
Automation, artificial intelligence (AI), and cloud computing are just some of the ways technology impacts the accounting field.?
Most of the efficiency gains from using accounting technology come from its ability to automate routine tasks and make it easy to communicate with your global team.
6 Ways How Accounting Technology Improves Your Firm’s Efficiency
Any accounting firm's competitiveness is determined by how effective its workforce is, not by how big it is or how well it is hired.
Each and every company can boost employee productivity and improve its efficiency with the accounting technology available in the market.
1. Access to data anytime, anywhere?
Think about what would happen if an accounting firm’s systems were connected and accountants could work from anywhere with no time-consuming backups.?
Here is how cloud accounting helps improve your accounting firm's efficiency:?
Cloud accounting allows businesses to access their financial data anytime and anywhere without getting lost in a pile of papers. They can even see their client’s financial data as it happens, rather than having to wait until the end of the month or quarter, and come up with better decisions for their finances. ?
Accounting software hosted in the cloud also allows for simultaneous access by multiple users, leading to improved teamwork and quicker decision-making.?
A report by the American Institute of CPAs found that the cloud is being used by over 84% of accounting firms.
Cloud accounting also helps you attain efficiency by streamlining data so you can make better use of financial information and gain a better understanding of your business's performance. It can be achieved through the use of data management and analytics tools.
2. Automation for work
According to a report by PwC, AI can be used to automate the detection of fraud and errors in financial statements, improving the accuracy of financial reporting and reducing the risk of fraud.
Modern accounting automation often fully eliminates the manual components of an accountant's work.
This means no more:
Artificial Intelligence and Machine Learning are also playing a significant role in the accounting industry. These technologies analyze financial data to find patterns and trends that can be used to predict how the firm will do in the future.?
In short, there are many advantages associated with automating financial processes and making it possible to fulfill the majority of accounting activities, all while freeing up resources for other endeavors like practice management or accounting marketing plans.
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3. Better understanding of client businesses
Accounting firms must learn more about their client's businesses. By understanding a client's business, accounting firms can provide more relevant and tailored advice to help clients make better decisions and improve their financial performance.
Ways that accounting firms can gain a deeper understanding of their client’s businesses:
4. Help you with data security
Nowadays, cybersecurity is a growing concern in the digital age we live in. Businesses must take action to safeguard themselves and their clients from cyber threats as sensitive information is shared and stored online in increasing amounts.
One way to do this is through the use of encryption and smart contracts in the accounting industry.
Encryption and smart contracts are powerful tools for enhancing the accounting industry's cybersecurity. By using these technologies, businesses can protect sensitive information, automate financial transactions, and speed up accounting.?
However, it's important for businesses to keep in mind that cybersecurity is an ongoing process, and they should have a plan in place to monitor and adapt to new threats as they arise.
You can learn ways to cyber-secure your accounting firm here.
5. Client-practice integration
Accounting firms are integrating with their clients through the use of client portals. Client portals are websites where clients can access their financial data, communicate with the accounting department, and submit invoices and receipts for processing.
Additionally, firms are utilizing accounting technology to streamline their internal operations.
The integration of clients and practices is a trend that is becoming increasingly popular in the accounting industry. Cloud-based accounting software, client portals, and automation tools help accounting firms work more efficiently.
6. Bridge the talent gap through offshoring
The way technology has revolutionized business, companies can build a global team and access talent from all over the world.
Accounting technology has paved the way for distributed workforces and allowed remote work so accountants can provide services regardless of their current location.
This has led to a growing trend of businesses offshoring tasks to access a global pool of accounting talent, reducing costs and improving the firm’s efficiency.
Accountants are now able to get more work done in less time. With the right technology and talent solution provider, you can:
This simple but rewarding investment has a great effect in the long run because you’re not only building a formidable team to run your organization, you’re building a network with a global team.
Over to you now!
It's high time to adapt new ways to use technology as much as you can free up your resources, and focus on your growth.
By taking the right actions today to increase your accounting efficiency, your company will be in a better position to reduce friction, remove obstacles, and provide your clients with a more seamless experience both now and in the future.
Technology can be used to accomplish this, and scalable process automation can be built so that your staff can spend more time generating leads, predicting financial gains, and resolving other business issues.
With Ace Global, you may quickly and easily expand your client base without increasing your workload. Outsource your services to our firm and let us help you reach potential clients and showcase the value of your accounting services, all while using the top technology to secure your data.