How Is Digital Technology Shaping the Future of Accountancy For Good?
Remote working is no longer just a trendsetting buzz-word that businesses were seen leveraging recently. It has become slightly more than that. Until a few years ago, business owners were often compelled to hire an underqualified and under-experienced staff owing to the lack of skilled personnel in close proximity. However, the cloud happened and times have changed since.
Most of us have heard how the market giants like IBM are promoting the work-from-home policy. These days, many employees, and not just the females, have the luxury of working from remote locations. When you try to dig into the reasons, there are two prominent factors that come into play-
- It helps save the operational cost. Fewer employees on the floor mean reduced expenditure on hardware, software, and overall employee maintenance.
- It gives firms the option to hire a highly qualified candidate, irrespective of the geographical barriers existing in-between.
How is the Remote Working Structure Helping the Accounting Industry?
There is no doubt about the fact that the remote working structure has given accounting the makeover it needed. But what exactly are the positives of the cloud entering the accounting industry? Let’s discuss:
Environment and Efficiency Goes Hand in Hand
The cloud is not just technology that introduces efficiency in the accounting process. Of course, making entries on the heavy ledgers, maintaining the sheets, and jotting everything down is a huge deal for accounting firms. With cloud-based applications and services, firms have not only enjoyed a time-saving day-to-day process but have also witnessed a considerable reduction in errors.
However, what is even more appreciable is the fact that businesses have gone a lot more environment-friendly with the help of cloud technology. Not only do these cloud-based apps require no paper to function, but they also have promoted the idea of having a work-culture where the need for hardware is reduced to the minimum possible amount. Having everything on the cloud, handled by one cloud-services provider, firms do not need to have their own, elaborate, in-house IT infrastructure. This means reduced consumption of hardware and ultimately a reduced amount of IT waste. After all, a technology that favors the planet, favors all.
Helping the Modern Accountant Be
It is not only the firms that have gone global, but the modern accountant has also followed suit. Unlike the olden days, where accountants would pay regular visits to their client’s offices and run them through their accounts and bills, the professionals today can do it all sitting in their own office or even at home.
The cloud-hosted accounting applications such as QuickBooks hosting, have given the accountants and their clients the option to work in collaboration, round-the-clock, irrespective of their geographical locations. All they have to do is to have their data stored on a cloud-based app and share the credentials with their accountants to be able to access their files. So, being physically present as the traditional accountants- not that necessary anymore.
Tax Filing Errors Reduced Considerably
Tax filing season is tough for most business owners and quite understandably, for their accountants too. The culprit clearly is carelessly handled financial records. The cloud-based accounting systems do most of the heavy-lifting themselves, allowing accountants to have a smooth-running tax season. With everything appropriately documented, all in one place, the chances of accountants missing out on or overlooking a taxable value are significantly reduced. This allows accountants and/or tax professionals to accurately compile reports and also improve the chances of seeking tax reductions, owing to the clarity in reports.
Overseas Clients, Check
How often do you seek advice from doctors practicing overseas? Or take up an online course because it is not available in your area? Well, we all know friends and family who opt for cloud-based services for a slew of day-to-day needs. Similarly, with the help of the cloud, firms, individuals, and business owners can hire a remotely-located accountant to handle their finances and accounts. As already discussed above, clients and their accountants can conveniently collaborate with the help of the cloud, irrespective of the difference in their current locations and time zones.
Innovation in accounting has positively affected the accounting industry in more ways than we have discussed above. Although the four areas mentioned above can be seen prominently, other benefits tag along with them. Anyone who has first-hand experience working in the cloud understands that cloud is not just a trend but also a necessity. Any firm, whether big or small, that needs to introduce a technological push in their process without spending a fortune, can go for the cloud right away.