How Technology is Reshaping Business Accounting

Traditionally, associated was associated with heaps of paperwork. Now, that’s a thing of the past. Learn how technology and virtual finance have revolutionised the accounting world for the better.

Historically, accounting was associated with toiling through heaps of paperwork and rapidly flicking through an abacus. Traditional accounting processes are slow, labour-intensive and prone to errors. However, a new wave of technology has eased accounting into the future — making this laborious and repetitive workload a thing of the past. From cloud technology to automated systems, virtual finance has helped businesses get off the ground and keep the market competitive. Specialised accounting software means better-quality services can be provided, delivering better financial strategies and business models. 

 

How exactly has technology reshaped accounting and, more importantly, how can it benefit your business? In this article, we will discuss a few digital innovations that have transformed accounting and its capabilities to support businesses.

Virtual CFO consulting with business owner.

Virtual Chief Financial Officer (CFOs)

A virtual CFO is a more affordable alternative to a traditional CFO which is usually an in-house executive role. You get the same services, such as professional business advice and account management, but on a flexible part-time basis. The main reason many startups fail in their early stages is because of a weak financial model — outsourcing a financial advisor for your business from the get-go can overcome this problem. 

Virtual CFO services provide business consultants with a new approach to work that is flexible and remote. Taking commute out of the equation can drastically improve work efficiency. Additionally, virtual CFOs can tailor their working patterns according to their client’s needs, orientating their availability around what suits them. 

Outsourcing an accountant is much cheaper than hiring an in-house CFO. You can hire a professional on a part-time basis at a fraction of the cost. Additionally, you get the same level of experience and expertise as a traditional executive role but at a much more affordable rate.

Virtual CFO consulting with business owner.
Cloud technology helping business accountants around the world.

Cloud-based technology

With a network of remote servers, cloud-based technology means business accounting firms can supply a range of services via the internet. The cloud has revolutionised recording and compiling data, with a wealth of information now easily accessible remotely and from anywhere in the world. 

 

Cloud computing makes accounting easy, efficient and productive. Additionally, it ensures all confidential information is stored safely with online security measures. There are many advantages to utilising cloud-based technology, such as access to tools that can expand your core business system. There is now software for cash flow forecasting, online invoicing and a range of industry-specific project management tools.

RPA automating accounting and bookkeeping systems.

Automation

Most notably, automated data entry has significantly improved accounting. Not only does RPA (Robotic Process Automation) routinely complete tasks for you, but it will automatically flag any errors. Additionally, dynamic accounting systems can be set up for payroll, tax, etc. — meaning the dreaded end of the tax year is now a breeze. 

Removing repetitive tasks, that are usually done manually, improves a professional’s ability to streamline workflow and improve productivity. Instead, your accountant can dedicate their time to more complex tasks such as creative problem-solving or nurturing interpersonal relationships. Instead of an exorbitant amount of time spent on crunching numbers, your accountant can focus on providing strategic business advice and delivering higher-value services.

RPA automating accounting and bookkeeping systems.
Business accountant analysing big data to forecast financial growth.

Data and analytics

Businesses have always utilised data to support decision-making and managing operations. Big data, on the hand, are sets of information that are too large to be comprehended by traditional accounting processes. With the use of great computing power, virtual finance can now process big data and much more in-depth business insight can be drawn out. 

Big data is being propelled by enormous growth in computing power and the plethora of new sources now available. Applying analytics to big data gives businesses many more opportunities to gain financial insight and predict future outcomes. Big data also allows professionals to deliver greater value and better input during the vital decision-making process. 

Additionally, automated systems can automatically detect errors making them easier to resolve during the early stages before it impacts anything else. The elimination of human error means mistakes can be easily resolved without creating a domino effect.

Technology has transformed accounting for businesses over the last few decades. Prior to adopting virtual finance, businesses had to maintain physical files and records on financial matters. These were inconvenient and prone to human error which led to difficulty with bookkeeping. Fortunately, computers were able to streamline this process by automating and simplifying accounting. Now, many business owners prefer moving into future technologies that help them grow their businesses even faster than before.

Are you interesting in future-proofing your business? Learn more about our professional accounting services, such as virtual CFOs, by getting in touch with us today.

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