How Accounting Has Changed with Technology
Posted on 24th March 2021 at 13:00
Every sector has changed due to advances in technology but accounting in particular has transformed beyond recognition. Only a few years ago an accountant’s surroundings were primarily composed of overflowing filing cabinets, an overabundance of stationery, and possibly even a rather dangerous vertical spike for storing receipts.
Fast forward to today and it’s very hard to tell an accountant’s workstation from that of most other professionals, which is all thanks to positive changes brought about by evolving technology.
The most obvious change that technology has brought about is cloud accounting, which replaced huge volumes of paperwork to create a far more efficient bookkeeping system. The cloud has enabled businesses to store all of their financial data in a centralised cloud, which offers unrestricted access to authorised parties whilst blocking out hackers, malware and other cyber threats. This also did away with the risk of losing crucial documentation due to flood, fire, criminal damage or plain old accidents.
Precision at all times
Cloud-based systems didn’t just make desks much tidier, they also gave accountants the power to analyse data much more quickly and precisely. This means a far greater understanding of how a business is performing, extremely accurate categorising of income and expenses, and not a single transaction lost or unaccounted for.
In the process, this depth of detail makes for foolproof budgeting and forecasting, which helps a business to learn from its previous year of operations and use this insight to improve profitability.
No more lost receipts
As well as fantastic desktop software, many cloud accounting platforms also come with apps that a business owner and selected staff can use on their phones.
When you consider how many expenses aren’t claimed against because receipts are lost or simply forgotten about, it really can add up over the course of the financial year. Whether it’s buying lunch for a client, filling up on petrol for a business trip, train tickets, or simply purchasing a new stapler whilst out and about, all of these expenses should be logged against the company.
With apps such as Xero and Receipt Bank, all you have to do is take a photo of the receipt and upload it to your accounting system from your smartphone. This usually takes less than a minute and then you can throw the receipt away, as proof of the transaction is recorded immediately.
Diversified roles for accountants
When meeting with a prospective client, we TreyBridge asks them whether their current accountant is a history teacher or a pathfinder.
Most come under the first label, as all they do is tell you what you’ve spent and how much tax you owe as a result. Our specialists come under the second, as we use this information to create a practical plan that will help you to fully understand and take control of your finances.
We call this Navigating Your Numbers and it means the difference between surviving and genuinely thriving. Which would you rather be?
We use technology wisely
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