How technology is changing the way accounting works

For companies looking to streamline processes and increase efficiencies, one of the best ways to do this is by investing in technology that makes their lives easier, saving their staff time and cutting costs.

Image Credit

Technology is essential to most business functions these days. This includes accounting, where it allows finance teams to do more than monitor income and expenditure; they can also forecast future business trends, helping them have a real impact on a company’s success.

It’s also a focus of the UK government and HMRC, who are looking to digitise the way companies file their taxes starting with the 2018/19 tax year.

It is vital, therefore, that businesses consider the technology supporting their accountancy processes and identify the right accountancy firms to meet their needs.

Technological changes

There are two major trends in accounting where technology is having a significant impact. The first is modelling and benchmarking. Companies use accounting software to analyse the vast amount of data they hold and produce financial models that inform decision-making and benchmark their services to better understand risk. Accountants can feed into strategy development, produce more accurate budgets, and help increase a company’s revenue as a result.

Image Credit

The second technological trend is cloud computing, and the accountancy profession is seen as industry leaders here. Cloud computing allows accountants to access data from anywhere, which means they can provide a higher level of support to clients and in real time; there is no longer a need to visit an office and review hard copies. This improves efficiency and the speed at which work can be done.

Many accountancy firms are now using cloud-based systems. If you’re unsure about whether you want to invest in the technology, you can still access it by using outsourced accounting services such as those provided by www.mushroombiz.co.uk/homepage/services/accounting/.

Training

As technology changes, accountants will need to update their skills. Many software developers provide training on their systems as part of their implementation. There is also certified finance training available online, including cloud migration and data security, through Microsoft. The firm offers a certification programme and ISACA qualifications.

Using these technological tools, businesses can leverage their finance teams or external accountancy firms to help develop a clearer picture of their future financial growth and identify any risks to that growth.

Separator image Posted in Reviews.