By S Mithunn, CEO, Mibook
The traditional ways of accounting and book-keeping are evolving rapidly in the digital economy; in order to stay relevant in this dynamic economic background. Accounting for e-commerce businesses has been globally acknowledged as a challenge, with tax authorities conceding that companies operating in this disruptive environment need more evolved book-keeping and accounting methods. Technology has been a vital component of leading change in this industry –with a plethora of dynamic accounting and book-keeping software in their arsenal, accountants today no longer have to struggle to update company financials with real-time data. Instead, the role of a modern accountant is swiftly transforming into that of a business advisor.
From traditional accounting to accounting software
Following the introduction of cloud-based software and technologies in the industry, the industry and the role of the modern accountant have been showing signs of evolution. These technologies allow business owners, especially MSMEs to enter, edit and save accurate financial information on their own wherever they may be and carry on discussions with accountants, who don’t have to be in the same location either. Since all relevant information is at the fingertips of all parties, the ultimate end result is more informed decisions for the company in keeping with the updated goals.
The main ways that technology is disrupting the accounting and book-keeping ways are:-
– Innovative & efficient Tax Software – Error-free accounting that minimises chances of penalties is a necessity of the industry. With the quality of tax software available today, accountants can guarantee improved accuracy with almost zero-error margin while also streamlining audits. Hence, the new-age accountant can leverage new accounting software to discharge their responsibilities effectively and accurately, and more promptly than ever before. There is however a single necessity to maintain these efficiencies – accountants and auditors will have to necessarily and continually educate themselves in the professional sphere as a norm now in order to stay updated to all the emerging advancements.
– Cloud Computing –Cloud computing technology allows shared computer processing resources and on-demand access to data over computers and mobile devices between relevant parties. Hence, it allows accountants to perform tasks and deliver financial reports without being bound to any particular location or device, courtesy of the cloud. This makes accounting bring more focus to the best way that accountants can help companies – by offering top-notch business strategy, without being burdened by non-essential process details.
– No device dependency – Advances in accountancy technology are increasingly offering freedom from computers to the incumbent; Mobile Accounting is allowing them to access data even over their secure mobile devices. This is a result of improving mobile connectivity and it is helping bring accountants and their clients closer.
Tech companies are using this golden opportunity to launch products that can now be safely said to belong to the mobile age of accounting. These mobile apps are allowing companies to remit invoices, append receipts, and generate expense claims from their tablets or smartphones; thus helping them manage their business while being on the move.
– Artificial Intelligence (AI) & Robotics – AI and robotics help in automating complex, repetitive tasks and processes with unmatched accuracy. They are thus known to increase work efficiency. Since accounting and book-keeping consist of several tiny repetitive tasks and elements, as AI and Robotics mininise or eliminate them, accountants can use their time and efforts in a different, more efficient direction.
– Digital Payment collection System -The Future of all the accounting apps lies in automating the payments collections and remainders for pending invoices. Once you have a technology in place which reminds you the pending invoices and also by sending automated payment links for collections makes life that much easier for the accountants. Now a days even customers don’t like call remainders, instead prefer the sms / whats-app remainders with payment links. Thus it can be easily said that these emerging technologies are the primary reasons for pushing the modern accountant to become more of a critical business partner from being a simple book-keeper earlier.
Book-keeping and accountancy had not changed in the least for a long time; now there seems to be transformation from the inside out of these traditional processes in the best way possible. By embracing this rapidly changing accounting landscape, accountants will not only have the best auditing and accounting support to offer to their client companies but they will also be changing their own portfolio – into becoming critical thinkers and decision makers that are vital to the business functioning overall.