Technological advancements have greatly impacted the accounting industry, to help create a more efficient and accurate modern technology assisted accounting practice. From the Sumerian clay tablets, the basic adding machines of the 19th century to the modern day calculators and cloud hosted accounting solutions, technological advancements have influenced accounting throughout the history of mankind.
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And this trend is only going to stay strong within the accounting industry, reshaping the entire ecosystem of businesses and accountancy in the future as well.
One such recent technological advancement which has somewhat taken the accounting industry by storm is the cloud and mobile technology. In this article, we shall briefly discuss a few pointers that cloud and mobile accounting brings to the table.
1. Real-time data analysis
Cloud-based accounting solutions or services brings along a plethora of benefits for accounting firms and individually practicing CPAs. Real-time access and analysis of accounting data are one of its major benefits. It allows accountants and CPAs to have up-to-date insight on all transactional and other financial information of their clients. This makes the collection of crucial accounting data easier and quicker for accounting firms and CPAs.
It also helps save a whole lot time by eliminating the need for manually and laboriously collecting, analyzing and sorting all financial and transactional documents. Real-time data analysis made possible with cloud and mobile technology enables accounting firms and CPAs to spend less time on data entry and more time of other areas.
It also means that they no longer have to be dependent on their clients to provide all the necessary data required for their practice and can now take on a more proactive approach for the sake of their clients, which also helps to increase the business value of their accounting services and solutions.
2. Modified data entry and collection
With the help of cloud and mobile technology, the data entry and collection aspect of accounting has changed to a great extent. Previously, before the digitization of documents and records, this facet of accounting practices was done on paper. This made consolidation and storage of accounting data cumbersome and inefficient compared to digital records.
By implementing Cloud and mobile accounting solutions, accounting data entry, and the collection has become very easy, where clients can easily upload all necessary data on shared cloud servers, with the help of authorized mobile devices like cell phones or laptops. This data can then be accessed and analyzed by their accounting partners, from anywhere in the world with the help of cloud technology and mobile devices.
The intelligent amalgamation of cloud and mobile technology simplifies and streamlines the entire process of accounting data collection and entry. It can also bring tremendous automation to this aspect of accounting and even notify the managing accountant or CPA on data entry errors and other data related issues beforehand, which helps to boost accuracy to accounting data analysis.
3. New development and growth opportunities
The numerous benefits that cloud and mobile technology bring to accounting have a tertiary effect which is not visible at the forefront and yet brings about a great many ways to develop and grow the client’s business. It also helps accounting firms and CPAs to add more value to their expertise and services in general.
The real-time data entry and analysis aspect of cloud and mobile technology enables accounting firms and CPAs to expand their profiles from mere financial managers to financial and business advisors.
The new development and growth opportunities that are created with proper and intelligent implementation of cloud and mobile technology also extends to the clients as well. With greater insights through more specific and intrinsic financial data, businesses can find discrepancies and issues within their operations and mitigate them accordingly.
4. Unprecedented flexibility
The fundamental intent of cloud and mobile technology is to promote flexibility. It may be in terms of work style, or location, or any other such aspect where the term flexibility can be implied. Cloud and mobile technology in the accounting industry allow both clients and accounting firms or CPAs to tend to their part of the accounting practice from practically anywhere and anytime.
This has created new opportunities for businesses and firms to experiment with their daily operations and optimize them to enhance their internal performance, by promoting collaboration among stakeholders and real-time access to accurate data. The flexibility element of cloud and mobile technology allows clients and accountants to access and analyze the same data simultaneously. This helps bolster transparency and accountability on both the clients and the accountant’s end, while providing more value to the accountants expertise.
It also allows businesses and their accounting units to scale their IT requirements according to their needs, scaling up or down easily and without any hassles. The flexibility brought forth by cloud and mobile technology working in tandem, also lets accountants and CPAs to perform their obligated duties from anywhere and through any internet connected device.
In the 21st century, the technological trends of cloud computing, mobile technology, and big data coinciding with each other have significantly changed the way data is processed, managed, and analyzed. They are not only adding compelling business value to both the accounting industry and their clients, but is also driving greater developments in other sectors as well.
The points mentioned above are only but a few benefits that successful and intelligent integration of technology can bring to the business and accountancy.