5 Ways That Technology Has Modernized Accounting

Ever since the practice of accounting was invented in 300 BCE, its goal has been the same (and will likely remain the same for the decades to come): to keep accurate and up-to-date financial records pertaining to cash flow, financial transactions, and financial performance, as well as to make this information available to whoever needs it. 

What’s changed, however, is the range and sophistication of accounting tools that are available to modern-day businesses. Traditional accounting processes like preparing income statements, balancing sheets, and tracking cash flow can now be done with new technologies like automation, cloud computing, cloud storage, and the integration of accounting software with third-party application programming interfaces or APIs.

To the great benefit of businesses around the world, such technologies have gotten more accessible and more affordable by the day. Let’s take a look at how technology has transformed accounting processes and how this shift in tech-powered, data-driven accounting has revitalized the business sector in a country like the Philippines.

1. It Has Specialized Accounting Processes for Particular Fields

First, technology has made the practice of accounting less generic and more suited to the work of particular industries. For example, there are accounting solutions that are built to adapt to the specific needs of smaller businesses as opposed to large corporations. There are also solutions that are designed to do accounting for hospitals and healthcare providers that’s made to accommodate their client healthcare institution as well as insurance companies, health maintenance organizations (HMOs), and other partners in the patient care continuum.

This is a big win for the business sector because companies no longer have to settle for expensive, one-size-fits-all accounting systems that don’t serve their needs. Thanks to the evolution of the tech sphere, businesses can choose highly specialized accounting solutions that are sure to help them meet their financial goals.

2. It Has Streamlined Accounting Processes to Be Faster, More Accurate, and More Efficient

Technology has also streamlined accounting processes to be less reliant on manual data entry and calculations, which are time-consuming and prone to human error. With today’s tools, accountants can work with huge volumes of financial data and still be able to balance their books quickly and accurately.

As a result, companies can depend on their accounting and finance teams to do more efficient work and to save them time and money. Businesses that are smart with their new accounting solutions can enjoy lower costs on overhead expenses like energy, overtime labor, and tech support, to name a few.

3. It Has Improved Businesses’ Regulatory Compliance

Regulatory compliance is a constant pain point for businesses, especially if their accounting processes take a long time to implement and are notorious for yielding discrepancies. Companies that continue to use outdated legacy systems that rely on manual processes will always worry about incurring penalties from their regulators.

But those that choose to invest in new accounting technologies will likely see a huge improvement in their regulatory compliance thanks to the timeliness and detail of their financial reports. With today’s accounting solutions, businesses can produce financial records that they are no longer afraid to pass to their auditors and to regulatory agencies like the Philippines’ Bureau of Internal Revenue (BIR).

4. It Has Helped Businesses Become Eligible for a Wider Range of Financial Perks

Another notable advantage that contemporary accounting technology has given businesses is greater clarity over their financial matters. This, in turn, allows them to be more conscientious about their record-keeping and their financial decision-making.

Greater mastery over its accounting system and a track record for keeping important financial obligations will make a business more attractive to investors. It may also increase a company’s chances of securing business loans from major lending institutions like banks. Both scenarios allow businesses to be more competitive, and it’s all thanks to modern accounting technologies.

5. It Has Helped Businesses Future-Proof Their Financial Housekeeping Processes

Lastly, new accounting tech has been a big part of the business sector’s transition into the digital age. Accounting and financial management are key areas for digitalization, and a company’s future success depends largely on whether it can adapt these two aspects of doing business for the digital era.   

Businesses that embrace modern accounting technologies can find ways to future-proof their financial housekeeping. Accounting solutions with features like data analytics will allow businesses to come up with on-point sales forecasts and revenue projections, thus helping them navigate the complexities of their financial futures.

Prepare Your Business for the Modern World with Specialized Accounting Solutions from ANSI Information Systems

For specialized accounting solutions, as well as the expertise to configure them for your business’s use, you can count on multi-award-winning solutions provider ANSI Information Systems. Consult ANSI to learn about accounting software that’s designed for particular types of business, like healthcare institutions.

Modernize your business accounting system to achieve longevity for your business and increase your customers’ and stakeholders’ trust in your financial performance and integrity. Ask us about the products in our portfolio and decide on the most viable upgrades you can make to your current tech stack for accounting.