6 Ways Accounting Software Has Changed the Accounting Industry

In recent years, technology has developed at an exponential rate. The evolution of machines, software, and the internet forever changed how people work, play, and live. The same goes for accounting software. With its introduction, the accounting industry has witnessed several shifts and improvements that had accountants and business owners rethink how accounting contributes to their company.

Streamlined business operations, easy distribution of data, and automated processes are only some of the perks of using accounting software. To help you understand this better, here are some of the ways accounting software has transformed the industry.

Cloud-Based Systems

When it comes to the internet, business owners usually think of marketing tools, such as websites and social media pages. However, the creation of the cloud has opened up numerous possibilities.

Simply put, the cloud refers to all services, software, and applications that you can access over the web. Hence, having a cloud-based system means that you can access business information and complete tasks online. It comes with several perks, including:

• Back up data in case physical documents are lost, misplaced, or destroyed
• Adequate storage space for company files
• Monitor data changes and access in real-time
• Updated and accurate data
• Easy access anywhere with an online connection

All of these features are significantly helpful in accounting. For example, different departments can enter data and information in the cloud. Since it is centralized, accountants can easily access these data to generate financial reports and conduct other daily tasks.

Reduced Margin of Error

In traditional accounting, accountants mainly use pen, ledgers, and calculators to accomplish quotidian assignments. They then write and rewrite numbers into different ledgers and make sure that they match and create reports. This process is highly prone to human error.

With accounting software, data is updated in real-time from their corresponding departments. This means that the information you are accessing online comes directly from the source. It grants accurate and consistent data for accountants and company decision-makers to use. Moreover, it also avoids unwanted consequences from inaccurate reports, such as tax penalties and financial losses.

Mobile Accounting

Mobile devices such as laptops and cellphones have become an integral part of people’s everyday lives. Whether for work or play, mobile devices have numerous functions and possibilities. Unfortunately, not all businesses have realized their potential.

Some of the things you can do with mobile accounting include gathering signatures, capturing receipts, and creating invoices. Since you can access the system remotely, you can acquire and upload these pieces of information in real-time, streamlining the process.

Expanded Accounting Skill Sets

The stereotype of the white-collared accountant endlessly crunching numbers and balancing books is slowly changing as more companies implement accounting software. Today, accountants use not only calculating skills, but also IT (information technology) and even business skills.

IT skills are crucial for accountants to use the program effectively. Meanwhile, as several accounting functions are automated, accountants can allot the saved time to analyzing data and formulating financial advice for their clients. Clearly, the role of the accountant has expanded far beyond what its name implies.

Refocused Accounting Goals

The purpose of accounting has always been to take account of all the company’s finances. However, due to accounting software, barcode technology, and other ERP (enterprise resource planning) features, several of the time-consuming tasks have been automated. With the extra resources, accountants now have more time to conduct value-adding tasks and improve their services.

Hence, the goal of accounting is no longer only to calculate finances and generate reports. Accountants can refocus their energies on helping their companies and clients reach their business goals.

Improved Customer Relations

All of the points listed above contribute to an important aspect of business management: customer relations. Easy access to information, updated and accurate data, and automated operations help streamline workflow and accomplish transactions more effectively. As the quality of your services improves, it will build brand loyalty and attract more potential clients.

Overall, accounting programs have changed the business landscape. As time goes on, more and more companies will surely implement them to boost their accounting departments and improve their services.

That said, there are different kinds of programs available in the market, each catering to a different industry. To find the most suitable accounting software for your company, you need to partner with a reliable systems provider, such as ANSI. The Philippine-based company has served numerous companies for over 30 years, playing an integral role in their growth and expansion.