Technology is changing accounting as we know it. No longer do accountants use pencils and papers to input data. Instead, they use a combination of accounting software and scanners capable of digitizing paper documents. Filing cabinets, too, are now obsolete after being replaced by cloud-computing.
It allows accountants to modify and share documents even while on the move. Social media, on the other hand, is the modern accountant’s marketing tool of choice. Let’s look at each of these changes in detail.
1. Accounting Software
Accounting software has changed the accounting field in two ways. One, it reduces the likelihood of error. And two, it increases accounting accuracy as a result. By doing these two things, the software, then, allows accountants to audit and account better.
And with more accurate books, businesses incur less tax penalties, and the management and shareholders fight less over the numbers. So as accounting software advances, more benefits are on the horizon.
But there’s a catch – to use the software effectively, accountants must continuously hone their skills and keep up with these advances. Fortunately for them, most accounting schools, such as New England College, include computer software packages as part of their course. And taking a New England College online course allows you to complete your degree on your own time.
2. Optical Character Recognition (OCR)
Unlike paper documents, digital documents created by accounting software are easy to edit, transfer, sort, and search. Unfortunately, even with the software, accounting procedures still generate paper documents, such as hand-written receipts.
A problem of how to digitize such documents, then, arises, for to do so manually would be tedious and time-consuming. The solution lies in OCR technology. An OCR enabled scanner quickly and accurately converts hard-copy documents into digital copies.
3. The Cloud
As mentioned earlier, digital documents are easily edited, transferred, searched, and sorted. To use these characteristics to their full potential, accountants use cloud-computing technology also known as the cloud.
Because it’s internet based, the cloud lets them share and jointly work on digital documents, reports, and information. Better still, accountants can do so on demand, regardless of either time or location.
4. Mobile Devices
To access and store documents in the cloud, accountants use a computer when they’re in the office. But when out of the office, a computer is not always close by nor convenient to use if it is.
In such cases, they rely on their internet-enabled mobile devices instead. The apps in these gadgets allow accountants to perform basic accounting tasks, such as sending receipts or making expense claims.
5. Social Media
Mobile devices and the social media phenomenon go hand in hand. People carry one to stay in contact with friends and family while the other lets them do just that whenever they want. As a result, the two are inseparable, and accountants know this.
So, to easily reach clients, both existing and potential, they, too, have joined the social media space. In fact, social media marketing is now in almost every accountant’s business development strategy.
Technology plays a major role in how accountants and accounting firms conduct business. One look at the benefits tells you this will not change anytime soon.