We are all aware that there are several advantages of technology in accounting. There is the fact that it automates most of the manual tasks such as reminding clients of unpaid invoices, preparing tax reports, and calculating tax rates and discounts.
In this article, however, we would like to highlight three benefits of technology in accounting that not everyone appreciates. Hence, these individuals are still sitting on the fence on jumping on the accounting software bandwagon. They think their current method is enough to complete their tasks.
If you are one of them, this article is for you.
Overlooked advantages of technology in accounting
1. Accuracy
You’ve been working all afternoon looking at numbers and performing computations. Hour after hour, going back and forth on your calculator and making sure that your results are correct. However, when you make the final calculation, it doesn’t add up to what you were looking for.
Your receipts are now incorrect because you missed a step. How is that even possible? Now you have to repeat the whole process, and your eyes are weary more than ever.
This is where technology comes in and solves your problem. Today there are different kinds of accounting software that can fit your company’s needs. You can rest assured that the computations that you make are going to be accurate at the push of a button.
Everything is already built-in based on what you need. Also, if you require something different, you can customize the formulas any which way you want. The important thing here is that it stays accurate and it will!
Accounting analyst Joel Curry stated it very clearly that accurate data encourages efficiency, profitability, and expansion. On the other hand, inaccurate data can lead to company losses and in extreme cases, bankruptcy.
The role of technology in accounting is definitely accuracy among others that are equally important. Transactions that you make require just one entry while manually computing may require two or more.
Technology assures accuracy which eliminates mistakes. This is something anyone and everyone can get behind.
2. Efficiency
The role of technology in accounting is to make it more efficient. There are plenty of new software and advances that can perform this task.
With today’s high-speed communication, accountants can easily get in touch with their clients and update their financial statements. Everything can even be done on mobile devices like smartphones and tablets.
One of the more recent technologies that help people store vast amounts of data is cloud computing. This is not something that is stored high up in the clouds or radio waves in the atmosphere. It is computing based on the internet where you can share resources and data to other computers and devices virtually on demand.
This allows accountants to perform financial tasks from any location and they can easily share critical reports efficiently to their clients through the cloud. It is very interactive. Both customers and accountants can forge a stronger relationship no matter where they are around the globe.
Another technology that provides efficiency is Optical Character Recognition (OCR). This amazing technology can convert scanned paper documents, PDF files, and even pictures shot by a digital camera into searchable and editable data.
So let’s say you have a report on the payroll numbers but have no time to write them down in a report. You take a picture of it instead and then you can use OCR software to analyze the characters and numbers in your picture optically.
Once it finishes analyzing the image, it can then convert the numbers into data which you use, compute or edit any way you want. You can do the same for checks, receipts, invoices and other financial statements that need may need conversion.
Accounting has never been more efficient.
3. Security
Now when you think of cloud computing or any other technology that involves the internet, you might think that it’s not secure and prone to hackers or malicious software.
Don’t worry because according to the Global Cybersecurity Index, the U.S along with Canada, rank at the top regarding the implementation of cybersecurity defenses and preparation efforts. So rest assured, your data is safe from any cyber threats.
Security is the top priority of all software companies especially accounting software companies. They make sure that your data is secure and well-protected online. That means that you can access your clients’ information with confidence and ease no matter where you are.
In other words, one of the advantages of accounting in technology is security. And you can be sure that all the safety precautions and anti-virus software will be updated and put into effect second by second. This will give accounting professionals the needed confidence to computing online and safely and efficiently.
So…
The advantages of technology in accounting is aplenty. The core ones are accuracy, efficiency, and security. Everything else comes from those most important points.
Therefore if you want to get ahead in your company or your own accounting practice, you should significantly consider applying technology in your processes because this would definitely propel your work and career forward in this age of high-speed internet and advanced computers.
Find out what technology suits you as an accounting professional and take that plunge into a new world of accuracy, efficiency and security.