How Technology Is Changing Accounting

By Accounting
Technology changing accounting

There was a time not too long ago when accountancy involved rule-lined notebooks and sharpened pencils, Filofaxes and handheld calculators. With the arrival of computers, the industry was changed forever. Spreadsheets and bookkeeping software revolutionised how number crunchers crunched those numbers.

Now, accounting is undergoing another digital transformation that has catapulted it firmly into the 21st century. As the tools available to the average accountant have developed and progressed over time, so too their job description has undergone an almost unrecognisable evolution. Read on as we take a closer look at the transformation of accounting at the hands of technology.

Clear skies thanks to the cloud

One major development which has completely transformed the face of accounting is the introduction of the cloud. It’s telling that over two-thirds of accountants worldwide already insist they prefer using the cloud to store their financial records rather than traditional methods, while the percentage of small firms which rely on it exclusively is projected to rise to 78% by next year.

Why this mass migration? Well, uploading all financial documents and data to the cloud allows its owners unlimited storage capacity, scalable server access, impregnable security features and access to their sensitive info from any device, anytime, anywhere. With all those advantages on offer, it’s no surprise that the cloud is one of the major contributing factors to how accountancy has evolved as comprehensively and quickly as it has done so in recent years.

Meanwhile, there are compelling reasons to make the switch from a purely business perspective, too. Public technology company Xero have found that accountancy firms which enjoy a 100% cloud-based client portfolio are adept at attracting new customers five times more prolifically than those who don’t, as well as experiencing an average annual growth rate of 15%.

Quite simply, those who don’t follow the example set by their competitors and migrate to the cloud are in grave danger of becoming left behind.

The attraction of automation

Of course, changing the location of your accountancy records from filing cabinet to online server is only a small part of the digital transformation process. Once the data has been uploaded, it is now perfectly placed for accountants to take advantage of the myriad benefits that automation offers.

For starters, the mind-numbing and time-consuming tasks of data entry, sending emails, filing invoices and transferring archives can be managed automatically, with little to no input from a human user. This eradicates hours of mindless labour in one fell swoop, freeing up accountants to tackle more important and more challenging endeavours that earn their clients’ trust, build their own brand reputation and take their business to the next level.

Of course, a human eye will be required to make sure everything is running smoothly and evaluate how the processes in question are performing. But with all of the heavy lifting undertaken by technology, accountants are afforded the opportunity to pinpoint inefficiencies, devise amendments to their strategy and optimise their operations in a way that simply was not possible before.

Gadgets and gizmos

As well as bigger advances in technology that target the whole business, there is also a steady stream of must-have devices and contraptions which can help to make an accountant’s life that much easier. Portable appliances such as full-size keyboards, scanners and shredders can turn any environment into a makeshift office. Meanwhile, ingenious additions such as screen filters protect sensitive data from prying eyes.

What do all of these inventions have in common? Working remotely. Given that more and more of our social interactions and personal transactions are taking place online, it makes sense that our business lives should follow suit.

Thanks to the incredible advances in technology mentioned above (and many more to boot), accountants are now more capable of leaving the office behind than ever before. This maximises productivity, reduces overheads and streamlines performance to achieve optimum results.

Keep your accountancy firm up to date

If you want to reap the rewards of cloud computing and remote working, Green Cloud Hosting can help. We provide hosted desktops for accountants that are secure, scalable and massively flexible, eliminating barriers in the way your team works.

If you want to talk more about our solutions, feel free to call our team on 0161 979 0691 or email info@greencloudhosting.co.uk.

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