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By S Mithunn, CEO, Mibook

Traditional accounting and bookkeeping methods are changing rapidly in the digital economy; to remain relevant in this dynamic economic environment. Accounting for e-commerce businesses has been globally recognized as a challenge, with tax authorities admitting that businesses operating in this disruptive environment need more advanced bookkeeping and bookkeeping methods. Technology has been a vital part of change in this industry – with a plethora of dynamic accounting and bookkeeping software in their arsenal, today’s accountants no longer have to struggle to keep their finances up to date. business with real-time data. Instead, the role of a modern accountant is rapidly transforming into that of a business advisor.

From traditional accounting to accounting software

Following the introduction of cloud-based software and technologies in the industry, the industry and the role of the modern accountant have shown signs of changing. These technologies allow business owners, especially MSMEs, to enter, modify and record accurate financial information themselves wherever they are and to chat with accountants, who also do not have to be at the same location. Since all relevant information is at the fingertips of all parties, the end result is more informed decisions for the business, in line with updated objectives.

The main ways in which technology is disrupting accounting and bookkeeping methods are:-

– Innovative and efficient tax software – Error-free accounting that minimizes the risk of penalties is an industry necessity. With the quality of tax software available today, accountants can ensure improved accuracy with near-zero margin for error while streamlining audits. Therefore, the new era accountant can take advantage of new accounting software to discharge their responsibilities efficiently and accurately, and faster than ever before. There is, however, one necessity to maintain these efficiencies – accountants and auditors will necessarily and continually need to train themselves in the professional sphere as standard now in order to stay current on all emerging advances.

– Cloud computing –Cloud computing technology enables the sharing of computer processing resources and on-demand access to data on computers and mobile devices between affected parties. Hence, it allows accountants to perform tasks and provide financial reports without being tied to a particular location or device, thanks to the cloud. This allows accounting to focus more on the best way accountants can help businesses – delivering top-notch business strategy, without being burdened with non-essential process details.

– No device dependency – Advances in accounting technology offer more and more freedom to computer owners; Mobile Accounting allows them to access data even on their secure mobile devices. This is the result of improved mobile connectivity and helps to bring accountants and their clients closer together.
Tech companies are taking advantage of this golden opportunity to launch products that can now be considered part of the mobile age of accounting. These mobile applications allow companies to submit invoices, attach receipts and generate expense reports from their tablets or smartphones; helping them run their business while on the go.

– Artificial Intelligence (AI) & Robotics – AI and robotics help automate complex and repetitive tasks and processes with unparalleled precision. They are thus known to increase work efficiency. Since accounting and bookkeeping consist of many small, repetitive tasks and elements, as AI and robotics minimize or eliminate them, accountants can use their time and effort in a different and more efficient direction. .

– Digital payment collection system -The future of all accounting applications lies in automating payment collections and pending invoice balances. Once you have technology in place that reminds you of pending invoices and also sending automated payment links for collections, it makes life easier for accountants. Nowadays even customers don’t like call remnants, instead prefer sms/whats-app remnants with payment links. Thus, it can easily be said that these emerging technologies are the major reasons for the modern accountant to become more of an essential business partner than just an accountant before.

Accounting and bookkeeping had not changed in the least for a long time; now there seems to be an inside-out transformation of these traditional processes in the best possible way. By embracing this rapidly changing accounting landscape, accountants will not only have the best auditing and accounting support to offer their corporate clients, but they will also change their own portfolio – becoming the critical thinkers and decision makers who are essential to the general operation of the business. .