Accounting Technology has undoubtedly changed the landscape of the accounting and bookkeeping industries over the years. While these advancements have provided a welcome change, bookkeepers and accountants have had to pivot their businesses to keep up.
Here are some of the effects technology has had on accounting and bookkeeping.
Computerized Accounting Technology Systems
Gone are the days of handwritten financial statements, paper ledgers, and manual spreadsheets. Information technology has provided the ability to input transaction and company information into computer systems. This allows financial professionals to tailor and streamline all these documents with just a few clicks of a mouse.
The creation of software tools has also further cut down on time spent calculating and creating financial documents. Bookkeepers and accountants have had to learn how to use various tools for every step of their job. This includes specific software for income taxes, audits, and everything in between.
Though each new system has its learning curve, technology allows accountants and bookkeepers to spend less time inputting and creating financial documents. This time savings enables them to devote more time to serve as a dedicated advisor to their clients. Their clients, in return, can make smarter financial decisions to improve their company’s bottom line.
One of the most significant benefits accounting technology has had on the industry is improved accuracy. Mathematic verification processes and standard defaults reduce or eliminate out-of-balance journal entries and other mistakes attributed to human error.
Business owners can also input transactions and other financial information, working together with their accountant or bookkeeper to stay up-to-date on their business’s financial health. With so much at stake, technology has also brought more security to the accountant’s firm. It ensures that only the most qualified professionals can access the personal and confidential information their clients trust them with.
Faster Data and Document Processing
With the computer doing most of the work, processing time has vastly improved. This also means that accountants and bookkeepers spend less time on individual transactions, especially at the end of each accounting period.
We pass these savings onto the business owner as the accountants’ billable time is much less than it used to be. However, that doesn’t mean quality suffers. In fact, reports are streamlined and tailored to each industry or client specifications.
The result is completely accurate financial statements that are easy to read and understand, allowing the business owner to make quick decisions without waiting on the accountant or bookkeeper.
Better Stakeholder Reporting with Accounting Technology
For those businesses in need of external financing or investing, external stakeholder reports are essential. Technology has improved the reporting process, allowing business owners to receive profit-and-loss statements, income reports, and balance sheets more timely than ever before.
Growth opportunities and expansions are good for business, and you don’t want your financial documents to let you down. Potential financiers and investors can more easily determine if a company is worth the risk, opening the door for a bigger and brighter future.
Working with a Tech-Savvy Professional
Technology and software programs are only as good as the person using them. At JStevens Accounting in Annapolis, Maryland, we can handle all of your bookkeeping and accounting needs. Our team uses the most up-to-date software programs, allowing us to spend our time doing what we do best; advising you on how to make the best financial decisions to help your business flourish.
If you’re looking for someone to partner with every step of the way, contact us today for a free consultation.