Accounting & Bookkeeping in the Digital Age
The digital age has changed the way we work forever, whether you are the individual that is part of that change or simply seeing the result of it. Accounting and bookkeeping is one such role that has significantly changed with the times, and some businesses are implementing this change quicker than others. If you work within this sector or adjacent to finance, here are some of the new processes and considerations that you will want to be aware of.
Long gone are the arduous spreadsheets and paper managed reports that made their way from one manager to the next when it came to that time of the month. Now there is bookkeeping software that takes the pressure of maintaining these enormous spreadsheets and instead illustrates all important information in a clear dashboard. It can also be a greater tool for relevant managers who want an at-a-glance snapshot, as well as this who love to dig in and get granular with the details if they are available. Digital bookkeeping and accounting also make it possible for your team to have holidays and time off, as things won’t fall apart without them.
Greater security threat or opportunity
Digital bookkeeping and accounting can potentially be a threat or opportunity, and it really depends on the research that is conducted and the IT support that you have backing up your operation. In saying that, paper and spreadsheet-based bookkeeping was hardly a secure strategy in past processes, but digital does open you up to outside eyes if this threat is not taken seriously. Businesses will be in a good position if they have modern computers that are hosting this software, so be sure to confirm that your tech is up to the challenge of taking your company bookkeeping and accounting online in a safe way.
Financially astute individuals can read the numbers and immediately get a sense of how the business is tracking, where a problem may lie, and any promising data. To other individuals, such as a General Manager or department managers, might not be so quick to get that snapshot and will need one or many reports to support your findings. This can become a job in itself for a finance team and sometimes it is not possible when there are other priorities. Digital tools can make data presentation a lot easier and often can be automated, ensuring that everyone has the information they need in a clear presentation so that the right decisions and actions can be taken. You can also designate dedicated logins so they can seek this information themselves.
Reduce the risk of human error
Human error is inevitable in almost all professions, especially the roles that are heavy in their double-handling processes. Accounting and bookkeeping can be quite repetitive if the necessary digital tools and accounting software are not being used. Many of the modern systems and resources are intuitive enough that you can enter the data once (or often it can be pulled automatically) and that can be plugged into other parts of the report and make the right calculations based off one or no manual data input. This should be a very attractive proposition to financial controllers and quality assurances professionals, not to mention the team who have more time in their week.
The digital age truly has enhanced the way we do work, and these tools and software are not to be shied away from but embraced for greater compliance. If your business is yet to take the plunge and explore the digital bookkeeping and accounting tools out there, make a shortlist of the best operators in your country and see if you can have a trial at these programs and see which options make sense for your business.