Accounting and Technology in 2021 – How Things are Changing?

Accounting Technology

January 27, 2021

Technology has always been perceived to be a double-edged sword. In 2020 technology has, however, proved itself to be a boon as without it we certainly would not have been able to surface as we have in the global pandemic situation. Thanks to technology, accounting was able not to sink but swim through 2020 and now in 2021, it will still stay afloat. Accounts have always been viewed to be an orthodox and old school line. However, with the national lockdown at its heels, hardcopy files have finally given way to cloud accounting. Had it not been for remote working and internet connectivity, employers for instance would have had a real problem in furloughing and paying their staff.

Cloud accounting has now become the new game-changer. Cloud accounting software is easier to use, does not need to be manually updated and doesn’t eat up space on your computer. And the best part? You can access it from anywhere! Hence, this is a sure win-win, especially considering the uncertain times. A reason cloud accounting might seem attractive is also the host of features included which consist of:

  1. Asset management and financial reports
  2. Payroll management & processing
  3. Accounts receivable
  4. Cash Flow analysis
  5. Expenses claims
  6. Forecasts based upon stock and inventory
  7. Various other types of bookkeeping related online tasks

Accounting firms offer clients with a package of subscriptions, which can be monthly or annually done as this is for cloud-based applications that a client can use to access this data online.

The technological wave

Previously it wasn’t only the accountants who preferred archaic working practices. Clients too felt more comfortable with a pile of paperwork. However, now since due to social distancing norms and unexpected lockdowns, clients also have realised that technology might be the way out. Instead of face-to-face consultations with accountants, telephonic talks and video conferencing have now become the new favourites. Clients no longer are content for accountants merely to relay figures, and the role of an accountant has also evolved. Now software is being looked upon as more reliable and as a means to lower human error.

Not just accountants but also consultants

Previously clients were content with accountants dealing with just their accounts related work. Now the emphasis is also on getting business-related advice and gleaning the maximum benefit from all the accountancy related reports.

Data needs analysis

Business owners have now begun to be proactive. Instead of treating reports as merely a bunch of data they have instead moved further and have understood that an expert is the best bet to analyse data. Accounts are no longer treated as a set of the mandatory paperwork. Expenses, purchases, sales reports are all means to better analyse the financial health of a business.

Remote working – the way ahead

Through remote working, accountants can provide a new level of flexibility and security to their clients. Any business in the current scenario needs to be able to go ahead on the technological front and can only be done if the business is ready to embrace technology. Clients do not need to buy accounting software or worry about updating it. Instead, they merely have to shift accounts out-house which will save them considerably on the overhead costs.

Flexible working

As technology is helping to speed things up, it is providing a much-needed breather to accountants and business professionals alike. Now, since the processing time is faster, accountants are not in too tearing a hurry for the data to be ready. Also, since accountants have a large resource base ahead of them, they can be more open to an advisory role.

Accounting is considered to be the business language. Doshi Outsourcing helps in simplifying this language for business owners by going the extra mile. Speaking the accounting language, simplifying it, and solving day-to-day accounting queries are all part of the package. If you are keen to start remote working or would like to switch to virtual accounting, be sure to contact Doshi Outsourcing on 0208 239 4999 - your ideal accounting outsourcing partner for all your outsourcing needs.