Over the last decade, technology has been developing at an exponential rate. It has had a big impact on the way we live our personal lives, and the effect on the ways we work has been even greater.
Below we will discuss about the 5 crucial ways on how technology has changed the accounting and bookkeeping industry.
Cloud Computing Is On The Rise
The cloud was once feared by accountants because of the sensitive nature of the financial data that they work with. However, as cloud computing becomes more widespread and the myths and concerns regarding security are being dispelled, more accounting firms are embracing the productivity benefits of the cloud.
Technology Adds Accuracy In Work
Accounting and bookkeeping are not just about calculations and keeping transactional information. It is about the accurate computation of data. In the early days, pen, paper, and calculator were the only technologies that were used to perform calculations and input necessary information. But in today’s era of online transactions and digital currency, these means do not suffice. Due to the absence of technology, the probability of errors was high and computational speed was less. But now technology has improved both speed and accuracy in computations and entering transaction information.
More Diverse Roles For The Accountant
Accountants handle their client accounts by using accounting software and cloud computing, gathers data and make computations quickly and easily. Developments in accounting software and application have now given accountants more time on their hands for more diverse tasks. They are able to veer away from time-consuming number crunching and are increasingly able to expand into more specialized and strategic roles.
There are specialized mobile apps for accounting that help you send invoices, add receipts and create expense claims. These apps have made it easy for accountants to manage data and perform necessary actions with just a few swipes on your smartphone. Also, the data is safely backed up to the cloud that lets you access it as and when needed. Mobile accounting plays a significant role in strengthening relationships between an accountancy firm and its clients as you will be able to help your clients through apps if any issue arises.
The blockchain technology is transforming how data is stored, verified and accessed. It is a form of a ledger that records data or transactions in chronological order. Blockchain is set to revolutionize the finance and accounting industry. Blockchain technology provides two advantages that are transparency and immutability and it eliminates the chance of human error.
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Cloud Bookkeeping, Inc.
3281 E. Guasti Road, Suite 700
Ontario California 91761
Tel: +1 (909) 952-3804