THE DIGITAL AGE OF ACCOUNTING VERSION 5.0
Professional accounting has a long history, tracing all the way back to the Egyptians and Mesopotamia using clay tablet records as early as 2,000 to 3,300 B.C. Fast forward to 2019 with the age of digital transformation and technology is quickly evolving with user expectations, knocking on every accountant's door asking - are you ready to join the new age of accounting 5.0? (Why 5.0? 3,000 (BC) + 2,000 (AD) = 5,000 or 5.0)
Access to the powerful software and app solutions previously only available to the Big-4 accounting firms is now available and affordable to all accounting firms, providing new tools to work smarter, reduce operating costs, and increase profit.
But where should you invest in technology? Learn how to increase profit, job security, what are the three areas technology supports accounting, the six challenges technology solves, and facts vs. fears in "The New Digital Age of Accounting 5.0" Harnessing Technology to Empower & Upgrade Your Accounting Firm in 2019.
The Digital Age of Accounting
Accounting is one of the key professions that has evolved to support growth across every culture over the last 5,000 years. From kings and queens to business leaders and corporations, accountants have developed tools to enhance record keeping, accountability, compliance, planning, and information integration that enhances strategic decision making.
Fast forward to 2019, and accountants at the top are demonstrating how technologies can provide the tools accountants need to take their work and firm to the next level. The Big 4 firms that lead the accounting field - Deloitte, KPMG, EY, PWC - have invested heavily in their own in-house teams, developing software tools and app solutions for accounting, with second and third-tier firms following their lead.
Those embracing the digital age of accounting by developing or integrating technology into how they work, or the work they do, are getting a competitive advantage over their competitors, sending a message to their clients that “we are the future of accounting”.
Technology - The Tool for Profit Growth & Job Security
Contrary to some opinions, technology is not coming to take your job or reduce billable hours. In fact, it’s here to upgrade how you work so you can serve more or bigger clients, or take on additional services as a firm. Embracing technology opens opportunities to expand client services, staff responsibilities, and job security.
In 2018, the Association of Accounting Technicians (AAT) completed a survey with 250 accountants and bookkeepers asking “What might the future of the accountancy profession look like?” The results:
- 89% welcomed technology advances and saw them as creating new opportunities for accounting professionals
- 75% said the technology they are now using has made their job easier and freed up time so they can concentrate on providing greater value to their clients. This includes analyzing their accounts and records in order to provide business advice, sometimes as an extended paid service offering.
- 60% said they believe basic accounting processes will be fully automated within the next 5 years.
Three Ways Technology Helps Accounting
The survey identified three of the biggest ways technology is changing accounting:
- Business Process Automation Software: Manual tasks handled automatically by software
- Removes manual tasks like entering data, files, record keeping, etc.
- Frees up time for more valuable tasks - like client consultation and work
- The Cloud: Share processing power and storage online without physical servers on-site
- Changing the way professionals collaborate, store/share data and files
- Accountants work anywhere or while traveling and servicing clients
- Upgraded Accounting Software: Added features and increased accuracy of accounting software has extended service capabilities and reduced workload
- Increased capabilities to meet changing state, federal and regulatory compliance
- Enhanced record keeping - efficient, accurate, simple, and convenient
- Greater operating transparency for stakeholders, government, public, or investors
There is a long list of how accounting tasks can be empowered by different technology solutions, but have you ever thought about scrapers that have the power to recognize and validate how do companies handle taxes on employee perks? The thing about technology is that the majority of the ideas you wish could exist, to ease your daily life, can be developed, you just need to find the right development company that has the capabilities to do so.
Accounting Challenges That Technology Resolves
Accounting firms and accountants can adopt technology as a tool to enhance or simplify manual, cumbersome, or complicated tasks such as:
- Client data/record cleansing and migration - receive Software Advisory & service support
- Streamlining state, federal, and regulatory compliance updates to management and staff with Business Automation
- Enhance the effectiveness of criminal, money laundering, and other checks or audits with a custom Web App
- Integrate separate systems/apps leveraging NEO4J and Customer Software for workflows and data/record transfer (reduce record transfer errors or missing information)
- Streamline management's decision making with timely, accurate, and complete operational data with NEO4J or build a custom Web App
- Remove duplicated or unnecessary tasks with automation to free up staff time for more client work
- Increase audit and accounting efficiency resulting in faster delivery and greater accuracy (opportunity to increase firms rate, due to faster/better client services)
Accounting & Technology - Fact vs. Fear & Concerns
The results above tell us that most accountants see technology as a positive and powerful ally to help grow profits and ensure job security. But what are some of the concerns around technology negatively affecting accounting?
How to turn costly problems into profitable solutions?
When it comes to investing over spending on technology, consider these questions:
- Are you growing and thriving and know your options with technology?
- Do you feel you are falling behind, surviving, not sure where to invest in technology and might need guidance or support?
- Are you happy where you are, don’t feel you need technology, but haven’t considered that your competition might be investing in technology, or new accounting software that could impact the demand for your services?
Our team works with multiple accounting firms by providing tech advisory on investment decisions, customizing or building custom solutions, and offering an expanded tool belt of services to offer clients. Using the agile methodology we produce client-focused and value-driven solutions with speed, turning costly problems into profitable solutions.
Join Accounting 5.0 Partnering With The SilverLogic
Whether customizing software to match your needs or building a custom solution, our ever-expanding technology tool belt is here to support your firm's growth. From automating manual tasks to integrating dispersed systems and apps, our award-winning team is here to help support your accounting team turn costly problems into powerful and profitable solutions.
A partnership with TSL is choosing a team committed to excellence. Merging the latest tools with a team of seasoned professionals, The SilverLogic (TSL) delivers the solution your team needs to simplify and streamline how they work, so we can deliver the results your business deserves.
Schedule your assessment today with our team to answer your questions or concerns and learn more about our other services:
- Business Automation
- App Development
- Web Development
- Custom Software
- Code Audit
- Technical Writing
- Digital transformation
- Augmented Reality
- Alexa development
- Software Consulting
The future depends on what you do today. Start building your competitive advantage as the disrupter and leader in your field that grows with technology by embracing the future of accounting.