6 Ways Accounting Technology Boosted the Accounting Process
The use of Information Technology (IT) in today’s accounting systems is one of the time’s biggest breakthroughs. It paved the way for the use of IT networks and computerized accounting systems. A simpler accounting process emerged from this technological progress.
Today, automated systems replaced the manual paper-based accounting process. This system eliminates the laborious part of accounting. As a result, accountants are taking the role of a financial advisor. They are now focused on information analysis. Now, they have more time to assist in improving the company’s financial condition.
The progress in accounting technology transformed the accounting process and profession. How did these changes come to be? Here are the top 6 ways in which accounting technology has improved.
1. Cloud-based Accounting
The birth of cloud accounting is a turning point of the century in terms of finance. It involves an accounting software hosted on a remote server- the cloud. Through cloud accounting, you can access and process data online anytime anywhere. It also allows employees to work away from the office. Furthermore, automatic and real-time updates eliminate the problems with data redundancy. In effect, you create more accurate records and prepare financial reports swiftly.
Automation lets computerized accounting systems handle daily and recurring tasks. This is done through built-in instructions and formulas. Posting of transactions to ledgers and reports can be completed instantaneously. As a result, the accounting process is simpler and smoother.
Automation also eliminates insignificant tasks. It created more time for analysis, brainstorming, and strategy formulation.
3. Mobile Accounting
Cloud accounting paved the way for accountants to work through any device that is connected to the internet. Many accounting software companies have taken advantage of this to pioneer the age of mobile accounting.
Using mobile phones to work is a great advantage to accountants of small businesses and freelance accountants. It allows them to connect through their mobile phones. This means fewer time lags in answering queries and issues when they’re away from their computer or the office.
4. Big Data
As the business grows, the system handles more and more data. Using this data to gather information may be crucial in making the right decisions. Thus managers cannot afford to let go of any data just to make room for more.
Solving this issue, accounting technology has improved the storage systems’ capacity to securely. Now, they can handle large-sized data. Consequently, accounting solutions now come in packages with larger storage. With this, the accountant and the management can make better-informed examinations and decisions.
5. Online Solutions
Accounting solutions aid set up accounting records. These tools are especially useful when starting a business. Cloud-based accounting software such as Quickbooks Online and Xero are now very much accessible even to small businesses. With these user-friendly platforms, accounting and bookkeeping responsibilities can be done more efficiently, even by those with less accounting knowledge.
6. Online Tax Filing
Tax filings are known to be meticulous and time-consuming. However, with today’s technology, even filing of taxes can be done through the internet.
Philippines offers online options to taxpayers. Filing and paying of taxes can be done through Electronic Filing and Payment System (eFPS) or eBIRForms. Both options are done through an online platform. Companies can now file tax forms electronically and pay through electronic fund transfers. This channel proves cost and time-efficient.
Development in technology changed the means of business and transactions. In turn, business owners are taking the steps to keep up with the changes.
3E Accounting aims to help companies in dealing with this change. 3E proves capable of providing efficient Cloud Accounting services in the Philippines. Do you need assistance with your transition from traditional to automated accounting? Do you need advice on issues with your accounting system? contact 3E Accounting today and be in stride with the age of accounting technology.