Over the years, technology has transformed the way businesses function. The digital transformation is taking place in core operational areas as well as central functions including accounting and finance. Evolving technologies such as Machine Learning, Artificial Intelligence, Robotic Process Automation, Cloud Technology and Blockchain have made accounting more efficient and easier.
The recent survey conducted by Ernst & Young highlights that 92% of finance leaders across 89 corporates are on the path towards introducing digital transformation in the accounting and finance function. As per Statista report, the worldwide spending on digital transformation technologies and services is expected to be 239 trillion U.S. dollars by 2024.
Today, more and more organisations are reaping the numerous benefits of digitization in the accounting process and carrying on day-to-day tasks in a timely, effortless, and accurate manner. And some of the outsourced accounting firms have been leading in the forefront of digitization where the organisation gets dual benefits of outsourcing cum digitization with lesser hassles. Take a look at some of the positive changes that can be achieved in the accounting process by embracing digitization.
Benefits of Technology in Accounting Process
- Streamlined System and Processes
Digitization results in a streamlined accounting process that follows a definite standard, leading to overall improved performance. Digitization enables real-time access to important data and information as everything is stored on a centralised cloud system.
- Easy Access to Financial Information
With the use of advanced accounting software, reporting tools and dashboards, you can create financial reports such as cash flow statement, profit and loss report, balance sheet, working capital report, etc. within minutes. Besides, you can even set it on auto pilot mode where in the moment you do a monthly closure of books these reports are made available to you in a fly. Integrated systems and real-time reporting help you to access information at any time and from anywhere. This helps management make strategic decisions with increased accuracy, speed and reliability.
- Enhanced Data Security
With the growing number of cyber-attacks, data safety and security is the topmost priority for every organisation. New-age cloud based accounting tools allow you to back up your data and secure it safely on a multi-server environment with the help of security measures such as encryption, authorized access, two-factor authentication, firewalls, etc. And these systems are available on a monthly subscription so organisations don’t have to investment in creating these sophisticated infrastructure.
- Saves Time
Digital accounting makes the entire process of accounting much faster, whether it is budgeting, invoicing, reporting, or statements. A recent survey conducted by the Institute of Management Accountants states that accounting teams spend more than half of their time on low-level administrative tasks. Among the 800 participants who took part in the survey, over 50% believe that automation can reduce the administrative burden and enable them to focus on key business tasks.
Digitization reduces the need to hire a team of professionals to manage the accounts of a business. Moreover, the adoption of digitization leaves no room for manual errors as data is automatically recorded with the help of accounting tools and software. This eliminates the cost that would have otherwise incurred on rectification of manual errors. All of this results in drastically reducing the operational costs of business.
- Business Continuity and Remote Accounting team
Digitization was biggest boom in the era of this pandemic since the least impacted businesses were those that used these accounting and financial technologies. They were able to set remote accounting team leading to zero business disruption. Digital transformation has enabled such organizations to respond and thrive during the pandemic.
Digital Transformation in Finance and Accounting
The emerging digital technologies are making it simpler for businesses to manage their operations more efficiently. Implementation of these technologies facilitates the development of timely financial insights and helps you gain a competitive edge in the market.
With the countless benefits of digitization, it is time that you set up a digitization plan for your accounting process. Finsmart is a leading player in Outsourced Accounting and Payroll Services. We use these powerful technologies that contribute to digital transformation in the financial sector. We also help you implement and use technologies such as Machine Learning, Artificial Intelligence, Cloud Accounting, and Dashboarding tools to gain complete financial transformation resulting in better business decision making and thereby help scaling your business.