By Oumesh Sauba
Highlighting the importance of being digital has fueled the use of technology among Indian businesses. As customers migrate to online channels; Digitization is becoming an important part of the new normal, leading to a paradigm shift in how financial records are stored and maintained. Accounting, One of the most critical parts of running a business has also been transformed into a truly technology-enabled system. Widespread adoption of technology-led accounting software has led to a move toward business automation and artificial intelligence. Tasks that previously took months can now be done in minutes with the click of a button. This proved to be the most significant transformation of the business finance and accounting sector.
Removing device dependencies.
Traditionally, A business’s accounting team is surrounded by countless bank statements and myriad financial records. This requires a large physical space with large lockers to secure a hard copy of financial records. However, technological integration has transformed this practice into a computerized accounting system. The short space of digital apps only gives access to specific users; Access to information on desktops is restricted.
New technologies – cloud storage allows accountants to secure financial records storage with greater flexibility. This eliminates the risk of users snooping into desktops, reducing the risk of losing important data. All information can be stored in one digital app, allowing access to the desktop for specific information without misplacing files or being out of the office.
Cloud storage and modern accounting platforms allow you to store all records securely and keep them at hand anytime, anywhere. Many business organizations have implemented cloud-based accounting systems to organize data into actionable insights to improve business performance.
Data analysis
Business organizations always involve visualizing financial information for important business decisions. However, in practice, the possibilities of human error, It involves delayed results and makes it difficult for organizations to make timely decisions. In addition, This brought great complexity with huge opportunities to have a lot of resources and data to block operations.
Modern accounting software with integrated data analytics to accurately measure and visualize company financial records. It provides a deeper and broader insight into financial information that meets the needs of accountants. with precise predictions; Data analytics create value and accelerate business growth with accurate audits.
Simply put, accountants are weekly; Data can be monitored in real-time on selected parameters rather than monthly and yearly access. With the power of data analytics; Accountants can accurately process large amounts of data in a short amount of time and perform risk analyzes to improve business performance.
Automated accounting tasks
No industry sector or task is immune from the effects of automation. Eliminating the traditional manual process of recording financial data provides an easier way for accountants to perform their tasks more accurately and efficiently. Although running a business Owners and other executives spend too much time doing accounting tasks themselves.
After saying that, Accounting software has a lot more to consider. Accountants can handle finances, including tax allocation, more efficiently while maintaining their business. Instead of spending time managing day-to-day accounting tasks. Finance teams can focus on other productive tasks and see sales come in.
In addition, Traditional accounting has evolved from an error-prone to highly automated task. By eliminating the role of humans to some extent, the chances of entering incorrect information can be eliminated. In addition, Errors that used to take hours to identify can now be discovered in seconds, saving finance teams significant time and financial resources.
Ease of account compliance.
Compliance management is a stressful activity for finance teams. With economic uncertainty, With guidelines and legislation evolving at an unprecedented pace, accountants must ensure their accounts run smoothly without compromising on accuracy and compliance. However, Maintaining accuracy and being 100% flexible in today’s changing world is very challenging.
Modern accounting software ensures accuracy in financial reporting and flexible management. It simplifies compliance practices with reliable and timely reporting. This provides a wide comfort to accountants as well as businesses who meet every rule and regulation to operate ethically in the market. It also increases transparency and traceability across all members of the finance team.
Bottom line
Technology improves the financial performance of businesses by making the hassle-free task of recording transactions. As manual and error-prone tasks are eliminated, emerging technologies are driving accounting practices. Traditional accounting roles need to change, making way for greater accuracy and efficiency.
(Oumesh Sauba is the founder of NuBooks.. The views expressed are the author’s own.)
