The accounting industry today is going on a breakthrough with the technology provided by cloud computing. Cloud applications like real-time bank feeds, the single ledger, and the API (application programming interface) have changed the way accounting is done and there’s no turning back at this point – we are indeed living in an accounting tech revolution.
Digital disruption is not a myth, nor it is a phenomenon; it is a reality that we need to start embracing. As the so-called disruptive technology is slowly taking over, accounting firms must also innovate in order to keep up and meet clients’ increasing demands.
The Perks of First Movers
If we are going to refer to the Everett M. Rogers’ Diffusion of Innovations theory, we know that the early adopters or lighthouse customers were the ones who gain early access to an advantageous technology. Therefore, the firms who adopted the technology earlier were able to stay ahead and reap the benefits until now – higher margins, increased efficiency, and better client service. Some have decreased their fees to accommodate more growth, while others reallocated their resources to revenue-generating activities.
But accountants nowadays belong either to the early majority or late majority category: the early majority adopts after a varying degree of time after innovators and early adopters, while the late majority waits until after the average participant. Laggards are the last to adopt and that’s the least thing we want to happen in your firm.
The Edge of Cloud
Before, there was traditional desktop accounting software available to assist accountants and bookkeepers in streamlining their workflow. Just when we thought the accounting process couldn’t be more efficient, cloud-based accounting software arrived, marking another technology era. The best part is it uses the cloud as a platform which means it is more cost effective and time efficient.
The cloud allows you to collaborate with your team virtually which means you get a real-time overview of your finances anytime, anywhere. It also updates and backs up your files automatically. You can also integrate add-on business features like invoice, payment, reporting, CRM (customer relationship management), POS (point-of-sale), e-commerce, inventory management, and time tracking.
Imagine how much time and money this technology has saved. With these sophisticated accounting tools, accountants can shift from being a data entry machine to being a financial advisor. They can now get back to client facing tasks and add real value to their services. Now, it’s your firm’s turn; it’s not too late for you to join the accounting tech revolution.
The Outsourced Accountant supports Australian and New Zealand accounting firms by helping them understand and implement outsourcing solutions to help them become more proactive and truly add value to their clients. If you want to know more about outsourcing, call us at 1300 896 522 / 0800 452 853, and download our e-book.