The Small Business Times

5 Ways Modern Technologies Can Improve Your Bookkeeping

Technology has changed how professionals conduct business and has become an essential component of the accounting and bookkeeping industry. It’s no longer good enough for accountants to have new tech but they need to understand its full potential to stay ahead in the market.

Depending on the size of your business, the incurred income and expenses have variable sources that determine the amount of complexity for the bookkeeper. Technology plays a big role in reducing these complexities and simplifying the various tasks to enhance the bookkeeping performance.  

Below are a few ways modern technology can help improve your bookkeeping.

Cloud Computing

Cloud computing is one of the most important elements of the transition to modern technology for the accounting and bookkeeping industry. It enables financial information and documentation to be uploaded, processed, stored and maintained on remote computer servers. Bookkeeping activities, for example, can easily be performed, managed, and monitored online without having to leave the office.

Online bookkeeping simplifies the process, exchanges information in real-time, and keeps data safe and secure. Cloud computing is a wise investment that will take you out of the dark ages and into the future. Other activities performed through cloud computing include invoicing, collection of bills and taxes, payroll services, budget forecasting, and many more.

Mobile Accounting

Accountants have become increasingly dependent on their mobile devices to access any data. Mobile connectivity also helps improve communication between accountants and their clients. Thanks to the advances in online solutions, the accounting function can be reviewed, managed, and maintained from anywhere in the world. Executives can perform their finance tasks through various devices including laptops, smartphones, or tablets while traveling and on their own time.

They no longer need to schedule a meeting with their accountant, visit their offices, or take part in a meeting to discuss the financial situation of the business. For example, if you’re an executive, based in the company’s headquarters, and responsible for various branches around the world, you’re unlikely to have the time to sit down with your accountants in each country. By transitioning to mobile accounting as well as cloud technology, this is no longer an issue.

The Ecosystem Of Online Solutions

In addition to cloud computing solutions, there’s a growing ecosystem of online solutions that can help optimize the overall accounting and finance process. Tech solutions are quickly becoming efficient for businesses operating across every industry and with any business model. Many online accounting solutions have become helpful for performing accounting and bookkeeping tasks such as managing ledgers, booking receipts, bank reconciliations, generating a report, etc.

The growing ecosystem of online solutions can help make the entire finance process much more efficient, especially when they’re fully integrated, usually through an API. Some of the efficient online solutions for businesses operating across every industry include POS (Point of Sales System), loan management systems, inventory and logistics management, expense management, payroll, and CRM (Client Relationship Management).

AI and Machine Learning

AI (Artificial Intelligence) and machine learning can be quite helpful to accountants, making their job more effective and efficient. Artificial Intelligence can be a game-changer for companies if they simply harness the power of AI. In accounting, AI can conduct repetitive, basic tasks that can otherwise dominate an accountant’s schedule. For example, payroll, auditing, uploading files and sorting through large swaths of data.

When AI covers these tasks, accountants can focus on the job’s more human-directed tasks like analyzing and interpreting data once it has been gathered. This will help build more effective and efficient recommendations for corporate stability and growth. Keep in mind that even the smallest mistake can cause the biggest problems in accounting. That’s why using machine learning tools can substantially reduce the likelihood of time-consuming issues.

Virtual Meetings With Clients

In the business world, offshore bookkeeping is a common practice. Face-to-face meetings are often expensive and time-consuming, and phone calls can’t really address the communication needs. However, virtual meetings are the perfect solution for this. Video and voice conferences on the same platform with the option to share instant messages and files empower the bookkeepers.

These virtual interactions are affordable, and time-consuming, while still conveying all the requirements. By saving money and time, bookkeepers can serve more clients. Additionally, scheduling tasks and tracking performances using software has been helping all kinds of businesses, including bookkeeping firms.

In Closing

Keep in mind that outsourcing your bookkeeping to an online bookkeeping service can ensure that your books are accurate and help you save time. Some even offer add-on services like tax filing and payrolls. So, whether you’re looking for a basic online bookkeeping service or a full-service virtual accounting firm, you can always find a provider that will best fit your needs.