New technologies in accounting that you should know about!
The functioning of accounting offices gives micro and small entrepreneurs access to professional services at an affordable price. In turn, owners of accounting offices increasingly focus on new technologies, thanks to which they can present themselves to clients as companies that follow current trends and offer additional services. How is the work of an accountant changing thanks to new technologies? We check which new accounting technologies improve everyday work!
Are new accounting technologies needed?
New technologies are increasingly important in accounting services. Already today, many accounting offices use programs supporting the daily tasks of an accountant. It is also related to the progressive digitization of settlement documents carried out by the Ministry of Finance. Suffice it to mention the Standard Control File sent electronically or the National System of e-Invoices (a system for receiving structured invoices), which is to start operating from January 2022 and is ultimately to be mandatory. As a result, new technologies mean that the work of an accountant is also changing.
Accountants employed in accounting offices have more and more time for substantive work and improving the quality of customer service. Using dedicated software, they do not waste time adding up columns, checking the correctness of NIP numbers or manually rewriting data from invoices. Accountants more and more often control the correctness of settlements, focus on ongoing monitoring of the situation in the company or help their clients adapt to new economic conditions.
According to the report “Ready for change. Tax technologies in companies operating in Poland ”prepared by KPMG, new technologies can comprehensively help in the work of the tax department. The respondents indicated that technological solutions dedicated to the accounting industry allow for:
Improving the reporting process - 91 percent
Reduce the number of human errors - 87%
Reducing employee involvement in repetitive activities - 79%
Reduction of the general operating costs of the department - 64 percent
According to the consulting company Ernst & Young, automation allows you to free up to 50 percent. human resources in the organization. At the same time, the team in the current composition can perform the tasks entrusted to it more efficiently and better. For clients of accounting offices, this means faster access to information, not only about the amount of taxes, but also data on the basis of which further business decisions can be made.
New technologies in accounting - robotization, blockchain and cloud computing
What trends are noticeable in the accounting industry when it comes to new technologies? There are three areas where changes are visible. The work of accounting offices and their staff members is influenced by robotization, blockchain and cloud computing.
Robotization in the accounting office
The main advantages of robots - or more precisely, algorithms - include simultaneous accuracy and efficiency that could not be achieved by an employee. Thanks to their use, it is possible, among others:
Automation of the most repetitive tasks, e.g. data transfer and verification or generating reports. It only takes a moment to generate a report using different variables - all you need to do is define the data types.
Capture incorrect transactions or flows or those that may be risky from a tax point of view. This, in turn, allows for a quick reaction and taking remedial action.
Robotization in the accounting office does not only cover the tax department - such solutions are also used by departments dealing with HR and payroll services. Algorithms are used, among others to generate HR reports or employee certificates. Employees can often apply for the latter online.
Blockchain in an accounting office
A newer trend in accounting offices is the use of blockchain. Currently, however, this applies only to the largest companies specializing in tax services, which have been investing in this technology for a long time. Where does the interest in blockchain come from?
The advantage of blockchain, which is used both for storing and transmitting information about transactions, is security. The distributed register is constructed in such a way that it prevents interference with the transmitted data - their modification or deletion of selected elements is impossible. From the industry point of view, resistance to data manipulation is crucial.
Although currently blockchain technology is not fully used in the accounting industry, its potential is hard to miss. Its use allows you to secure data and send it safely in electronic form. This can be the next step in eliminating paper documents from circulation in accounting offices.
Cloud computing in an accounting office
Many accounting offices already use cloud computing, i.e. cloud solutions. What is it about? Both the accounting office employees taking care of a given client and the client himself (or the employees indicated by him) have access to the accounting software via a web browser. All you need is a login and password to perform accounting operations or check the amount of taxes payable.
Cloud computing allows the accounting office to be perceived as innovative. On the other hand, this solution has a number of advantages, including:
Access to data at any time. You only need a device that is connected to the Internet.
Security of stored data. Providers of these solutions offer security that banks also use.
The advantage of cloud computing is also efficient access to data. For example, it is not necessary to send an e-mail to every customer with information about the tax amount. Software vendors also ensure that it complies with the current legal status.
What are the main advantages and obstacles in implementing new technologies?
Digital transformation in accounting offices does not always go smoothly, despite the fact that new technologies in accounting have many advantages. It is not only about improving work, but also about increasing competitiveness. As a rule, micro and small companies have limited financial possibilities, so they have to build their advantage on the market by using other areas. The ability to receive additional information from the accounting office to help you make business decisions can be one of the factors considered when choosing a partner.
What are the most common obstacles when implementing new technologies in an accounting office? A list of such barriers was included in the report "Robot in the accounting service. The robots will not take the job of an accountant, but they will change it ”Ernst & Young company. Respondents participating in the survey indicated as obstacles in the implementation of new technologies:
No budget - 38 percent
Lack of information about existing solutions - 34 percent
The need to change the accounting process - 24 percent
Corporate restrictions - 23 percent
Lack of appropriate solutions - 22 percent
The reluctance of employees and their perception of new technologies in the category of competition that will take them away from their jobs was ranked second (16%). Changes in accounting offices require a modification of the current approach to the tasks of the accountant. The role of business owners is to properly present algorithms - to indicate that their implementation is not the first step to liquidate a workplace, but to automate the most tedious activities.
Although the digital transformation in accounting offices is a long-term process and requires being open to change, in the long run it saves time, resources and the ability to serve more customers without compromising the quality of services. All this proves that it is worth focusing on modern software created with this industry in mind.