How Technology Is Transforming Accounting In The Modern Age

Wednesday, 19 Aug 2020

Accounting and bookkeeping have been completely revolutionised with the advent of information technology in our daily lives. Businesses in Melbourne have been in the process of harnessing this advancement in technology to reduce manual error and labour.

The accurate and secure data calculated through automated systems has enhanced the productivity and efficiency of industries. The use of smartphones has further boosted the use of technology and improved digital skills of workers.

Thus it has become imperative for every small and big organisation to adopt modern bookkeeping which saves time, energy and money. Also, bookkeepers in Melbourne are offering these services to make sure businesses stay relevant and up-to-date in the highly competitive market.

So here is a rundown on how technology is reshaping accounting in the digitally charged environment.

1. Cloud Computing

Cloud computing is the storage and retrieval of bookkeeping and accounting data from the internet. It provides automated solutions for the old and traditional methods of manual accounting.

The cloud-based accounting software allows remote working and real-time data access, which makes it possible to access financial reports at anytime and anywhere using mobile phones. The information gets updated instantly and helps the business owner in Melbourne to make informed decisions based on precise financial data.

The scalable software is able to adjust the growing transactions with the expansion of the business over the years and eliminates the need for paperwork. It improves collaboration, accessibility, sustainability and security of information.

2. Smartphone Connectivity

The ability of the new-age software to be used on multiple devices with a vast number of users makes them easier to use. Bookkeepers no longer have to stay glued to their workstations to make an update or send an invoice.

They can work while travelling or from their home in Melbourne using their Smartphone. They can access all the reports, tax-related information, work emails. The mobile phone apps perform all the functions, such as preparing invoices, adding receipts and conducting bank reconciliations, which are the basic bookkeeping requirements.

It helps in better management of financial information and its utilisation as the data is always on the fingertips of the users. From the accountant and bookkeeper to the management and business owner, everyone can perform efficiently as they are equipped with the latest data.

3. Business Advisory

Since automation has freed up the time spent on hours of calculations and organisation of data, bookkeepers have taken up the role of financial advisors in Melbourne.

They have a broader role to play in the organisations with their insightful deductions and inferences that help entrepreneurs to make decisions related to investments, business associations and new projects.

The bookkeepers are now involved in offering strategic advice and keeping things streamlined while monitoring every element of accounting.

They are in constant touch with the board members and the owners and help them to understand the importance of financial data. It aids in making vital business decisions, analysing data and defining future goals meticulously.

4. Safeguarding Classified Information

Since the accounting software is connected through the internet, it automatically records all transactions without missing out on the smallest payables and receivables. With paper bills, the risk of losing the physical bill is high.

However, with digitally saved data, no such challenges can affect your business in Melbourne. All the data is available on the cloud and can be retrieved at any time with the help of a device connected with the internet.

It improves transparency as the data is shared in real-time with stakeholders, and thus, aids in building strong ties with partners and associates.

The cloud protects all the classified information through its security features, such as authorised access controls, safe deletion, checking the integrity and encrypting secret documents. It maintains complete privacy with the benefit of back-up.       

5. Artificial Intelligence

The next technological revolution has already started with the advent of artificial intelligence. The bookkeeping work will become more mechanised once it becomes mainstream.

It has begun in the form of blockchain technology which involves the creation of digital ledgers that record transactions in sequential order and publicly in Melbourne. It is able to handle all complex transactions without human intervention and complies with all the accounting standards and state laws applicable in Melbourne.

Thus the role of bookkeepers will change to financial consultants who are adept at interpreting and analysing streams of data successfully. They will have to develop soft skills to match with the changing work environment and become a solutions provider rather than a number-crunching professional.         

6. Tax Software Solutions

The latest accounting software allows submission of GST returns, compliance with Single Touch Payroll system, and manages payroll taxes in Melbourne. Since the records are up-to-date and accurate, there is no scope of errors, and thus, no chance of incurring a penalty.

It helps in tax preparation, lodging returns online, submitting data to the ATO and populating returns. The software schedules business activity statements (BAS).

The tax forms are automatically updated for the new financial year, and you can even sign declarations electronically if you are not available in the town at the time of the submission.

Thus entrepreneurs can say goodbye to sleepless nights before the tax season and stop worrying about inaccurate reporting. You can meet all the deadlines and comply with all the tax regulations in Melbourne with the help of tax software. 

7. Marketing Through Digital Medium

Besides adopting all the latest innovations and customising them for their clients, bookkeeping companies are using the digital platform to connect with them. Social media marketing has become a critical tool for bookkeepers to engage with clients and businesses and market their service offerings online.

Social networking sites like Facebook, Twitter and LinkedIn have helped several small businesses find the right bookkeepers for their organisations at affordable prices. It has provided a medium to both the parties to come together and associate with each other. 

Conclusion

Bookkeeping in Melbourne is undergoing a massive change in the current times with new technologies taking the world by storm. From artificial intelligence to social media, every digital aspect is making an impact on the way accounting functions across organisations. Thus the role of bookkeepers has also evolved, and they are becoming more indispensable than ever.   

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