Posted 31 May 2022 , 04:54

Benefits of Digitalization of Accounting

Digitalization of Accounting

The Need!

New generation entrepreneurs are impatient techies, who want everything faster, efficient, reliable, and at their fingertips. Therefore, when it comes to serving such clients one must always search for ways to serve them better as well as undergo changes wherever and whenever required. Digitalization is one such way to do so.

What benefits does digitalization have to offer in accounting?

Following are some of the ways that accounting firms or accountants can benefit from embracing digital technologies:

1. Easily find accounting and bookkeeping opportunities

  • Accountants can use service platforms like Upwork, freelancer, LinkedIn, etc. to find opportunities and approach potential clients.
  • Giving such service platforms the benefit of the doubt – always ends up having potential and trustworthy long-term international clients.

2. Improved process

From the way of communicating to the way of delivering results – ‘a predefined process’ plays a significant role in accounting. There are two areas:

  • External process: With digitalization, accountants can use various modes of communication like Zoom call, Slack and be available anytime and anywhere; collect required documents from the clients and deliver the reports by using document storage tools like Dropbox, Google Drive.
  • Internal process: With digitalization, accountants can use various accounting software like QuickBooks, Xero, MYOB, Excel and deliver the required reports to the clients. These accounting software have made the lives of accountants easy by integrating complex algorithms to fetch and bifurcate cash flows in various forms so that the desired results can be achieved quickly. Altogether, the accountants are majorly left with verifying the entries of various cash flows and balancing the book of accounts.

3. Easier Staff Management and Efficient Delegation

  • Managing staff, their attendance, assignment of work, tracking their efficiency and productivity is cumbersome when going the traditional way. All this can be easily manageable using various project management and document management tools like Asana, Trello, Excel etc.
  • A job is half done when work is delegated efficiently. If there is no project management tool then most of the time is invested in deciding who will do what, in turn, leading to long discussions. With the usage of project management tools, staff members are aware of their daily pending, ongoing and completed tasks while the manager is also aware of the pile of work they need to manage.

4. Speedy bookkeeping and financial forecasting

  • Clients can just upload all their invoices of cash flows in a shared folder and accountants can easily do the timely bookkeeping of the same. This leads to speedy bookkeeping.
  • As a result, the P&L and balance sheet can be done accurately and efficiently. The reports can be generated easily and financial forecasting can be made for the next set of months

5. Proof of work

  • While thinking of the manual ways, the client is not aware of the whereabouts of their financial statements as well as how much is pending to reconcile.
  • With the usage of accounting software like Quickbooks, Xero, etc. clients can easily know whether their book of accounts are up to date or not by just going through their accounting software. This in turn leads to timely payment from the client and builds trust resulting in a long-term relationship.

With digitization the primary principles of accounting do not change; although, a business can leverage the digital technologies to tap into the potential that the new technologies have to offer. We, at Nimblefincorp, have been helping many businesses convert their traditional workflow to a digital one. We believe in providing efficient ways to manage the cash flows and book of accounts to all our clients.

Would you want to know how Nimblefincrop can help you digitize your current workflow? Leave us a quote or you can drop a message at sales@nimblefincorp.com, and our team will get back to you.

About the Author.

Felcita is an expert in providing the best strategies for any business ideas. She strives to improve organizational efficiency leading to increase in sales and revenue by her work.

She works as a Business Consultant at Nimblefincorp – a reliable Indian accounting partner to many businesses across US, Australia, India, Canada, UK and many others.