In this write-up, I will be continuing on the digital impact of accounting and discuss the different technologies that are at the forefront of accounting.
If you have not read my first post about Digital Impact of Accounting you can read it here “
In this article, the focus will be to look at the following tools:
1. Cloud Accounting
2. RPA
Cloud Accounting
In simple terms, an accounting system that is accessible through the Cloud and is accessible 24/7. This has been a growing platform in the last decade or two. It enables the small and medium-sized companies to get the best of talents to work on their behalf regardless of any geographical limitations.
Not only does the cloud platform offers access to the accountants, but it also provides the decision-makers with real-time reporting which facilitates effective tactical changes as and when required, and not be limited to the typical month-end reporting and losing opportunities.
The benefits cloud accounting brings extend much more than just 24/7 access and real-time reporting but to the whole Cloud ecosystem that is competitively and constantly growing with developers across the world developing apps/tools that can be easily integrated and facilitate seamless transfer of information. This ecosystem creates an equivalent ERP for the small and medium companies at a comparatively cheaper cost with high customization which helps the user not just with financial data but also with the operational data.
Robotic Process Automation
Yes, ROBOTS! But the benefit here is that the modern RPA tools are user-friendly and do not require the user to have extensive knowledge of programming languages nor be the developer. Any person who knows the breakdown of a task at each decision node would be able to work on the RPA tools with efficiency.
The top 4 use cases for RPA currently are:
- Accounts receivable
- Cost allocation
- Accounts Payable
- Reconciliation of reports
A common understatement that you notice is the belief that RPA is such a big step and it is only for enterprise-level businesses. This mentality needs to be taken off and an open mind is the first crucial step. Many RPA tools help any company to reduce redundant tasks and bring in efficiency and higher quality.
In the next part of the article, I will try to cover the remaining technologies that are making an impact in the world of digital accounting
