Crucial Drivers Governing Decision Of Global Accountants To Go For Cloud Accounting
At present, global accountants have a fair know-how of Cloud accounting. Several accounting businesses are relying on Cloud accounting software due to the incredible features these software offer. Cloud based accounting software providers put in their best efforts to equip the software with the most in-demand features.
As software functionality keeps changing, it will definitely impact the manner in which accountants carry out their processes. Moreover, there is also a section of accountants who are unwilling to embrace the modern business models based on Cloud. While the accountants neglecting the change are on the losing end, those embracing it are not experienced enough and so tend to commit mistakes.
The Bigger Question – Why Accountants Make Such Mistakes?
According to a recent survey done on accountants willing to make a move to Cloud based accounting, such errors have a horrible impact on the overall accounting process – with impact varying from regression to outdated methods, several million-dollar blowouts and staff & partner attrition.
It has been detected that there are multiple recurring patterns in these failures. In this blog post, we will consider the five most critical mistakes global accountants commit while making a transition to cloud accounting. Additionally, we will also learn more about the ideas to avoid such mistakes.
Though attitudes of worldwide accountants may be slowly changing; however, the belief still is that the change needed is incremental. “Cloud software is simply hosted on a remote server” – this line can be heard from most accountants from the older generations.
However, 20 years ago, as desktop accounting software came into existence, the landscape changed dramatically. It should be hence right to say that the overall impact of online accounting would be just as great.
Still not convinced? Consider following drivers for change. These drivers are internal to accounting and meant for the broader accounting world.
Everything is Connected
No doubt Internet is connecting everything today – right from the point of sale to the general ledger, as well as the infrared beam counting how many people go in and out of a store. In the real world today, anything imaginable has the potential to become a source of data which can be not only tracked, but measured & analyzed to for improving business performance.
The Chartered Accountants Association in few countries is already keen to effectively redefine the future of the accounting profession in data analysis. Indeed the global accounting industry has a lot to gain from Cloud accounting in the coming time.
Mobile is the key
We are transitioning rapidly from an office environment where desktop PC used to be the primary interface for work. Transition from desktop based systems to mobile is being leveraged optimally by accounting businesses that do understand the importance of flexibility to work.
Despite all this, mobile is still only a secondary interface for few of the accounting tasks. Though industry experts believe that it won’t be true for long. With help of software automation, artificial intelligence and fully integrated voice recognition, it has become possible to carry out tasks that were performed earlier manually using a keyboard.
Clients’ staff can very easily snap images of receipts while business owners can effortlessly check their KPIs on the dashboard of their iPad. Now, the bigger question that arises here is that whether your accounting firm is promoting or simply ignoring this approach of doing business? Promoting this approach would definitely bring your business on the gaining end.
Government is digital
Worldwide Governments are focusing and accordingly investing on digitization in an endeavor to slash costs. In some countries, personal tax returns are calculated automatically, that leads to more precision and time saving. This trend is spreading to other parts of the world too due to the benefits it brings along. In New Zealand, tax returns are to be pre-filled with correct payroll data by the country’s tax department.
Clients Are Changing Rapidly
The Internet has effectively hooked younger generations when it comes to 24-hour access and gaining real-time results. The current business owners have different expectations in regard to customer service. Such businesses don’t see compliance as the end result. The current generation cares much about experience, ease, personalization and aligned values. This is something that needs to be analyzed fully before arriving at a final conclusion.
The Single Ledger
Practices prevalent in earlier days are of no use now. Now, accountants don’t have to import data from their existing client’s accounting file directly to their practice management suite.
As per the current scenario, accountants and business owner have the freedom to work on one file that serves as the single & most reliable source of representation of what’s exactly happening inside the business.
It not only cuts down the back & forth, but transforms accounting right from historical reporting to effectively taking a live pulse. In short, there’s a lot going on. Probably, it’s this chaos that’s causing accountants to be unsure of how to respond.
Surely, with Cloud accounting becoming a norm, more & more accounting businesses will be dependent on Cloud to simplify their business processes and enhance productivity. With everything connected to the Internet, accessing files would be as easier as working on the data that lies within.
Overall, accountants will have a fabulous time when it comes to finishing bookkeeping tasks quickly and more efficiently by leveraging Cloud accounting to the core.
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