Accounting Just Got Exciting (We couldn’t believe it either!)

role of technology in accounting
Image by rawpixel from Pixabay

You read that right. Accounting can be exciting.

It may not be passing-the-CPALE kind of exciting, but it IS still exciting.

How is that possible?

Technology.

Technology and accounting are two inseparable concepts in bookkeeping. But technology back then was not enough to amuse us in any way.

But not anymore. Technology has evolved so much in the past five years that keeping it out of your accounting practice means a big loss (and bore) to your career.

In fact, if you want to progress in your career, you have to think beyond the confines of the traditional ledger and bean counter and be an IT-savvy partner who keeps both your superiors and your colleagues always updated on their numbers. 

You do this by accessing several databases, doing lightning-speed calculations, and coming up with graphs, maps, and charts that explain your numbers. 

But how do you do all these?

Simple.

You do these using the accounting software tech that has completely revolutionized your industry and changed the rules of your profession.

So how exactly is the role of technology in accounting helping?

You can come up with the numbers fast.

Speed is of the essence in today ’s fast-moving world where technology is disrupting how people buy and sell, and how companies do business.

According to Sheila Shanker of Chron (2017), accounting and bookkeeping tech can calculate and come up with the results at a much faster rate than if you were still writing down those numbers on a ledger and using a calculator to make sure they all add up.

Excel Spreadsheets, for example, easily do away with repetitive rudimentary arithmetic exercises by automatically adding, subtracting, multiplying, and/or dividing all those figures into several columns.

What you can manually do in a minute, the Excel can finish in a second. All you need to do is learn and input the correct formula.

You can quickly organize accounting and bookkeeping documents.

Our favorite role of technology in accounting is that it keeps all your records in one or several of your own devices, as well as having a copy on the main server.

If you need to check the figures that will compare the latest sales performance of the company sales teams with the expenses that they are spending on the field, it would take you just a few minutes to click on those documents on the appropriate virtual folder.

Comparison and note-taking would also be faster and more efficient just by clicking on several windows on your laptop. Now, compare that with the age-old practice of physically removing actual bulky piles of documents and paper notebooks from filing cabinets.

Then you would have to lay them out on a table, sift through the pages to find what you’re looking for, mark each with some kind of post-it note, and then open each one.

You can significantly reduce the margin of error.

Accounting and bookkeeping technology significantly reduces the margin of error in your work. This doesn’t mean, though, that it’s perfect, so you still have to check the calculations that your smart machines performed.

However, according to Dallas Miles of the Roger CPA Review Blog, the mistakes that the technology might make would be far lesser than what your diligent manual computation can commit.

The reduction of errors can and will save your company a lot of headache, such as paying penalties because of tax errors or facing an angry client because of a wrong billing or mistake-riddled financial report.

As Andrew Marder in Accounting Web elaborates, one mistake that can trigger an entire avalanche of errors has to do with manual handwriting. A faint coat of ink or an accidental curvature of a digit can change an 8 to a 3. One flaw in one document can infect the rest.

Accounting and bookkeeping technology eliminates that kind of an error by capturing all data on images and churning out the right numbers on the spreadsheet.

You can comply with organization and government mandates. 

All organizations have their own financial metrics and code of conduct that they have to comply with. At the same time, they must also follow government regulations on issues such as taxes, the different policies governing a range of industries, and legalities.

According to Agnes Ann Pepe of the CPA Security Advisor, accounting and bookkeeping technology can automatically wire all these dozens of rules and compliance guidelines in your computation and then advise you while you are executing the formula.

It takes away your need to double-check and review the guidelines while you are in the middle of doing the calculations. Not only does your work become more efficient, but the chances of your missing an important legal policy or compliance issue are also reduced.

The exciting role of technology in accounting

As an accounting and bookkeeping professional, you do have to get the hang of the role of technology in accounting. Master the latest technology in your profession because, as previously mentioned, technology and accounting are inseparable. You enhance organization and efficiency in your work and come up with accurate reports that your superior needs. The rapidity with which you come up with the reports can make a difference in the decisions that management makes.

And that’s what makes it exciting.