3 Ways Technology Has Transformed Accounting

The role of the modern accountant has changed little from when transactions were done manually with pen and ledger paper, but the software tools now at our disposal are rapidly transforming how, when, and where accounting gets done.

Here we summarize three key trends and features of accounting technology that are changing the game for both general accountants and their small business clients:

1. Cloud Computing

Cloud computing allows people to store, manage, and process data on a network of remote servers, rather than rely on a local server or personal computer. We love the cloud because it allows us to spend less time recording, classifying, and summarizing your transactions, and more time focusing on analyzing your data and reporting key information so you can make smarter, more timely decisions for day-to-day and long-term business goals. Cloud computing provides many benefits to optimize the accounting process, including:

  • Automation of record keeping of bills and invoices using Artificial Intelligence (AI) and Optical Character Recognition (OCR) technologies
  • Automation of bill approval processes and bill payment process
  • Real time transaction recording with bank account-integration that simplifies bank account and credit card reconciliation

Still got one foot in the ledger and the other in the cloud? Learn more about our Quickbooks Review service.

2. Modular Accounting Platform

Cloud accounting platforms like Quickbooks Online have quickly become ubiquitous thanks to the thousands of apps that allow flexibility in hand-picking the tools that serve the specific needs of the user at an extremely low cost. Why pay for an entire Enterprise Resource Planning (ERP) platform when you’re only going to be using a very small percentage of it?

How It Works: One of our clients is a small, but growing craft brewery. They rely on Square to manage retail sales in the tap room, Bill.com for paying bills, and SOS Inventory to manage their beer inventory. All three of these applications integrate directly into QuickBooks Online, creating an efficient and streamlined accounting flow.

If you’re someone who likes saving time and money (and really, who doesn’t?) then you’re best off combining the knowledge of an outsourced accountant with the efficiency of a modular accounting platform.

Need help hand-picking the best tools for your needs? Learn more about the benefits of our outsourced accounting services.

3. Timing and Frequency of Information

Technology like cloud computing allows accountants to live in the present more than ever before. (And, no, we don’t mean that they’re spending more time in their offices meditating!) Accountants no longer need to wait until the closing of the accounting period (or “month-end close”) to extract key information for the client.

With a cloud accounting platform we can see live transactions as they happen because the different systems are linked and communicating in real time. This allows us to communicate information to the client on a much more frequent and detailed basis, for example, the margin on a specific sale, or the actual costs of a project in the middle of the month.

Imagine what you could do with this kind of information…. Learn how our outsourced accounting services free up time for you to focus on growing your business.

Tristan CPA Boston is an outsourced accounting company run by experienced financial professionals. This means that you get the benefits of big firm expertise with the flexibility, focus and personalized results you need to grow your small business. Contact us today and put our expertise to work for you and your company.