Accounting: A Digital Transformation

It’s 2020 and the accounting industry is experiencing a digital transformation, one which is changing the way we function. The shift from traditional accounting to implement technology has changed the way accountants’ function on a day-to-day basis in the industry. The shift has now moved to include advisory and consultancy services. Technology has helped in automating accounting procedures to an extent where accountants can now spend more time focussing on what is and isn’t working for their clients, and provide them with valuable changes to do so.

The increase in the roles and responsibilities of a modern-day accountant requires key skills, like critical thinking, analysis and decision making. Traditionally basic accounting training consisted of auditing and tax preparation.  Technology coupled with data analysis has bought about the ability for accountants to now perform forecasting analysis to help guide business owners to make better decisions.

We’re outlining some of the major technological advancements that have been made through the introduction of new digital tools and applications, over the years which have changed the way the accounting industry functions. Some of these are tools that we use at JZR to ensure more efficiency and higher productivity levels. This lets us complete our core accounting tasks, and let us provide our clients with valuable insights and recommendations.

1. Cloud Based Accounting: Cloud accounting is the use of the internet to permanently store data and use of business applications through a remote server. At JZR we achieve this by using Xero as an accounting software tool. It’s easy to use, and lets you access data remotely, and at any time. Data is permanently stored in huge data centres, versus the traditional system of using paper, and filing. Cloud based accounting is also extremely economical and convenient, since our clients can also access the same data to stay updated, and you only pay for what you use. Xero accounting services also lets you transform data seamlessly across its different platforms, like Xero Practice Manager for example which stores every client’s data separately can be exported to Xero’s Accounting software with just the click of a button. The software lets you invoice a particular client, therefore cutting drown preparation time massively.

2. Payroll Technology: Payroll technology is another sector of accounting which has changed immensely over the last decade. Innovative tools like ‘SmartPayroll’ help in massively cutting down you would spend over manually entering and registering the data. Software’s like Smart Payroll is designed to work out payroll calculations and tax deductions automatically, saving time in payroll processing and to automatically generate payslips. It also files the payroll returns mandated by the IRD electronically so that you never miss a deadline.

3. File Sharing: File sharing tools like ‘Dropbox’ and ‘Google Drive’ make sharing information and documentation easy and accessible. Common work folders can be shared by team-mates and colleagues to make sure communication lines are maintained. It also makes the possibility of working remotely much more convenient since most of the data and client files are already backed up to cloud-based platform on the internet.

4. Video Communication: Video communication has also enabled accountants and their clients to converse from the convenience of their own work spaces, thus making accountants more accessible to their clients and vice versa. Tools like ‘Skype’ and ‘Zoom’ enable options like screen sharing which enables users to share their desktop screens in real time, which could be really useful while analysing statistical data or for the purpose of making presentations. It also saves time by cutting down on the hassle of travel, and thus ensures accountants get more time to be productive.

5. Other Software Tools & Applications: There are a bunch of other software applications which further contribute to simplifying the role and job of an accountant today. ‘Docusign’ is another good example of a tool that enables it users to send, sign and approve documents from anywhere and at any time. It helps significantly in reducing the amount of paperwork and clutter. Another great tool for accountants is ‘HubSpot’. ‘HubSpot’ gives accountants and its users a chance to manage marketing campaigns from a simple dashboard that is designed to be simple to use and efficient. Tools like HubSpot now allow accountants the ability to market their businesses to prospective clients by showcasing their skillset and business propositions.

All in all, the industry has evolved substantially over the last decade. The industry has a strong growth potential for the future, and tremendous opportunities.

To know more about how we can use the right tools to help your business grow, get in touch with by mailing us at info@jzr.co.nz or call us at +66-9-972-2236.