Digital Accounting: How it can make chartered accountants future-ready
Today, Chartered Accountants play a significant role in building and recuperating our nation's economy. They ensure fair trade and business practices, help businesses stay afloat, and use their financial expertise to steer the nation in the right direction when it comes to various economy and finance-related measures. Therefore, they are instrumental in enhancing the economy.
The responsibilities of Chartered Accountants include budget forecasting, company audits, preparing monthly financial reports, capital budgeting, tax planning etc. Further, their role has enhanced and become more important after GST implementation. So, the role of a CA is much more than merely calculating the debit and credit of a company. Many tools and features of digital accounting are being adopted widely to empower chartered accountants to carry out their tasks effortlessly, accurately, and in minimum time.
The age of digital solutions
Digitisation is akin to globalisation; it's everywhere! The technological disruption is not only at the core of its operational areas like value-added supply chain, but also in the central functions such as — finance, accounting, human resources, and purchasing. Likewise, it is also making significant changes to make accounting systems and processes swift.
Further, digital accounting is assisting CAs in numerous ways, such as complete GST overview, bulk creation of vouchers, bulk replication of vouchers, amount-wise sorting of vouchers, voucher auditing, finding minimum/maximum cash balance in a year, and much more. These are supported by various digital solutions — paperless accounting, management of data quality, real-time reporting, and ensuring transparency, bid data analysis, uniformity of systems, process automation, cloud computing etc.
Digital accounting means storage, formation, transmission and representation of accounting data in an electronic format. Technological advancements in accounting have enhanced the chartered accountant's ability to analyse, interpret, make predictions, and report data faster, more effectively and more efficiently than ever before. With better connectivity, real-time data, and numerous options for automation, online accounting software is a great buy for chartered accountants. This is incredibly important for fast-paced business operations, where capturing data manually is not a viable option and where optimising your resources is vital.
Advantages of digital technology for chartered accountants
Here’s how today’s accountants are going digital:
Planning and budgeting
Enterprise planning, operational strategy and budgeting are crucial for optimising any business. With the e-invoicing and automated payment features of digital financial software, the financial professionals can manage these business planning and budgeting processes more efficiently. This saves their time, which can be utilised to explore more effective strategies for businesses, new techniques of financial planning and budgeting etc. Further, analysing large volumes of data accurately, precisely and quickly is one of the foremost challenges for chartered accountants. A manual analysis takes a lot of time, which often causes delays in key decision-making. However, technology is helping auditors precisely analyse vast amounts of data at a much faster rate and accurately.
Developing financial reports and providing accurate financial forecasts are key responsibilities of any chartered accountant. However, gathering data to file reports has always been tedious and time-consuming. Cloud-based accounting software can help an accountant quickly gather the relevant sales data and documents they require – income statements, balance sheets, statement of owner’s equity, etc, and efficiently create detailed analytical reports as well as map out the ways for your business to grow, considering the ongoing market conditions.
Easy and quick analysis of historical financial data
Business expansion, investment planning, and IPO generation are some of the key issues for which businesses need frequent expert advice. A company's financial department or accountant is the best person to advise them on making important financial decisions. Cloud-based accounting software can help the accountants easily access and analyse historical financial data to make key business decisions in less time.
Data validation, if done manually, is a time-consuming task, but digital accounting can help it do accurately and efficiently in very less time. The accountants can also run internal validation procedures to make sure the entire accounting process remains error-free.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)