It’s undeniable that technological evolution will force all companies to change the way they do their accounting. Gone are the days of paper, pen, and calculator: the era of online accounting has arrived. If you haven’t yet transformed your financial organization, then it’s best to do so now.
In fact, a recent Thomson Reuters survey shows that ignoring technology is not an option. Of the nearly 800 financial industry professionals surveyed, 73% believe technology can be used for taxes, accounting, and audits.
With technologies like ChatGPT and generative Artificial Intelligence invading the financial world, how can your business keep up with this evolution? Well, the first step may be to opt for online accounting. After all, traditional management presents more challenges, especially for small businesses, which need to leverage their business with minimal resources. Online accounting thus emerges as an innovative solution.
What is online accounting?
Unlike traditional accounting, online accounting prioritizes digital format over paper format. The entire process relies on an internet connection and online accounting software , which can be accessed from any connected device.
With this software , data is stored in an organized manner in the cloud , making it always accessible. It also allows you to create downloadable reports and automate and simplify tasks such as invoicing and payroll processing.
Although it may seem similar to digital accounting , online accounting is primarily based on the dematerialization of processes. Digital accounting, on the other hand, involves changing processes and ways of working, reflecting a digital transformation of the business.
What are the benefits of online accounting?
Among the benefits of online accounting, the main one is undoubtedly ease of use. Most online accounting software is user-friendly and doesn’t require extensive accounting experience. But this is just one of many advantages.
Time and cost savings
Payroll processing, invoicing, and data uploads may all be completed more quickly with online accounting software. This facilitates cost savings by making the entire process more flexible and effective. Because it frees up labor for other duties, it also enhances productivity.
Easier access to data and better organization
One of the greatest advantages of using this type of software is its ease of access. This platform centralizes all information and accounting history, and is accessible remotely. Additionally, this data is organized automatically, allowing you to schedule alerts for certain tasks and obtain reports that help analyze business performance .
Data accuracy
The traditional method, in which processes are performed manually, opens the door to human error. However, this can be avoided with online accounting, as it performs calculations automatically and avoids sometimes costly errors. This method allows for greater care in information processing.
Security
Data is stored in the cloud , with security measures to protect it from unauthorized access.
In fact, the use of technology is increasingly important for accountants, especially to avoid errors. Gartner data shows that companies with high adoption of new technologies see a reduction of approximately 75% in their accounting errors.
Tips for keeping your online accounting organized
To get the most out of online accounting, you should follow some tips to avoid mistakes.
1. Monitor logs
While online accounting software makes organizing information easier, it’s crucial to ensure the data is accurate. This is particularly important when it comes to tax obligations. Automated accounting doesn’t mean a lack of attention. Therefore, be sure to consult a Certified Accountant (TOC) to ensure compliance.
2. Keep your software up to date
As with all technology, software needs to be updated regularly. This is not only essential to ensure compliance with new legal requirements, but also to ensure data security. Software issues can leave your customers’ and employees’ data exposed to potential cyberattacks.
3. Make regular backups of your data
Online archiving is essential, since conventional archiving was physical. You can lose access to your data on the online platform for any number of reasons due to unforeseen circumstances. But making a backup of your data somewhere else guarantees that you won’t lose any important information.
Don’t undervalue the difficulty of running your company’s finances, even if you go by these suggestions for making online accounting easier. Although online accounting software is easy to use, it does not replace expert counsel from a chartered accountant or certified accountant.