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Financial Accounting Basics In The Digital World

Digital technology has completely revolutionised the way we communicate, purchase products and do our work. The accounting and finance world are not immune to this change and forward-thinking accounting companies are adopting the latest digital technology and solutions to streamline their businesses and offer their customers more.

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In order to understand how digital technology is fundamentally shifting the accounting and finance industry, you need to understand what the digital world can offer accounting and finance – from performing financial accounting basics like tax and payroll, to attracting new clients. Here are some of the key digital advantages:

Greater efficiency with streamlined processes

Digital cloud technology allows businesses to easily manage, store and access all their accounts, data, and records from one place, in real-time. Cloud technology has completely revolutionised the way the accounting and financial industries conduct financial accounting basics and it’s growing in popularity. According to Accenture Research, 85% of CFOs say they plan to increase their investment in the cloud in the next two years, and over a third expect the investment to increase by over 25% during that time.

Most businesses, including small to medium enterprises are already accessing cloud computing. The immediate benefits financial and accounting companies are experiencing, include increased flexibility with data accessed from the cloud onto any device, seamless transfer of information, and greater integration amongst systems.

Greater team collaboration

For any accounting firm, no matter what its size, team collaboration is a key component to success. Those firms with collaborative digital tools are more efficient and productive, as teams and stakeholders share information seamlessly from the cloud and central databases in order to work together more effectively.

Massive savings in time

Digital accounting platforms offer real-time transparency, enabling accountants to see companies’ financial positions anytime, anywhere. Instant reports on stock evaluations, profit and loss, payroll and sales analysis can be generated at a touch of a button, allowing for faster financial adjustments.

Digital accounting software also enables faster data entry than manual accounting, which ensures invoices and purchase orders can be collated and printed quickly and efficiently. This in turn leads to improvements in inventory control and payment collection, helping to save time and improve cash flow.

Up-to-the-minute advice for clients

Cloud-based solutions mean accountants are able to access real-time, personalised data in an instant. Using real-time digital data you can speed up financial accounting basics, compare quarterly, monthly or even weekly changes and offer your clients the most effective advice and actions.

Improved client relationships

Accountants are moving away from communicating with clients via email, which is often inefficient and increasingly ignored in customers’ overflowing inboxes. Instead, accountants are adopting a closer collaborative relationship with their clients using digital instant chat platforms like Slack, HipChat, and Skype for Business messaging.  In fact, Slack users spend over 100 million hours on it monthly to conduct business. These chat platforms speed up communication and enable more real-time interaction, improving basic work processes and the flow of information and advice between accountants and their clients.

Attracting clients and growing your business

The days are gone when accountants based their business on referrals or their LinkedIn account. According to Statista, there are 2.3 billion active social media users and as of 2016, 78% of the United States population has a social networking profile. So it’s not surprising that more and more accountants are adopting digital social media strategies to reach more clients. Stay top-of-mind and keep your customers engaged with relevant and interesting financial articles. Consistent posts by your social media team will also help build credibility and trust as prospective clients view your page.

Another aspect of the digital social world is social listening. Social listening gives accounting and finance companies the opportunity to follow and observe clients who are in need of financial assistance. An accounting today article highlighted the importance of “listening” to what clients are tweeting and posting on Facebook and then making informed connections with them.

While this dizzying pace of digital change can be disconcerting for many in the accounting industry, it’s important to think about how the key benefits of this technology can impact your business and its future direction.

Companies like Easier Accounting are already bringing the benefits of online accounting to financial professionals and business owners by offering them huge cost and timesaving advantages with their financial accounting basics.

For more information about the top trends affecting the business and finance world in 2017, download our guide by clicking the banner below:

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