Keith DeMatteis is an accounting executive and guest contributor. In the following article, DeMatteis delves into the growing role of technology in accounting practice.
Most aspects of modern life are rooted in technology and its advancements. From electric vehicles to washing machines to toothbrushes, tech improvements are constantly rolling out in production.
Business operations, and in particular, accounting, have benefitted greatly from tech iterations designed to streamline processes and reduce tedious tasks via software development and even AI, as we see below.
The Relationship Between Technology and Accounting
Accounting has undergone many amendments over the years. But one factor remains clear; technology is a critical part. It has shaped the industry, allowing accountants to make efficient, accurate documents on various statistical values explains Keith DeMatteis.
On top of that, tech in all its forms has enabled accountants to better interpret business language, making them valuable advisors.
Technology and the Accounting Process
Historically, accounting was conducted by hand. However, Keith DeMatteis says that technology has made fast, real-time collection and compilation of information from a variety of sources possible. Not to mention the automation of mundane, repetitive tasks.
Therefore, accountants are given the opportunity to focus on performance monitoring and providing financial advice to their clients, ensuring companies minimize errors and make well-informed monetary decisions.
Keith DeMatteis of Nassau County says that perhaps the most important technological impact on accounting is accuracy. Rectifying mistakes is now easier than ever before, and the number of errors has reduced significantly, thanks to the automatic recording process that minimizes human error.
Whether it’s controlling financial policy, preparing budgets, handling costs, evaluating performance, or preventing deceit and mistakes, technology has revolutionized all aspects of the accounting process.
Top 6 Reasons Why Tech is Crucial in Accounting
With the rapid advancements in the technological field, accounting (that is, the language of business) must keep up with the fast-moving pace to ensure they can respond effectively to market conditions and match clients’ requirements.
Online tools and digital resources have already enhanced productivity — manual accounting is non-existent these days — and experts say this will only continue.
Keith DeMatteis of Nassau County explains that accountants must regularly update themselves on relevant technological advances to stay ahead of the curve and meet compliance guidelines. Other reasons include:
#1 Document Digitization
Creating and maintaining paper records is a thing of the past. The process is practically archaic and unnecessarily costly. Plus, the environmental impacts and space requirements aren’t justified.
While the process of converting paper-based documents into digital storage can be slow, it’s essential for accounting firms. Document digitization is the present and the future, making it easy for anybody with proper authorization to gain access to secure documents from the cloud.
#2 Calendars and Task Management
Calendar management apps allow accountants to set alerts to avoid fines and meet deadlines. Such applications aren’t brand-new, but it has taken a while for various industries, including accountancy, to harness their true power.
Keith DeMatteis of Nassau County explains that document or schedule changes are seamlessly shared between all professionals at the firm, allowing accountants to provide the best possible service to their clients.
#3 Bureaucracy Elimination
Online accounting systems are intuitive, easy to use, and offer firms accessible channels to interact with clients and colleagues. Thus, banishing bureaucracy layers and saving time.
Depending on the platform used, it may come with a selection of management tools to reach goals and finish tasks on the go. It goes hand-in-hand with the post-COVID climate of hybrid or at-home working.
#4 Training
As technology continues to advance, accountants must perform regular training to retain momentum and competency within the fast-paced market.
Much like everything else, such training is digitized, ensuring it’s easy for professionals to maximize the gains the ever-evolving technology brings.
#5 Customer Connections
Through messaging platforms and digital tools, communicating with clients is easier than ever before, bringing customers closer to their accounting professionals, saving time, and increasing efficiency.
#6 Specific Tax Tools
Today’s tax software has reduced error margins and improved accuracy, ensuring businesses avoid tax penalties that can cause stakeholder and financial concerns.
Accountants who keep up with the ever-improving tax software benefit from streamlined audits, seamless invoicing, and more. Council members of the HKICPA, say that understanding new accounting software is essential to effectively audit and discharge responsibilities.
