Technology is changing the way people do business. In the last decade, business owners have shifted their operations to include more cloud accounting software to rely less on accountants and reallocate their budgets to allow these professionals to maintain a deeper role in a business’s operation.
There are 32.5 million small business owners in the US alone, and many rely on accounting technology in their day-to-day operations.
We’re going to explore how companies of all sizes are leveraging accounting technology changes to supercharge their businesses.
5 Ways Accounting Technology Empowers Business Owners
1. Cloud-Based Systems Supercharge Businesses
Cloud-based systems are available to supercharge businesses without the need for expensive hardware or servers. We’re seeing many businesses perform everything from bookkeeping to forecasting and more.
Additionally, these systems empower businesses in multiple ways, including:
- Real-time access to your information. You can also share this information with accounting professionals so that they always have the most recent data available.
- Streamlined processes, such as uploading receipts or sending out invoices to clients, all through a simple backend. You can also store data on the cloud, including large accounting files that anyone with permission can access.
- Automation of key tasks, such as syncing files across platforms, backing up documents and files, and other important accounting functions.
Furthermore, and this is something we’ll learn about more shortly, the software reduces the risk of errors. When your accounting and bookkeeping are well-managed, it’s easier to focus on your business’s other key tasks.
2. Accountants Can Focus on Ways to Improve Your Business
Accountants can work on more essential business tasks when integrating accounting technology into your business’s operations. For example, the software may be able to help you:
- Reduce accounting costs
- Work with your accountant services virtually
- Enable accountants to provide you with higher-level functions and services
Software streamlines costly and mundane processes. When you offset these tasks through advanced technology, accountants can spend more time analyzing the data available. The data allows these professionals to work on ways to:
- Improve your business next quarter or year
- Provide tax planning strategies and advice
- Help find ways to grow your business
Technology frees up resources that allow you to improve businesses in ways that are not possible or costlier without the right tech stack in place.
3. Client Transactions and Interactions are Smoother
The cloud is the most revolutionary advancement in how businesses do business. Software-as-a-Service and other solutions connect business owners with accountants across the globe.
Even businesses can easily connect their backends to create central databases with vital accounting information.
When you digitize data and operations, it’s possible to:
- Nix costly meetup times. Previously, accountants and business owners had to meet at specific times and locations to discuss your business’s operations. Businesses save time by reducing these costly meetup times.
- Businesses can connect with accounting teams faster and offer more efficient processes.
- Real-time, 24/7. Discussions can be had, statements can be accessed and information viewed by all parties at all times. Teams can look over financials and cash flow metrics, and even see which client transactions are still waiting to be processed or remain unpaid.
Accountants benefit significantly from these technologies, yet businesses also benefit from them. Business owners can connect with professionals faster, glance at a quick overview of their operations, and reach out to their accountants all from one central location.
Cloud technology helps businesses grow 26% faster, and a lot of this growth comes from your mobile-friendly business operations.
4. Mobile-friendly Business Operations
Mobile device dependence continues to rise, and 5.22 billion people use mobile devices. Businesses that want to connect to their clients can do so with the right mobile accounting technology.
You can use these systems to create mobile-friendly workflows that include:
- Creating and sending invoices to clients
- Capturing any receipts and placing them on the cloud
- Creating and storing expense claims
- Gathering client signatures
You can offer these mobile options to clients or connect to a CRM to store your client data logically.
If you’re going to meet a client in person or go to a trade show, you can handle everything from a tablet or smartphone. Add in new clients, view your cash flow, manage charges and even send invoices to clients with the tap of a button.
Today’s technology works to improve user experience and allow customers to receive and pay invoices quickly, pay for services, and more. From a business perspective, Internet-connected systems and backends are powerful solutions that also help reduce the risk of error.
5. Error Reduction With Specialized Software
Accounting errors can quickly lead to costly mistakes. Unfortunately, human error will always exist in some form. Specialized software has checks and balances that aim to reduce the risk of errors.
Paper and pen bookkeeping and accounting are rapidly moving to obsoletion.
When you integrate software solutions into your business’s operations, you do so with the knowledge that data inputs are rapid, automatic, and computed systematically. Errors that most accountants make are reduced due to accounting algorithms.
The right software will help you:
- Reduce the risk of costly errors
- Avoid potential tax penalties
- Stay free of potential audits
Furthermore, these systems are powerful solutions, which help empower businesses to make smart decisions. For example, when you can see your cash flow at a glance, you’ll know if you can invest in certain products or services and even learn more about clients that are negatively impacting your cash flow.
Accountants also avoid many tedious entry tasks and try to track down errors.
The key most important thing is to use the right technology for your business. Accounting is a field that is continually growing and evolving. Unfortunately, it can be difficult to discern which accounting software can best improve your business.
Accounting technology continues to advance, and when it’s set up properly, it can help streamline key tasks while also reducing expenditures. When choosing the right tech, it’s important to consider all of your options and consult with a professional to ensure it runs seamlessly with your backend.
If you need help getting an accounting system in place, LLP CPAs can help. Schedule a call with us today.