Digital Accounting A wave to transform the way businesses manage their finances
According to research report, just over half (59%) of small businesses don’t think they’ll need an
accountant in 10 years’ time and 56% believe they’ll use accountants for help with tasks outside of
accountancy in the future. What’s more, less than half (42%) of small businesses expect to talk face to
face with their accountant in the future.
So, with a massive change underway, how can you approach your practice’s successful transition to
Digital accounting can be defined as the accountancy specific to the current digital economy. The term
digital refers to digits or numbers and e-accounting prefix “e” refers to electronic. Digital accounting refers
to the representation of accounting information in the digital format, which then can be electronically
manipulated and transmitted. Digital accounting does not have a standard definition but merely refers to
the changes in accounting due to computing and networking technologies.
Answer to a question how should one can approach successful transition to digital accounting – there are
some standard pointer to be consider like make time for a strategy, define vision, take stock of service
offering, choose the right technology and communicate, bring the right people together, get team trained
up, segment your clients, educate your clients etc
Digital accounting benefits organization in several aspects like real-time information, forecasting and
planning, bookkeeping, security, accessibility, review, more frequent meetings. It is not that only big
organizations need digital accounting even small businesses also benefits as less time drainages, reduce
the expenditure and labor of manual operations, remarkable speed and accuracy, made easy to locate
and manage, transactional data and specifications are searchable, reduce chance of human error.
Digital accounting is already come a long way from manual bookkeeping to automation and cloud
accounting. Most people are also outsourcing their accounting needs in order to completely focus on the
task and generating new business. There are several trends in this area like cloud accounting,
automation, social media strategy, collaborative accounting, outsourcing, adaptive security etc
The role accounting is changing rapidly, and with that, change comes growing recognition of the
opportunities presented by evolving digital technologies. Previously focused on number crunching and
reporting profitability, accounting is now playing a larger role in the growth of the business — driving a
better customer experience and enhancing efficiency. The leading accounting approach is digital
operating model. In this environment, the accounting function must consider technology trends to future-
proof the digital operating model for 2018 and beyond.