You might not think technology and accounting go together. But did you know that the accounting field has historically been quick to adopt new technologies? For example, accounting professionals were among the first to use the adding machine.
Technology has come a long way since the dawn of the mechanical calculator, and it continues to improve the accounting field. Here are a few of the positive ways technology affects accounting today.
Real-Time Auditing
In the past, if you wanted to get a clear picture of your company’s finances, you had to wait for a comprehensive audit — a process that was normally done quarterly or even annually. This process was time-consuming and often prone to error.
Fortunately, with automated accounting systems, executives can view a company’s current financial health at any time. Advanced accounting systems are constantly making calculations, which are faster and more accurate than those made by humans.
Seeing an accurate daily audit also makes it possible to spot potential issues before they cause significant problems. By contrast, if companies have to wait for an audit to spot problems, there’s a good chance that damage has already been done.
Allowing for Greater Insight
Before accounting software became commonplace, accountants spent most of their working hours manually doing calculations. With so much time dedicated to tracking a company’s finances, financial teams had little time to analyze that data and develop insights to help the company grow.
With cutting-edge analytics powered by machine learning and other emerging technologies, accounting teams can take a deep dive into financials. By tracking trends and forecasting the near financial future of a business, accountants can now play a significant role in planning and shaping a company’s next steps.
Ensuring Transparency
This is one of the most important examples of technology improving accounting. With paper auditing, company executives had to place great trust in the auditors. In a perfect world, every employee would have the company’s best interest in mind.
But this old auditing system left plenty of room for fraud. And in the case of auditing massive, multinational companies, creating accurate, coordinated, and transparent results was next to impossible.
With powerful accounting technology, even incredibly complex transactions can be completed in seconds. And because the results can be quick and easily shared across many branches of a company, this accounting method builds trust while promoting financial health.
How Can Technology Help You?
Today’s business world is full of examples of technology improving accounting. And if your business still uses old-school accounting processes, you’ll be amazed at what newer technology can do for you.
Fortunately, you don’t have to do the hard work of researching, selecting, and adopting the right accounting software for your business. At Superstein PA, our accountants work at the intersection of technology and accounting every day. Want to see your company reach new heights? Contact Superstein PA to get started on your business goals.