In the past number of years there has been massive development in accounting technology. Accounting technology enables accountants to manage accounts and perform accounting operations using computer software applications 

Although there are numerous benefits associated with accounting technology including:

• Time saving
• Higher Productivity 
• Data Accuracy
• Cloud based applications 
• Real time information

The two main benefits which stand out are:

Automation

With automation, a multitude of accounting documents such as invoices, checks and account statements have become simple and easy to create, send out to customers and generate payments. Necessary financial reports can be generated in a click of a mouse button. Financial data are posted to respective financial ledgers or accounts automatically, which avoids manual errors and ensures consistency and integrity. 

Employees can automate routine and repetitive manual tasks using accounting software. Data storage ability of accounting software allows rapid information sharing and better communication among employees. Sophisticated accounting software applications handle complicated issues such as foreign currency transactions, supply chain management and logistics management. 

The integration between multiple systems including CRM, logistics and accounting all integrate seamlessly together and at affordable prices.

Increased Management Efficiency

Accounting software applications keep the workforce more focused and efficient. Faster and more efficient processing of financial reports simplify the process of management decision-making. 

Employees can automate cumbersome and labour-intensive accounting processes and focus on other important and strategic activities. Advanced accounting software, with its inbuilt mechanism, ensures stringent risk and compliance procedures to meet the regulatory standards. Comprehensive business performance and sales reports help management take important decisions on revenue-generating strategy.

More technological changes on the horizon

Looking forward to the future, the introduction of artificial intelligence will create additional efficiencies. Rather than having humans checking transactions, machines will do this.

Another addition will be blockchain technology, a computer-based recording system that uses cryptocurrency within a user-to-user network. While blockchain may have gained popularity due to bitcoin — a digital currency in which a record of transactions is maintained, and new units of currency are generated independent of a bank.

The attractiveness of blockchain for accounting lies in “the possibility of a new type of accounting ledger — one that can be continuously updated and verified without the threat of being altered or corrupted,” Accounting Today explains. Because blockchain enables users to access ledgers in real time, as well as create smart contracts and record transactions.

As a by-product of improved accounting systems and multitudes of data available the ability be able to capture this” big data” and with the right tools this information can be turned into opportunities to interpret, analyse, and advise based on this data.

How many times have we heard that famous saying “time is money”? In order to reduce fixed costs in your business it makes perfect sense to outsource as many of your process related chores in your business so you can concentrate on what matters most, growing your business  

The big question is what parts of your business you can outsource without having a direct impact on the effective cogs that make your business work.The two main areas that are affected the least and can create considerable cost savings is customer service and the finance function. 

This all sounds great, but you need to be wary of cheap or unreliable solutions.

Having your mothers next door neighbour who worked as a bookkeeper in the early sixties take on book-keeping duties once a month can seem like a great idea. She has come recommended by your mother who knows how to keep a ledger up to date, it saves you having to do it and, most of all, she’s cheap. However, you also know another classic saying you get what you pay for. Yes, your books are being kept in order, but what other benefits are you missing out on because of technology and industry changes? 

It’s understandable that you don’t want to invest in a full-time accountant or CFO. Your business might not need it, or it’s a start-up and you can’t really afford it. But you need to consider the long-term implications of low-cost services like your mom’s neighbour.

Invariably, based on her age, she will be using out of date systems that aren’t a good match for the needs of your business. Twinned with her lack of expertise, and knowledge of systems available you can be left with a system that most likely exposes your business to financial instability and is inefficient. 

The same applies at the end of every financial year – tax time. Using a low-cost service may be ideal for simple, domestic accounts, but not your business. You might have had a few complicated transactions or a few issues in respect of Human resources. This will require the attention of an experienced person who understands the tax system. A wrong choice or lack of experience in dealing with something could lead to an audit which will involve hours and hours of time adding costs plus the likelihood of monetary fines as well.

Outsourcing bookkeeping and other ancillary financial services is a good idea. The right choice can lead to improvements in system processes that will save you money. It frees up time so you and your staff can focus on what you do well, growing the business. 

However, you need more than someone who passively stores numbers and logs transactions. You need people who can visualise the scope of your business, now and into the future. People who have ideas and solutions that integrate with your plans. People who offer expertise, experience, and efficiency. People that can visualise your data in a way that lets you easily understand the key drivers in your business and how these are tracking. People that can advise on explaining your business’s financial performance. They can act as  for as well as act as a sounding board for any ideas for future growth and covert these ideas or thoughts into data to evaluate the likely success or failure 

They’re certain to cost you a little more in the short term but save you time and money in the long run. After all, buy cheap, buy twice.

Not spending money on hiring a bookkeeper will cost you in the long run?

How many times have we heard the famous saying "time is money"? To lower your business's fixed costs, it makes sense to outsource as many process-related tasks as possible so you can focus on what's most important: growing your business.

The big question is what parts of your business you can outsource without affecting the parts that make your business work.

Customer service and the finances are the two main areas that will be affected the least and can save a lot of money.

This all sounds great, but you should be careful about solutions that are cheap or do not work.

It might seem like a good idea to have your mother's next-door neighbour, who worked as a bookkeeper in the early 1960s, do the books once a month. Your mother told you about her. She knows how to keep a ledger up-to-date, so you don't have to. Plus, she's cheap. But you also know that you get what you pay for, which is another old saying. Yes, your books are being kept in order, but what other benefits are you missing out on because of changes in technology and the industry?

It makes sense that you do not want to pay for a full-time accountant or chief financial officer. It could be that your business does not need it or that you're just starting out and cannot really afford it. But you need to think about what low-cost services like your mom's neighbour will mean in the long run.

Regardless of her age, she will always be using old systems that do not work well for your business. When you add her lack of experience and knowledge of the systems out there, you could end up with a system that leaves your business vulnerable to financial instability and isn't very good at what it does.

At the end of each financial year, which is tax time, the same thing happens. Using a low-cost service might be fine for simple personal accounts, but not for your business. You may have had some difficult transactions or problems with Human Resources. This will need the help of a skilled person who knows how the tax system works. If you make the wrong choice or don't have enough experience with something, you might have to go through an audit. This will take a lot of time and money, and you might also get fined.

It's a good idea to outsource bookkeeping and other financial tasks. If you make the right choice, you can improve the way your system works, which will save you money. It gives you and your staff more time to do what you do best, which is to grow the business. But you need more than just someone to store numbers and keep track of transactions. You need people who can see how big your business is now and how big it will be in the future. People who have plans and ideas that fit in with yours. People who have knowledge, experience, and know-how. People who can show you your data in a way that makes it easy to see how the most important parts of your business are doing. People who can help you explain how your business is doing financially. They can be a sounding board for any ideas for future growth and turn these ideas or thoughts into data to figure out how likely it is that they will succeed or fail.

They will cost you more in the short term, but they will save you time and money in the long run. Buy cheap, buy twice.