10 Ways Technology is Transforming Bookkeeping

Bookkeeping is a facet of accounting that has seen significant changes due to the rise of technology. Developments in bookkeeping and general accounting services have increased the amount and type of financial information that can be recorded and used by businesses.

Here are the 10 ways technology is transforming bookkeeping

1. Technology is speeding up bookkeeping services

Bookkeeping is a process that often involves input from multiple sources, from different people and companies. It can be an arduous task, attempting to fit all of these moving pieces together constantly. One of the major benefits of new technology is that this can all be done digitally. There is no downtime while you wait for the necessary information, or to physically meet up with someone. Information can be shared by multiple people in different locations using cloud services, and financial information can be updated far quicker. Time can now be spent focusing on other, more important aspects of a business.

2. Bookkeeping can be done on the go

With the rise of portable technology, tablets and phones can be used to do almost anything that you can do at your computer. There are a number of great apps that you can download, so that no matter what time it is or where you are, you can keep up-to-date with bookkeeping tasks. This is especially important for companies with multiple offices or locations, or staff who work remotely. There is no need to be physically present to complete bookkeeping duties, but everyone can still receive the necessary information wherever they are.

3. Technology can provide greater support for the growth of your business

The scope of technology within bookkeeping is increasing and is being used to understand more and more about the financial side of your business. It is now possible to generate highly accurate reports about future trends using existing data, which can then be used to maximize the growth and development of your business. This technology can also be used to spot any irregularities or errors and gives you the opportunity to easily fix them immediately, without it ruining your financial records.

4. More and more aspects of bookkeeping are becoming automated

It is highly unlikely that the entire future of bookkeeping will be robot-driven. However, there is an increasing number of aspects of bookkeeping services that are being completed automatically. This increases the accuracy of records, by reducing the opportunity for human error, and it means that your business can focus on other areas. Automation is still in its primary stages at the moment, but swift development will see it change the field more in the very near future.

5. It has created extra security for your records

One of the major benefits to technology is the extra security and protection it can offer businesses, while still remaining incredibly convenient. Of course, this is not specific to all digital bookkeeping services, as some are definitely better than others. But if you invest in a high-quality bookkeeping service, you can be sure that your data is protected by the latest in digital security. This is constantly evolving but should at the very least involve encryption on any cloud-based services you use, and any apps or programs that can be downloaded onto personal computers or mobile devices.

6. Information will never get lost again

Working digitally also means that you are less likely to lose important information. Bills or invoices printed on little slips of paper can easily get lost or misplaced. Businesses tend to only hold onto single copies of physical files, to prevent excessive storage, but if this is lost, there is no backup. Having a digital copy of everything is so much more convenient, and you won’t lose anything ever again. Records can also be accessed whenever you need, in order to find the right information. As long as you have cloud-based technology, you can access all of your bookkeeping data whenever you need it, with no worries about its location.

7. Everything is done by a single system

Many people are utilizing a single piece of software for all of their bookkeeping and accounting needs. There are programs that can be purchased and modified until they serve the exact purpose that your business requires. Bookkeeping is now faster, and all information is stored in a single place, making it so much easier to locate files.

8. It helps to improve communication between parties

Whether you are the client or the provider in any given transaction, there is a need to remain transparent, and share information. This can get confusing and necessary data can often get lost. Technological systems for bookkeeping help to facilitate open lines of communication, so that the appropriate data is available for all of the necessary parties, as soon as they need it. This helps to speed up all processes related to anything financial and can help to ease finance-related tensions.

9. Bookkeeping tasks can now easily be outsourced

Small businesses may not necessarily need a full-time bookkeeper, but they still require their services.  An excellent solution to this problem is to outsource the work to a company with the right experiences and qualifications. Utilizing cloud technology, this outsources work can be completed by the right person for the job, regardless of where they are in the world. Allowing an outsourced company to complete your bookkeeping is often a cost-effective option for small or medium-sized businesses, and it means that the job is completed faster and more accurately.

10. Accounting staff are developing new skills

As technology shifts the field of bookkeeping, accounting staff must learn how to keep up. Their roles become increasingly more digital, and they must learn how to navigate new technology as it develops and becomes integrated into the workplace. This isn’t necessarily harder for accountants to learn, it is just different from traditional bookkeeping practices that don’t have as much technical influence.

Keep your business up to date with the right bookkeeping software

If you want to improve your business’s bookkeeping services, consider investing in one of the latest software programs available on the market. There are a number to choose from, all offering slightly different services that can be tailored to any company, no matter their focus or size. If you don’t know where to start, check out our recent blog post about bookkeeping softwares that we recommend using.

Here at Centrosome, we can also help you transform your business with our bookkeeping services. Whether you need ongoing support because you are looking to outsource your bookkeeping, or you need one-off help to prepare your taxes, we are here. Our experienced team can provide you with the advice you need to grow your business, maximizing your potential.