Technology in Accounting

The saying that goes is that accounting is the language of business and every accountant knows this very well. Language has gone through a number of changes throughout the period of history. But through all these changes, accounting technology has always played a part in ensuring that the accountant’s job is made much easier. As you have come to know more about technology, the accountant’s competency level has also improved and a new breed of professionals called online accountants have emerged. Advancements in Technology have enabled and enhanced the accountant’s capacity to crunch the numbers data efficiently without any error. He/ she now, have the ability to interpret the language of business so effectively, that those in accounting role have become the corporation’s / firm’s most trusted business advisor.

Development through the Ages

Although you did not call it technology, if you can go back in time with numerous attempts to build adding machines to assist an accountant with math related calculations. After the invention of the first working adding machine, came the invention of the calculator for information accuracy. But even with adding machines and calculators, the accountant still had to take the help of pen and paper. The process of measuring, identifying and communicating financial information was documented in the form of paper records, columns with numbers and hand-written statements (e.g. balance sheets, ledgers, company accounts etc). An accountant had to be a very methodical and have a passion for numbers.

Amy errors in the former methods of accounting and information recoding was costly to resolve both in terms of time and effort.

Towards the end of the 20th century the accounting profession was given a whole new set of tools with the advancements in home computing and computing for business. Computers and accounting software changed the way the industry worked completely. With programs such as Microsoft Excel (MS Office), an accountant now has an electronic spreadsheet. The need for calculators, ledgers, adding machines and pencils was now reduced. The job in hand became less monotonous with a lesser margin of error. The core training of accountants which included accounting qualifications, auditing and tax preparation utilised modern ways of accounting with I.T. With the advent of computers, the accountant may now be able to perform statistical accounting and analysis with greater efficiency.

Online Book keeping

Today’s accountants use a variety of sources both for inputting data and the output to clients or to 3rd party’s such as the HMRC.

The need for instant access to accounts 24×7 are just some of the reasons why online accounting is fast becoming a demand in the field of accounting.

The development in this field is rapid. Perhaps the conventional accountants would soon need to give their space to the new breed of online book keepers. That said, there are many other reasons to choose online accounting but for some, the traditional personal touch of meeting with a dedicated book keeper cannot be rivaled. When it comes to accountancy it’s not always the cheapest or quickest who prevail.

Author: MixoBiz

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