How Technology is Changing Your Company’s Accounting Functions
Advancing technology is changing the way businesses operate and handle accounting processes. The ability to access accounting software in the cloud, anywhere and anytime, makes accessing your company’s financial data easier than ever. Below are even more benefits of transitioning from traditional accounting methods to new technology.
Financials at Your Fingertips
With cloud-based accounting software internet access is all you need to perform most accounting transactions. Submitting employee expenses for reimbursement is as easy as taking a picture of receipts and uploading through an app. Below are a few processes that can be easily accomplished from your computer or smartphone:
- Entering and paying bills with online bill pay
- Sending invoices
- Receiving payments
- Accessing financial statements
- Viewing accounting reports
- Submitting expense reports
Increased Accuracy, Efficiency and Simplicity
Along with being easily accessible, online accounting makes tasks simple, efficient, and more accurate than being done by hand. Software has the capabilities to catch mistakes, such as a bank error for withdrawing a different amount than a check states. Below are a few specific examples of how technology makes processes simpler and more efficient.
Bank Reconciliations – Automatically adds deposits and withdrawals instead of totaling by hand. Reconciliation reports make it easy to see outstanding checks and give a more accurate bank balance
1099 Tracking – Ability to run Form 1099 reports for vendors showing the total amount spent and the amount you need to file for a particular vendor
E-Payments – Online payments significantly reduces the time a vendor waits to receive payment, eliminates writing checks, and is cost-efficient
Sending Invoices and Receiving Payments – Create and send an invoice via email to customers all in one location. Invoices can be paid online and recorded automatically through accounting software
Recording Bank/Credit Card Transactions – All transactions automatically flow into your software. Once a vendor has been processed once, it remembers how it was coded and automatically populates needed information
Streamlined Integration for Easy Automation
The ability for platforms to integrate eliminates the need to enter data in multiple locations. Accounting software can link to bill pay and payroll software to easily automate and streamline processes. Recorded bills in a bill pay software can automatically pull necessary information into your accounting software. Payroll platforms can automatically record payroll entries, checks and tax payments and even create W-2s for you, making filling out forms by hand and mailing payroll tax payments a thing of the past.
The benefits of cloud-based accounting are increasing with advancing technology. To find out how your business can increase financial accuracy and streamline your financials, contact an Anders advisor or learn more about Anders Outsourced Accounting Services.