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3 Ways Technology Revolutionized Accounting

Let’s face it, accounting services hasn't historically been seen as the most glamorous and exciting profession out there. However, in recent years, new accounting-centric technology solutions have brought a lot of new energy to the accounting industry. Here are three ways in which technology has revolutionized how outsourced accounting services providers add values to the businesses' they serve:

1) Automation Reduces Human Error and Frees Up Human Resources

When it comes to accounting, automation is a great thing. It allows your computers to do what they’re best at (processing data quickly and accurately), while your accounting team focuses on what they do best (being creative and critical thinkers). Not only does it drastically reduce human error in data entry, it also frees up valuable human resources, i.e. your actual accounting team. Automated data entry will allow your accounting services provider to be more than just a number cruncher, but a financial analyst and champion for your business, working with you to make decisions, and to help you with financial planning so you can better manage your business. In fact, before accounting automation tools were available, companies overwhelmed with a high volume of manual transactional work simply carried the fixed expense of in-house employees whose sole function was to manually process accounting data. Now, companies can effectively outsource their accounting function. The accounting services provider, with new technology at their disposal, can replace the heavy lifting formerly done by employees, greatly reducing the company's accounting costs.

2) Accounting Apps Make Accounting Accessible

Cutting edge accounting apps that have come on the market have been a boon to accounting services providers and their clients. The newly redesigned QuickBooks Online Accountant allows outsourced accountants to manage a portal where they can work with all of their clients and also affords them wholesale pricing to offer to their clients as well. For about $15/month, each client can share their books to up to 5 users, and give their accountant access to boot. QuickBooks Online has integrations with 100's of ancillary accounting apps, such as Bill.com for payables management, and TSHEETS for employee time tracking. All of these applications allow a business to operate its accounting function completely online in a fully integrated environment, that not only speeds the pace of their accounting workflow, but gives all of the players real-time access to the accounting data from anywhere. Many outsourced accountants will set-up the right cloud technology platform to meet the business' as part of their new client onboarding process.

3) The Cloud Saves Space, Time and Stress

The Cloud has completely revolutionized how we think about data storage. When your accounting team puts your information in the cloud, this is more than just a storage solution. This becomes a back-up for your most vital financial information, as well as your disaster data recovery plan to ensure that after a catastrophe, your data can be recovered without you and your clients losing any sleep. We once had a client that had a fire in their office building, and lost access to most of their business data for about a week, as they could not access their on-site file servers. They, however, had no downtime in accessing their QuickBooks file and other accounting records, as these were all managed in the cloud as part of our services package. Just make sure to understand your cloud storage provider has solid security and data recovery procedures in place as part of your vendor selection process. Also, as part of your internal process, ensure all employees save 100% of their documents in the cloud, and don't save anything locally

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About Jim Rice

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Jim Rice is a national franchisee bookkeeping expert and managing director of Supporting Strategies. The firm offers bookkeeping and operational services. Rice can be reached at (407) 930-9420.

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