How technology can drive efficiencies for your business

There’s no doubt that things have changed in recent years. In the era of digital transformation, speed and efficiency rule. At the heart of that lies technology – it connects and improves how people, systems and organisations function together. In this article,  multi-product accountancy software Dext shares how that applies to accounting and how you can work smarter with your accountant.

How does technology help businesses work with their accountants?

In many parts of business, technology is there to help simplify complex scenarios. In accounting, that’s not always necessarily the case. That’s because much of the work accountants do can’t be simplified in a few clicks; it’s far too complicated.

Technology’s role in accounting is to maximise efficiency. For instance, if you already work with an accountant you’ll know that much of their work hinges on receiving the correct paperwork. That requires a fair amount of admin – time and effort that can otherwise be automated.

Benefits of technology in accounting

1. Better decision-making: With up-to-date financial information, reports and insights, business owners can empower themselves or their accountant to make more informed decisions about their business.

2.Improved accuracy: Accounting software can provide real-time visibility into a business’s financial position, which can help to identify and correct errors more quickly.

3. Enhanced security: Software ensures better security than keeping manual paper records as data is often stored using bank-level encryption – reducing the risk of loss or theft. These also include automatic backups, which help to ensure financial records aren't lost in the event of a disaster or system failure.

4. Easy access: Instead of sifting through folders of paperwork in search of one transaction, you or your accountant can use software to search for that data instantly.

5. No-fuss co-operation: With cloud-based accounting software, you and your accountant can streamline how you work together without the need for in-person meetings or having to physically drop off your documents.

Examples of technology helping business owners and their accountants

Invoicing

Invoicing isn’t the most exciting part of running a business. But when you automate your invoice management, you save yourself plenty of time – and headaches – by removing the need to manually create and send them to your customers. This also guarantees consistency, which goes a long way when your accountant tries to categorise and store them.

Expense management

Expense management is difficult when receipts and other key paperwork go missing. The fix is automated data extraction. These tools allow you to easily scan, categorise and store receipts, invoices and bank statements from your phone. You can then send this data straight to your accountant, ready to be published to your accounting software. It means there’s far less back and forth between you and your accountant, and reduces the delays associated with lost paperwork.

Accounting for digital commerce

If you run an online business or use in-store point-of-sale systems (POS), it can be difficult to keep track of transactions from multiple channels. Luckily there’s now accounting technology to meet the specific demands of digital commerce, allowing you to easily split out sales, fees and refunds – and allocate the right taxes, whatever the region.

The main benefit of this technology is the reduction in time to get complete information to your accountant.

Get in touch with TaxAssist Accountants today

Technology is a brilliant way to both streamline the work between you and your accountant, but also reduce  potential risks. As mentioned, it is a facilitator – there to steady your working relationship and iron out any creases. To find out more about accounting technology, we suggest getting in touch with our team today for expert opinion on what technology is best for you.

Date published 19 Apr 2023 | Last updated 19 Apr 2023

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.