Accounting software is a computer software especially designed for accounting professionals to manage accounts and perform day to day accounting operations. Accounting is asystematized practice, work or process of communicating and tracking financial data. A business organization apply accounting software in their day to day accounting practices for different purposes including internal and external audits, required reports and financial analysis to comply legal or internal managerial requirements. There are various types of accounting software including simple and easy, single-entry programs for individual record-keeping to more urbane, double-entry systems that can process and track accounts receivable, accounts payable, payroll and inventory, among other features and functions.
Accounting software is a vital tool for any business. It helps a business manager run the business efficiently and profitably. With the arrival of cloud computing and automations, bookkeeping too has undergone many changes over the last one decade. We can witness changes happening in the global business environment every now and then. And thus, it is necessary to be updated with such rapid changes.
Key accounting trends of 2020 that can impact the complete accounting software industry:
1. Cloud Computing
Cloud computing is one of the trending technologies that is not showing signs of slowing down. According to a study by North Bridge (venture capital firm), approximately 75% of IT managers and senior executives stated that they were using at least a single cloud-based business application.
What’s attracting towards cloud? A cloud approach is a powerful choice for companies who are seeking to outsource software and hardware support for reducing costs and focusing on core competencies. Cloud-based options also let a simple extension of system access to branch offices and remotely active users. This capability for direct access to systems with just a web browser and consistent internet connectivity is helpful in another core benefit which is ability to use business systems and data, anywhere, any time.
2. Comprehensive Functionality
A study of modern accounting software discloses that they typically include many applications and modules that go beyond the conservative definition of‘accounting software.’ The present accounting software is expected to include functionalities for supporting manufacturing, sales, inventory management, as well as other business domains.
Single systems additionally offer a consistent data set such that real-time changes in one system are replicated in other systems. A single data record can help improve transparency and get rid of bottlenecks in multiple departments.
3. Online Support for Implementation
Due to the complexity in accounting software, user may sometime need additional assistance from technical specialists for proper configuration, installation, and support. But with the convenience of widespread broadband connectivity, a user is not limited to a specific geographical location to seek assistance. This access to online support suggests that the users have the option to choose from a range of support options.
4. Mobile Accounting
The remotely located workforce is now a common phenomenon in many enterprises. To ensure that team members can get a task done on the go, it is important have mobile accounting applications in place. Mobile accountancy is essential because automated documentation is slowly replacing paper-based invoices and payment receipts, which is being widely accepted as well. Therefore, integrating automated mobile technology in your accounting processes can be a win-win situation for your valued clients as well as your team members.
5. Analytics and Reporting
It’s been a practice for quite some time now to use data for guiding strategic decision making. But the emphasis of business intelligence tools in accounting software is a new trend. One can now can measure the impact of business analytics tools on the performance of business. The integration of analytic tools in accounting software can help users to make future strategies on specific issues such as where and how to invest, where expenses are higher than expected and how to control them.
Additionally, enterprises are seeking for features that could generate financial reports, such as balance sheets, cash flow statements, profit and loss reports, etc in a professional and presentable manner. Eventually, this data is vital to make smart financial and management decisions.
Accounting has surelystepped into its golden age with theadvent of these new trends into bookkeeping.
Conclusion:
As new technologies continue to transform the way businesses run and function, holding on to traditional methods of accountancy practices could leave you back in the growing competition.
Accounting is not going to be any easier in the future. Therefore, it is important to adapt new technology and new trends in accounting to improve business efficacy. In the growing business environment, adapting the right technological developments in accounting will contribute towards your decision-making ability and the overall success of your enterprise.
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