The-Accountant-July-Aug-2018

INFORMATION TECHNOLOGY
run operations with no delay.
In other countries, tax software has
been developed. This tax software has
helped improve accuracy while reducing
margins of error - something businesses
want to embrace in order to avoid tax
penalties and prevent issues with stake
holders. Better tax software also helps
streamline audits by making them more
efficient and effective. Raymond Cheng,
a Council Member of the Hong Kong
Institute of Certified Public Accountants,
states that “An understanding of new
accounting software and other business
and financial models will be necessary
if practicing (American spelling)
accountants are to effectively conduct
audits and discharge their responsibilities.
Continuing professional development and
education in this area will be necessary for
auditors.” Accounting and tax software
advancements have streamlined the entire
process of accounting and filing returns.
Most accounting software integrates
with most corporate tax software, which
means the data is quickly segmented
and categorized in the appropriate tax
categories. Not only does this make
tax filing faster, but it also makes it
more accurate. As long as the data in
the accounting software is categorized
correctly, the information going into the
tax software is entered correctly.
Accountants are increasingly
dependent on their mobile devices
to accesses data. Mobile connectivity
also links accountants to their clients.
Companies like Xero are helping to
launch the mobile age of accounting.
Their mobile apps help accounting firms
manage their business while on-the-move.
Firms can reconcile, send invoices, add
receipts and create expense claims from
smartphones or tablets. Bill Price writes
in “Accounting Today” that, “Mobile
accounting could mean different things
to different people and businesses; so the
first step in a successful rollout is defining
what it means to you and your company.
For example, consider who the users will
be and what they will be using it for.
Think about the different functions you
would want your mobile accounting and
financial solution to cover.” Many small
business owners do not need a full-time
in-house accountant. With the internet
and advances in information technology,
a virtual accountant is as effective as
an in-person accountant. This way of
doing business reduces overheads and
travel time. Business owners save money
because information technology brings
accountants directly to the company
finances without travel time.
Optical Character Recognition
(OCR) technology enables accountants
to convert scanned paper documents,
PDF files, or images captured by a digital
camera into editable and searchable data.
This type of record digitization has helped
streamline the archiving process by
making documents searchable, sortable,
and transferable. Another added bonus
to this type of technology is that now
accounting firms are empowered to be
nimbler with their accounting processes.
Andrew Marder from “Accounting Web”
writes that, “OCR is the technology that
finally kills the hand-entered receipt...
The technology has already made leaps
and bounds, but there is plenty of room
for process improvement.”
Major accounting programs and banks
sync with a few mouse clicks. Online
accessibility provides bank information to
the accountant as soon as it is available,
which streamlines the process of monthly
bank account balancing. The accountant
only needs to go in and troubleshoot lines
items that do not make sense. Business
records can more easily be kept up to date,
and the accountant’s life a lot easier at the
month end and when tax returns have to
be filed, all of which minimizes costs to
the company.
Social media has become an essential
tool for firms wanting to engage with
their current and potential clients while
expanding their brand reach. Experts see
social media as a tool that will continue
to evolve and provide accountants with
a valuable sales and marketing platform
that can instantly connect firms to current
and potential clients. Most accounting
firms understand the importance of
implementing traditional marketing into
their overall business development plans,
but many firms may not realize the power
of integrating social media marketing
into their long-term marketing strategies.
Social media should be a part of a firm’s
overall business development strategy and
if done consistently, will help amplify the
effectiveness of all other marketing and
business development efforts.
In a survey conducted by Robert
Half Management Resources, 41 percent
of CFOs cited technology as a major
source of stress in their jobs, saying that
innovations in accounting are progressing
so rapidly that it is difficult to keep up.
Becoming familiar with the biggest trends
minimizes the struggle with increased
efficiency and a more streamlined
approach to managing corporate finances.
All accountants need to become much
more expert in the use of technology –
and that will relieve them of that stress.
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