The Role of Technology in Modern Accounting Practices - Tarsus

Technology has always played a vital role in accounting, mainly due to the industry’s strict compliance mandates and the complicated calculations required. Thanks to the advent of artificial intelligence, technology, and accounting are becoming more intertwined than ever. This article will explore the role of technology in modern accounting, as well as a unique strategy that can help you leverage the best accounting software without shelling out tens of thousands of dollars per year.

Benefits of Incorporating Tech into Your Accounting 

According to Forbes, there are three main reasons why a company would want to incorporate technology into their accounting practices:

1. Building Trust: For large companies, it’s unreasonable for a team of accountants to keep track of all of the company’s financial transactions – no matter how talented the team is. There is just simply too much volume. So, technology must be incorporated to ensure that all income, assets, and liabilities have been properly documented. Having an automated accounting system helps a company show that they prioritize their books – helping to build trust among stakeholders.
2. Real-Time Reporting and Analysis: Historically, companies have typically expected to provide financial updates at least once a quarter. However, modern technology is making it possible to monitor a company’s financial performance in real-time – helping to provide key insights to executives and allow for more rapid decision-making.
3. Delivering Value: Historically, accounting has been thought of as a repetitive, manual task. However, since accounting can now be automated so easily, it can now be leveraged to discover insights, uncover trends, and plan effectively. However, this is only possible by incorporating technology into the accounting process.
   

There are dozens of benefits of using technology in your accounting practices. However, while there is little doubt that bringing on technology will greatly benefit your team, accounting software can quickly become a major item on your Profit & Loss Statement.

While basic accounting software can be fairly cheap, more sophisticated tools can quickly cost anywhere from $375 to $1,000+ per user per month, according to Software Advice. For large companies with massive budgets, this may not be an issue. But, this high cost can be a major inhibitor for smaller companies with more limited resources. Fortunately, there are ways that you can get access to top-notch software – without paying the hefty price tag.

Incorporating Tech Without the Bill 

For companies looking to enhance their accounting practices (without paying for expensive software), one option is to consider bringing on an outsourced CFO.

An outsourced CFO is a financial professional (or team of professionals) who can help you complete financial tasks on an as-needed basis. These tasks can be anything from day-to-day bookkeeping to reporting to high-level financial strategy. But, the best part is that outsourced accounting services often have access to best-in-class accounting tools. By bringing on an outsourced CFO you can ensure that your company uses the best software available while also keeping your expenses manageable.