As an accountant, you may lean heavily on technology to get your job done. However, if you’re still relying on paper accounting, you’ve probably realized that you’re long overdue to make the switch over to digital. Not only does modern software increase productivity, but it’s more reliable and accurate.
So, in this article, we’ll go over the benefits of digital accounting, four software that accountants need, and all-in-one solutions to provide you with a one-stop-shop that will save you time and money.
Why Digital Accounting?
Not only is paper accounting is less accurate and outdated, but it’s incredibly wasteful. When you switch to digital accounting, you’ll reduce your carbon footprint and free up a lot of office space you once used for file storage. In addition, your employees will become more productive, and your client base will quickly grow. Organization and simple documentation is a selling point for both new clients and retaining existing employees.
Digitization is the standard in the workplace, so it’s essential to keep up with the times. Most accounting software allows you to sync your clients’ data directly, so you’re not copying things down. This minimizes the risk of data entry errors, provides your clients with high-quality results, and allows you to meet deadlines quickly.
Critical Accounting Software
Choosing the right software for your firm can be tricky, as there are many different solutions. Below are four of the most commonly used and recommended software features for accounting professionals to maximize efficiency and returns.
1. Secure File Storage.
Your clients trust you with their financial data, and you must protect their information at all costs. Without secure file storage, you risk hackers quickly accessing their bank information, which would be a disaster for everyone involved. To avoid potential lawsuits and a ruined reputation, finding the most secure storage software is one of the first steps you should take.
Although there are many choices, Dropbox is known to be one of the most reliable file storage platforms on the market. However, it can be pricey, especially since other solutions offer additional functions at a lower price. Shop around and find an option that meets your needs and budget.
2. File Sharing and Reporting.
Reporting to your clients is critical to meeting deadlines. Therefore, you need a way to share files safely to minimize the risk of anyone else accessing their financial data. Google Drive and Dropbox offer file sharing. Although Google Drive is free and provides more capabilities, it is less secure than Dropbox. Additionally, neither is explicitly designed for accounting firms, so you won’t be able to rely on them for total compliance with data storage laws in your industry.
3. Communication and Task Assignment.
Communication is a critical component in accounting, especially when working remotely. If your employees can’t reach you or the client promptly to discuss an issue, it can significantly affect the deadline for a project. In addition, this could negatively impact your reputation as a firm, making you look unorganized and late.
Part of communication is also task assignment. By implementing a software solution to your firm, you can get an overhead view of the entire workflow. Therefore, you can ensure that everyone is on the same page and that each person is working productively to do their part. Plus, you can quickly catch on when someone is lagging before it becomes a problem that affects the whole company.
4. Accounting Software.
Traditional spreadsheets can be handy. However, they leave room for errors that you can easily prevent with accounting software. Although many promising solutions allow you to download client data directly to the program, most don’t provide an excellent workflow to assign tasks easily and communicate with everyone. Plus, many of them are made for DIY bookkeeping purposes. So your client could use it themselves.
When searching for the right accounting software, you’ll need to find something made for professionals, so you can provide a unique service that your clients can’t get from self-bookkeeping.
While there is individual software that can provide unique solutions for each aspect of your accounting business, every one of them can add up to costly bills every month. Plus, most of them aren’t designed specifically for accounting firms. A one-stop-shop for all your accounting needs it the best option – for simplicity, and efficiency. Plus, four individual software can take up a lot of space on your technology.
Accounting practice management software can provide an all-in-one solution for:
- Workflow and task assignment;
- Secure file storage;
- File sharing;
- Accounting software;
When you choose software that offers a way to manage your entire firm in one place, you can streamline projects and make room to take on more clients. Plus, the software is designed specifically for accounting practices, so you don’t have to worry about non-compliance with data storage laws or pay for multiple costly programs.
When digitizing your accounting practice, you’re going to need either a program or several programs that allow your firm to complete work by the deadline and securely report data to the client. The software you choose depends on the services you offer and the size of your company. Most people opt for an all-in-one solution customized for the accounting industry. Plus, having everything in one place prevents projects from slipping through the cracks and ensures that everyone is aware of their daily tasks.