The accounting industry is next in line for disruption. After major disruptions in every sector, accounting is the next major field on the verge of change. The pattern keeps repeating everywhere — complacency and manual processes eventually lead to dissatisfaction.
Clients keep looking for changes in their customer service experience and management keeps searching for better financial control and eventually both converge at a technology solution that completely alters the customer experience and the way financial data is controlled and presented.
Samuel Edwards identified “5 Trends Driving Disruption in the Accounting Industry” a few months ago and rightly pointed out that technology has revolutionized operations across industries and while these advances are strengthening some businesses, accounting departments are about to be disrupted.
Edwards identified the reasons for disruption being stagnation, lack of automation and time-consuming manual processes. While most industries have been upgrading their legacy systems, the accounting industry has been slow to adopt new technologies. This has led to a great inequality as businesses that jumped on the technology bandwagon at the right time are thriving while many accounting firms are struggling.
Modernizing ERP accounting software is one way these businesses can avoid disruption. Accounting firms should take the advantage of the cloud ERP software that offer strong financial management features coupled with specialized add-ons such as advanced bank reconciliation. This has led to enormous gains in time which was earlier spent on manual processes and understanding complex spreadsheets.
Accounting firms that have adopted ERP software are able to focus on business operations and strategy. They are also able to better focus on client needs because of the gains in technology. Automation has led to great growths in productivity and has increased efficiency.
Firms that have also been using ERP accounting software are also able to become more customer centric since most of the tedious tasks are being handled by the ERP. Cloud-based ERPs have also led to a reduction in costs as most of the Cloud ERP vendors pay for the infrastructure such as the servers themselves.
The capital expenditure for accounting firms is less and with the pay-per-user subscription they can scale up and down according to their needs.
Features to keep in mind before selecting an ERP
Security is a major concern for many accounting firms as most of the information in the industry is generally confidential. Cloud ERP vendors have increasingly been offering top notch security and many firms have found it easier to switch to the cloud because of the great security features.
Compliance, however, is another factor that accounting firms need to bear in mind when it comes to technology. An important consideration is whether the ERP accounting software is capable of providing features that can encompass all the regulatory compliances that are being enforced by the various financial agencies.
Benefits of ERP accounting software on cloud-based system
1. Accessibility: With a cloud-based system, the ERP accounting software can be accessed from anywhere with an internet connection.
2. Pick and Choose: Many companies provide a basic suite of integrated programs like inventory control, accounting and point of sale. Beyond these core modules accounting firms can opt for add-ons like payroll functionality or e-commerce components when the need arises.
3. Accuracy: Once data is input into the cloud-based system it rarely requires duplication. The instances of human error are reduced and the cloud ERP’s automated systems ensure you don’t have to input the same information twice.
It is an interesting time for the accounting industry as it tries to accommodate these changes into its business model. The winners and losers from these changes will emerge based on how well they adapt to these technologies.