Top 3 Reasons for Adopting Electronic Workflow by Accounting Firms
With the introduction of cloud computing which has made a great impact on the accounting industry, the Certified Public Accountants and other financial professionals along with their clients who can now collaborate after getting access to the same financial systems and information as per their requirement.
For most of the accountants, cloud-based accounting software are quite appealing due to numerous reasons: It is easy to use and offers different professional with access to different functions which are required for complete critical accounting tasks.
Even after this, any accountant’s role is more than simply utilizing the accounting software to finish the tasks- it also needs effective management of the process to offer meaningful financial information which is timely and accurate. Using this financial information, the accountants can give financial analysis and insights.
Most of the off-the-shelf cloud-based accounting software are available, but the real issue that accountants face is the management of the accounting process which doesn’t include the software, which makes their jobs quite tough and processes more complex.
When we look into deep, the most cloud-based accounting software generally lacks the flexibility along with the integration of a workflow system which standardizes and automates a client’s internal financial tasks. Most of these software that has workflow functions generally need time-consuming and costly customizations for numerous accounting processes that exist.
So when it comes to the next step beyond the cloud, is the capability to manage these financial tasks that are present outside of the best accounting software. The solution for this process is Electronic workflow. By the use of electronic workflow, the processes that are configured to keep best practices, the data can be viewed and accessed from anywhere along with the ability to do the tasks which can be performed from anywhere with fewer efforts. Without the electronic workflow implemented, the accountants are left using accounting software in a piecemeal fashion, and they have to juggle a huge range of tasks and have to rely on paper or email trails to provide the support to the process. Mentioned below are three key reasons proving why accounting and finance personals should invest in the electronic workflow.
- Accountants can focus on providing financial analysis and insights.
Accountants are quite expert when it comes to understanding and evaluating numbers to present financial analysis. This skill set provides their clients with important value. But to provide clients with a higher level of strategic recommendations, it requires the accountant to focus on their system to create actionable financial information. With the standardization and automation of the process, and managing them centrally, the accountants can lessen the time and cost which is associated with lower value tasks to become an important advisor to the client.
- Automation of the tasks is quite cost-effective.
Every accountant is aware of the fact that each task which are involved in accounting processes are performed by different individuals. From the management of the payables, billing, receipts of cash, payroll, to financial reporting, are a list of important accounting goals that can be quite long. The Electronic workflows provide the accountants to standardize these different processes via creating and sharing these processes in the cloud-based environment. This, in turn, enables collaboration between the clients and accounting staff which also provide the ability to distribute the workflow and workforce along with saving money. By giving tasks to different people, the other level staff can work on their respective tasks, and the senior personals can then easily review the entry level work and hence the IT team then can manage the data integration.
- The automation and standardization of the processes are happening due to Technology, and if the firms don’t adapt this change, then they will be left behind in the steep learning curve.
Integrating these different systems, definitely, improves the accuracy of the finance related information by providing one system of trust and truth. With the automation of the process, the team can then access the same information which reduces errors from duplicate entry or various timing problems that emerge when data is updated.
Accounting is more about compliance and record keeping, it is about managing the data to receive reliable information related to finance. Accountants play a key role in offering their clients with better guidance which is based on important information to strengthen various business decisions. Along with steep learning curve, the accountants should be willing to keep a partner who can help them while they decide to make an investment or rely on their team to take care of the processes while improving their skills in the field of accounting, tax, finance, and technology.
With this, we end our article on why electronic workflow is need of the hour. With its key benefits which are aforementioned, the electronic workflow saves your time and money along with helping the accountants to avoid complicated processes which can lead to major issues.