In recent years, the accounting profession has seen the transition of business data and applications from traditional paper-based models to cloud-based digital platforms. Hosting information and software in a virtual environment helps save costs and improve overall productivity. Accounting technology came in the form of desktop applications, moved on to networking, and now, it is all about the Internet, cloud computing and mobile applications. Navigating successfully through this whirl of activity has propelled accounting firms forward, supporting efficient operations and excellent service.
Cloud accounting services allow small business owners and accountants to work closely throughout the financial year. This new model envisages accountants speaking with their offline clients regularly, to resolve queries and make corrections to the accounting records in small batches, as the financial year progresses.
However, despite the apparent advantages for both sides, every accounting practice will have a large core of clients who do not want to work in the new model. These clients work with paper documents and relatively low-tech approaches to keeping business records – relying on their accounting or bookkeeping professional to keep the accounting up to date. Many businesses thus continue to manage their basic incomes and outflows manually, or on Excel spreadsheets, or on small business accounting applications. They are more than happy to sort out the books with their accountant once a year.
What the accountant can do then is to take a copy of the clients’ data and work “offline”. Corrections can then be made, safe in the knowledge that the client’s records are secured. Once the final numbers are agreed upon, the accountant can process the year-end adjustments online, into the client’s cloud accounting software.
There is disengagement when clients provide information for processing, sometimes very late, and yet desire to have up-to-date information at their fingertips. This results in a perception that the accounting professional is unable to provide the level of service required. The latest technology must be seen as the way forward rather than a barrier that’s used to resist change.
Cloud computing is the current state-of-play in the business world and one cannot afford to be left behind. Clients are always looking for the best value and the most flexible businesses to work with. The ability to elevate the client experience to new levels of convenience is where firms can truly differentiate themselves.It will take effort and a significant time and material investment; however, one will begin to see the value in the way of efficiency, revenue, and client satisfaction.
Accountants must defend themselves against this new threat to their value and should take measures to combat the perception. The structure and workflow must be revamped so that the repetitive processes are streamlined and made easier to manage on an ongoing basis. Accountants must proactively request for and gather necessary information, especially with offline clients.
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