How Companies Can Benefit from Innovative Accounting Technologies?

Accounting tools and concepts keep evolving. Academicians and professionals have introduced different accounting concepts that have resulted in a more accurate presentation of the financial position of the company.

Accounting concepts such as economic value added, activity-based costing, and others may have become mainstream now. But they were innovative concepts when introduced about four decades ago.

Here we will talk about some of the innovative accounting concepts and technologies that could change the way accounting will be carried out in the future.

Virtual Bookkeeping Services

The advancement of internet technologies has allowed the virtualization of various tasks. Outsource accounting firms can now offer virtual bookkeeping services with the use of internet and communication technologies.

Many organizations are benefiting from virtual bookkeeping services to save costs. They can benefit from a diverse and skilled accounting team who can assist them in the recording of accounting data at an affordable cost.

With the advancement of virtual bookkeeping technologies, companies with limited resources are also able to benefit from outsourced bookkeeping. They can benefit from skilled accountants who can perform labor and time-intensive tasks without having to spend a lot of money.

Virtual outsourced bookkeeping allows small businesses and startups to get the same benefit as large firms enjoy from hiring experienced accounting consultants.

Companies that outsource accounting tasks to third-party providers can focus more on the core operations. The business owners can focus on growing the business rather than getting trapped with the complexities of payroll, salaries, and taxes.

Outsourcing accounting tasks to virtual bookkeeping providers is an effective strategy to reduce operational costs. It can help in increasing productivity and boosting the profitability of small and even large businesses.

AI-Based Accounting

The traditional accounting environment involves accountants manually examining each entry so that they can be categorized correctly. But AI-based software will make the task of bookkeepers easier in identifying and categorizing accounting information.

AI accounting apps will make it easy to record different types of transactions. It will automate the process of categorizing data so that the accountants can focus more on ensuring an accurate record of data.

Outsourced bookkeeping service providers will adopt the AI-based accounting app to provide more streamlined and efficient bookkeeping services. The machine learning-based accounting apps will assist accountants in preparing accurate accounting data.

AI-based apps will automate the accounting process which will help in reducing repetitive tasks. Automation of accounting tasks can greatly reduce the time it takes to prepare accounting reports.

With the use of AI-based accounting apps, accountants will be able to focus more on ensuring compliance with accounting regulations and standards. Intelligent accounting through the use of AI-based accounting applications will also help in adapting to different business landscapes.

Outsourced bookkeeping firms can be able to provide a more comprehensive accounting and bookkeeping solution. They can generate reports in the required formats, assist in payroll and taxation, and assist in other complex accounting tasks.

Optical Character Recognition (OCR)

Accountants generally have to spend a lot of time making digital copies of physical records. They have to enter information in receipts, invoices, and other documents. Entering receipts and other data takes a lot of time for the accountant.

Manual entry of data is tedious and prone to mistakes. Employees may enter the wrong information when transcribing information. This can result in underpaying or overpaying invoices. The result will be a wrong depiction of the financial position of the company.

A company may face penalties for entering wrong information when preparing accounting or tax reports. Errors in entering accounting information can damage the reputation of the company among the distributors, suppliers, vendors, and customers.

Optical character recognition (OCR) technology can greatly reduce human error in recording accounting information. The technology can help convert physical data into electronic documents without the need for manual entries.

With the OCR feature, accountants can create structured accounting reports that are free from any type of errors. OCR solutions save the time for accountants by automating the data entry process. The OCR features allow the electronic extraction of accounting information from documents.

Apps with OCR features can scan documents and convert them into editable files. The numbers and figures in the document can be copied and pasted into a spreadsheet or word processing software. Advanced OCR solutions also contain validating features that ensure an error-free record of accounting data.

Cloud Based Bookkeeping

One of the relatively recent accounting innovations is cloud-based accounting. Cloud or online bookkeeping refers to the record of accounting data online. Businesses that use cloud bookkeeping services can reduce IT-related costs.

Cloud-Based accounting apps can handle almost all types of bookkeeping tasks. Professional accountants can use online bookkeeping apps to easily record different accounting information including payroll, accounts receivable, invoices, and tax calculations.

Cloud accounting software also makes it possible for outsourced accounting service providers to provide virtual bookkeeping services. Online accounting apps can handle different types of accounting and financial information.

Moving the accounting process online reduces the burden on the IT department. It transfers the responsibility of storing electronic accounting data to the vendor that provides cloud accounting services.

Integrated Accounting Solutions

Complete Integration of accounting tasks is possible through virtual bookkeeping services. Outsourced bookkeeping service providers provide an integrated accounting solution. The services of the virtual accounting provider result in a more streamlined process for recording accounting information.

Companies that hire outsourced bookkeepers won’t have to spend on the latest accounting tools. The vendor provides all the tools required for the efficient and timely recording of accounting information.

Join 1000s of Small Businesses and CPAs who outsourced their Bookkeeping to Maxim Liberty!

Try our award winning services with no risk. We have an unconditional money back guarantee on your 1st payment. Just 5 minutes of your time over the phone, can get you started with the best Bookkeeping service in USA while saving you hundreds of dollars.