Is There a Need for Technology in Managing your Accounts?

Money is an extremely vital commodity for human survival; without it even staying in the comfort of your home is impossible.

From what we eat to what we wear, everything is decided by the value of pound bills in our pockets.

So, something that is this crucial for us, and our existence has to be treasured, right?

From household to business, everyone works to earn it and maintain the amount that is already earned.

Focusing on the business front, entrepreneurs and business people have been managing g their accounts manually until the beginning of the 21st century.

The present times have realised the business people that management of accounts through computers is way more effective.

Now, this trend has moved one step forward with a business seeking automation and removing human intervention from accounting.

I never thought this would be possible, but it somehow has become a vogue that has gained a significant following.

Let us understand and scrutinise the same and see if it genuinely holds up the flagship the business world gives it in accounts management.

The New-Age of Automation in Accounting

We know that technology is slowly lessening the need for human involvement in all areas of life, from households to businesses.

So, when the idea of making the management of company finances was put forth, it was no surprise that nobody opposed it; instead, people welcomed it with open arms.

The process of automated accounting is not software in itself. It is more like a concept and an umbrella term that encompasses every software that promotes automation in this area.

Companies and organisations all over the world spend millions of pounds on accountants doing mundane tasks such as filing invoices in their software manually. Although this work is crucial for the companies, it is also not quite significant that a person needs to be hired.

Something as simple as billing does not mandate human efforts and can be done through computerised technologies with ease. So, companies found a solution in automation and even artificial intelligence.

They not only reduced cost but also avoided the unavoidable human errors that seem to happen, even when the human is extra vigilant.

The most used software that aid in automation is;

Cloud Computing

The most hyped and efficient software that promotes automation is Cloud Computing. I am sure you must have heard of this term, even if you do not know what it means.

The word cloud in the term refers to the internet or online. It is a concept that uses the internet to store information and avoids the user the hassle of storing and managing data on his desktop.

The cloud’s ability to store massive amounts of data and letting the user access tons of it with ease has made it immensely popular with businesses all over the world.

On the cloud, up to 1 Exabyte of data can be stored. This value equals to approximately 1,073,741,824 GB. It is that huge. My phone has a storage capacity of 512GB, which is not even 1% of the former figure and I still think that is huge.

With a space like that, computers do not need to function as much as they did in the past.

Since this is one concept that is being used by all companies and different branches of the said companies, it also helps in encouraging standardisation.

As a result, it was evident that the concept of cloud computing would expand, and it developed into cloud computing accounting software.

At present, Quickbooks, Xero, and Freshbooks are the most prominently used platform of cloud computing.

The double book-keeping that has been quite popular in accounting cannot compare to the efficiency and productivity that cloud computing can achieve.

Benefits of Cloud Computing

Cloud computing and everything it entails is a class apart from anything else on the market. If you don’t believe me, read the three advantages out of the hundreds there are to trust me when I say this concept will take over the way we store data and utilise it.

  • Security

The first significant benefit of doing your accounts by using this software is the security it will provide you. It is often assumed that any information that is on the web can easily be accessed by anyone who looks for it and loves the feel of it. But that is not the case.

Cloud computing provides better security than conventional methods. On top of this, the companies have the option of strengthening security by adding resources that only focus on the same.

  • Efficiency

Cloud computing improves both the efficiency of work and the productivity of the worker.

For instance,

Two employees sitting in different departments are working on the same project. So they would need the same files and information to do their job. Through cloud computing rather than waiting for one employee to finish up his work, both can access the same information at the same time and work faster and better.

  • Affordability

The last enticement of using cloud computing in accounting is the fact that it saves an organisation a ton of money.

It is because cloud computing does not need too much infrastructure for its usage, with almost negligible installation costs. It can even be used remotely from a different location and thus help in reducing the manpower costs as well.

For an organisation, just three advantages are compelling enough to make them switch from the traditional to the modern-day medium of accounting.

Winding Up

Technology has grown so much in recent times that it can help a person do things he never deemed possible could happen.

Handling money affairs with technology seemed too good to be accurate, but it has become a reality today, the fact that people have become accustomed to.

And it is not just handling finances that can be done through technological advancements; today, people and even business can acquire finance using the same as well.

In the past, loans for bad credit with no guarantor could only be procured by physically being present with the lender. Yet, today the same can be taken through online avenues without any complications faced in the past.

It is how high technology is. It helps you get money, use money, and ensures that you use it wisely.