TECHNOLOGY IN FINANCE AND ACCOUNTING

1. TECHNOLOGY IN FINANCE AND ACCOUNTING Businesses are growing rapidly today. Every business organization has different needs as well as goals. The recent spurt in digitalization in the past decade has created many opportunities for business organizations. These opportunities come in the form of various software and digital tools. These software help the organization to meet their numerous needs. Using software for finance and accounting is very useful to business organizations. They do the work of book-keeping and manage the finance digitally. Here are a few examples of software for accounting and finance-  Plooto  Bill.com  Tipalti  NetSuite ERP  AvidXchange  Rossum  Yooz  DocuPhase,etc. ADVANTAGES You gain many advantages by using such software for accounting and finance, such as – Accuracy- Digitalizing your accounting operations greatly reduces the chance of errors in your business. Humans are prone to errors, machines are much less, comparatively. You can also maintain an accurate record of your financial transactions using such software. In addition to this, it is easy to track your progress through such applications. Tax Compliance- Most software for accounting and finance have in-built systems to comply with the tax regulations. This makes your job easier as you don’t have to worry about breaking tax laws. The software will take care of it. It will ensure your business transactions are coherent with the tax laws of the region. Productivity- Software for accounting and finance helps in improving the overall productivity. You will start working smart instead of working hard. The accounting system takes care of many activities of the organization making time for you to handle other tasks. Moreover, improved accuracy will ultimately lead to an increase in productivity.

2. Helps you get Insights- Your accounting software can help you gain valuable information. If set up properly, the software can keep track of all transactions of the organizations. This will help you get a good view of the financial picture of your enterprise. Customized Software- This is probably the best advantage of using software for finance and accounting. Every business is different with different needs and objectives. Today, you can get software that’s specially customized according to your business. You can ask the developer of the software to customize it based on your objectives and organize it the way you like it. DISADVANTAGES But there are certain disadvantages of using such software as well- Cost- The cost of installing such software is high if compared to its alternative of a paper-back system. Though, it is low if you compare it with your other costs. Implementation- You need to implement the software properly in your system to get all its benefits. It is therefore somewhat hard to implement. Manual accounting is easier to install into your business. Learning Time- It takes some time for you and your staff to learn and adapt to the software. For new people who are not adept at handling such systems, it would take some time to learn the software. CONCLUSION Technology has branched itself to almost everything in the world in the present day. It has its clutches on finance and accounting as well. Accounting software developing companies are trying to improve their tools to better address the needs of businesses. As more time goes on, the software will become more user-friendly and cost-effective. This will help even smaller businesses to induce such finance and accounting software in them.