How The Accounting Industry Is Being Changed By Cloud Computing

 The Accounting Industry

The market for accounting and tax services are in quandary primarily because customers are gearing towards bookkeeping services which are less costly and that big accountancy firms are pushing other players out of the high-priced market. However, all is not lost. Accountants must see it as a challenge. With the current financial difficulties everyone is facing, accountants can offer more value-for-money services to small and medium-sized enterprises. Instead of the yearly client discussions, accountants must be prepared to offer interactive services in order to meet the requirements of these SMES who are bracing themselves for another difficult year.

Cloud computing is slowly transforming the accounting industry by offering to streamline accounting processes in order to cut costs and adopt services which add value in a subscription-based scheme. Such services can include tax planning, profitability advices, cash flow forecasts, and real-time approach to scanned invoices. With software-as-a-service, accountants will be able to deliver services in more innovative way.

Accountants must be able to view cloud computing as a big opportunity for them to step up and take the lead in empowering a new phase of business insight in order to understand that they can change the SME’s performance. However, this shift is not an easy one because it will also entail a change in culture and attitude. Accountants do not just adopt cloud computing but must also incorporate a new approach in working which will minimize administrative processes which are repetitive and which will eventually free up gifted individuals so that they can share their knowledge and expertise with the market.

An important part of the cloud computing solution is the integration of document scanning. Invoices can be instantly scanned and posted automatically to the accounting system after which the accountant can check and confirm the entry. Through scanning invoices, cost of processing goes down because the invoices can be scanned in bulk or by every client on their end. Through cloud computing, accounting firms can now compete with those offering low cost bookkeeping services.

By encouraging each client to scan invoices daily, an accountant can have timely information which can be used to provide additional value added services. This powerful capability to offer real time intuitiveness is a welcome service to SMEs. Clients can just log into the accounting firm’s portal to find out how their businesses are performing. They can also asses the currency fluctuation’s impact or track cash flow which is helpful in providing confidence in clients’ business decisions. Accountants can offer new services like business analysis or cash flow forecasting in order to offer an in-depth financial expertise which SMEs will find essential in maintaining or growing their businesses.

Cloud computing is a tool every accountant can take advantage as a leveraging tool so that he/she can retain his/her clients without necessarily slashing his/her fees. With the new technology, an accountant can provide timely reports and advices to SMEs so that they can still be in business. He/she can provide real time perspective to the client’s profitability by undertaking cost analysis and delivering advices on business expansion or transformation. These types of services are highly demanded by customers who need to make difficult decisions. The practice of reviewing the business’s performance has become irrelevant and outdated with cloud computing.

Financial software offered in cloud computing technology provides an opportunity to change and enhance accountant-client relationship. Taking advantage of software-as-a-service, an accounting firm need not invest heavily on server infrastructure or internal IT personnel because most of these cloud computing services are on subscriptions. Monthly subscriptions are also very low to encourage accountants to take advantage of the innovative business model. By reducing IT costs and making information available 24/7 online, the accounting firm’s cash flow is greatly improved.

Although accountants are still generating income despite the current financial situation, the changing market and the clients’ pressure push them to think of innovative ways to maintain their clients because there are bookkeepers who offer their services low and there are also huge accounting firms who are also moving to capture the mid market. Accountants must wake up to realize that the current movements in the accountancy arena have serious implications and that there is a need to make the big leap to change to the new cost base and business model.

By Glenn Blake

About Glenn Blake

Glenn Blake is a writer for CloudTweaks and has been writing about technology trends for over 25 years.

Find out more
View All Articles

Sorry, comments are closed for this post.

Comic
Using Cloud Technology In The Education Industry

Using Cloud Technology In The Education Industry

Education Tech and the Cloud Arguably one of society’s most important functions, teaching can still seem antiquated at times. Many schools still function similarly to how they did five or 10 years ago, which is surprising considering the amount of technical innovation we’ve seen in the past decade. Education is an industry ripe for innovation…

5% Of Companies Have Embraced The Digital Innovation Fostered By Cloud Computing

5% Of Companies Have Embraced The Digital Innovation Fostered By Cloud Computing

Embracing The Cloud We love the stories of big complacent industry leaders having their positions sledge hammered by nimble cloud-based competitors. Saleforce.com chews up Oracle’s CRM business. Airbnb has a bigger market cap than Marriott. Amazon crushes Walmart (and pretty much every other retailer). We say: “How could they have not seen this coming?” But, more…

What Futuristic Tech Will You See In Your Lifetime?

What Futuristic Tech Will You See In Your Lifetime?

Futuristic Tech The world and what people can do is increasingly being driven by technology. It has already shaped the world we live in, but over the next few decades it is set to shape the world in ways that we can barely imagine. There have already been some great leaps in IoT technology recently,…

The Lighter Side Of The Cloud – Hiding Spots

The Lighter Side Of The Cloud – Hiding Spots

By David Fletcher Please feel free to share our comics via social media networks such as Twitter, Facebook, LinkedIn, Instagram, Pinterest. Clear attribution (Twitter example: via@cloudtweaks) to our original comic sources is greatly appreciated.

Recent Articles - Posted by
Fintech Exploiting AI and Blockchain Technology

Fintech Exploiting AI and Blockchain Technology

AI and Blockchain Technology The field of artificial intelligence (AI) had progressed rapidly in the last ten years, though first recognized in the 1950s. From autonomous motor vehicles to digital personal assistants, the technology is making its way into a variety of industries, enabling better task automation, language processing, and data analytics. But more recently,…

The Fully Aware, Hybrid-Cloud Approach

The Fully Aware, Hybrid-Cloud Approach

Hybrid-Cloud Approach For over 20 years, organizations have been attempting to secure their networks and protect their data. However, have any of their efforts really improved security? Today we hear journalists and industry experts talk about the erosion of the perimeter. Some say it’s squishy, others say it’s spongy, and yet another claims it crunchy.…

Protecting Devices From Data Breach: Identity of Things (IDoT)

Protecting Devices From Data Breach: Identity of Things (IDoT)

How to Identify and Authenticate in the Expanding IoT Ecosystem It is a necessity to protect IoT devices and their associated data. As the IoT ecosystem continues to expand, the need to create an identity to newly-connected things is becoming increasingly crucial. These ‘things’ can include anything from basic sensors and gateways to industrial controls…

The Cancer Moonshot: Collaboration Is Key

The Cancer Moonshot: Collaboration Is Key

Cancer Moonshot In his final State of the Union address in January 2016, President Obama announced a new American “moonshot” effort: finding a cure for cancer. The term “moonshot” comes from one of America’s greatest achievements, the moon landing. If the scientific community can achieve that kind of feat, then surely it can rally around…

Don’t Be Intimidated By Data Governance

Don’t Be Intimidated By Data Governance

Data Governance Data governance, the understanding of the raw data of an organization is an area IT departments have historically viewed as a lose-lose proposition. Not doing anything means organizations run the risk of data loss, data breaches and data anarchy – no control, no oversight – the Wild West with IT is just hoping…

Staying on Top of Your Infrastructure-as-a-Service Security Responsibilities

Staying on Top of Your Infrastructure-as-a-Service Security Responsibilities

Infrastructure-as-a-Service Security It’s no secret many organizations rely on popular cloud providers like Amazon and Microsoft for access to computing infrastructure. The many perks of cloud services, such as the ability to quickly scale resources without the upfront cost of buying physical servers, have helped build a multibillion-dollar cloud industry that continues to grow each…

Cloud Infographic – Cloud Public, Private & Hybrid Differences

Cloud Infographic – Cloud Public, Private & Hybrid Differences

Cloud Public, Private & Hybrid Differences Many people have heard of cloud computing. There is however a tremendous number of people who still cannot differentiate between Public, Private & Hybrid cloud offerings.  Here is an excellent infographic provided by the group at iWeb which goes into greater detail on this subject. Infographic source: iWeb

Cloud Computing Myths That SMBs Should Know

Cloud Computing Myths That SMBs Should Know

Cloud Computing and SMBs Cloud Computing is the hottest issue among IT intellects of Small and Medium Businesses (SMBs). Like any other computer-orientated technology, Cloud Computing has some misconceptions and myths that often kick-start arguments among the two opposing groups: Cloud Supporters and Cloud Opponents. Both of these groups have their own ideology and reasons…

Cloud Computing Price War Rages On

Cloud Computing Price War Rages On

Cloud Computing Price War There’s little question that the business world is a competitive place, but probably no area in business truly defines cutthroat quite like cloud computing. At the moment, we are witnessing a heated price war pitting some of the top cloud providers against each other, all in a big way to attract…

The Cloud Above Our Home

The Cloud Above Our Home

Our Home – Moving All Things Into The Cloud The promise of a smart home had excited the imagination of the movie makers long ago. If you have seen any TV shows in the nineties or before, the interpretation presented itself to us as a computerized personal assistant or a robot housekeeper. It was smart,…

Cloud Infographic – The Internet Of Things In 2020

Cloud Infographic – The Internet Of Things In 2020

The Internet Of Things In 2020 The growing interest in the Internet of Things is amongst us and there is much discussion. Attached is an archived but still relevant infographic by Intel which has produced a memorizing snapshot at how the number of connected devices have exploded since the birth of the Internet and PC.…

Cloud Computing Is Greener Than You Think

Cloud Computing Is Greener Than You Think

Cloud Computing Is Greener Than You Think Last week we touched upon how a project in Finland had blended two of the world’s most important industries, cloud computing and green technology, to produce a data centre that used nearby sea water to both cool their servers and heat local homes.  Despite such positive environmental projects, there…