The previous year has changed the landscape of how we do business.  Some may say that the changes were not great because of the unexpected and negative turn of events because of the COVID-19 pandemic.  However, this period has also given us upsurge in science and technological advancements - from the fast-paced vaccine formulation, to remote working technologies, and up to automated accounting. 

Yes, these technologies have jolted even the accounting industries.  We have seen improvements on how we do accounting for both small and large firms.  And because the industry is rapidly moving, everyone has to be on board and catch up.  Here are the accounting tips for 2021, that you and your organization can benefit from:

1. Subscribe to a cloud-based accounting

The cloud is becoming a popular platform for accounting services.  This is so because of the significant benefits that one can get for being on the cloud.  Cloud-based accounting means firms have access to their financial system anytime and from anywhere. It promotes collaborative working because the data access is not limited, and thus enabling team members to share, edit, and copy. It also means that firms can now easily track its expenses, sales, and inventory.

Added to that, a cloud -based accounting is simple to maintain because cloud service providers take on the responsibility for system upgrades and deployment.  It also enables a realistic budget planning because subscription to a cloud service is not a capital expense, as it falls under operational and will only be acquired when needed.

2. Use of office automation software

Regular, repetitive tasks and decision-making activities can be simplified, improved, and sped up with accounting office automation software. Information can be updated and can go through the accounting system with little human intervention.  Automation does not mean replacing people with machines, but is an aid to eliminate or minimize errors.  In addition, slow-moving processes are lessened letting staff to achieve higher levels of productivity. 

A few of the popular accounting software are:

•      • QuickBooks
•      • Xero
•      • FreeAgent
•      • Sage Business Cloud Accounting
•      • Gusto

3. Digital document management solutions

An efficient digital document management solution permits an organization to prepare for reports and audits with total control.   With these tools, it is simple to pull together relevant information and deliver it to different channels.  It will reduce the time needed to search for financial data and audit trails during internal and external audit activities.  There are several document management tools available that will fit in to any firm's need and budget.  Here are some examples:

•      • AccountantsWorld Cloud Cabinet
•      • Doc.It
•      • Drake Documents
•      • CCH ProSystem fx Document
•      • eFileCabinet
•      • ONVIO Documents
•      • Sharefile
•      • SmartVault

4. Implement strict information security

Accounting systems contain information that is important and confidential, which needs to be kept safe at all times.  Unauthorized access can lead to devastating results for any firm.  From identity theft to loss of important data, all these risks have to be managed.  Here are some forms to consider:

•      • Physical security–install locks and limit access
•      • Authentication–set up systems log-ins and password authentication
•      • Virus protection–use of anti-virus software and firewalls
•      • Back -up–perform regular back-up and restoration of back-ups

Well, these are a few accounting tips that we are definitely going to see progress in 2021.  We can say that the pandemic has pushed these trends to move rapidly, bringing also quick revolution on how we do business.  Small and large firms alike must be able to cope up with these developments in order to stay successful.

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