From Traditional to Modern: New Accounting Practices

Implementing New Accounting Practices Without Disrupting Your Business.

As an accounting firm, it's essential to keep up with modern accounting practices to provide the best possible service to your clients. However, transitioning from traditional accounting practices to modern practices can be challenging.

Accounting firms may struggle with identifying areas where modern accounting practices and new technologies could be beneficial, communicating changes to their team, and providing the necessary training to ensure a smooth transition. Additionally, staying up-to-date with the latest accounting technology and trying to understand them can be time-consuming and overwhelming.

In this post, we will discuss how accounting firms can implement new accounting practices without disrupting their business.

Traditional vs. Modern Accounting Practices

The benefits of modern accounting practices are clear: they can save time, reduce errors, and help accounting firms provide more valuable insights to their clients. One of the key ways that modern accounting practices achieve these benefits is through the use of cloud-based accounting software. According to a study by Accenture, cloud-based accounting software can reduce the time spent on data entry by up to 80%. This means that accountants can spend less time on administrative tasks and more time on providing strategic advice to their clients.

In addition to saving time, modern accounting practices can also improve client relationships. A survey conducted by Sage found that 82% of accountants believe that the use of technology has made their job easier, while 56% said that it has helped them to improve client relationships. By using modern accounting software, accounting firms can provide their clients with real-time financial insights and respond quickly to their needs, building trust and improving their overall experience.

Of course, a more efficient workflow also means an improved accounting firm's bottom line. Accounting Today has found that accounting firms that use cloud-based software see an average of 15% growth in revenue per year. This growth can be attributed to several factors, including increased efficiency, better client service, and the ability to offer new value-added services. By adopting modern accounting practices, many accounting firms have positioned themselves for long-term success in a rapidly changing industry.

Assessing Your Firm’s Current Accounting Practices

To implement modern accounting practices, you first need to assess your current practices. Take a close look at your firm's financial records and ask yourself the following questions:

• Are you using manual methods for data entry and record keeping?
• How much time do you spend on accounting tasks?
• Are your records accurate and up-to-date?
• Are you using any software or technology to assist with accounting tasks?
• Are your employees familiar with technology in general?
• Have your team requested software updates or workflow automation?

With these questions, you might identify areas where modern accounting practices could be beneficial. For example, if you are still manually entering data into spreadsheets, it may be time to invest in accounting software that automates this process. If your accounting team is already requesting new technology it’s probable that they have identified these opportunities for improvement before you. Listen to them.

Best Practices for Maintaining Modern Accounting Practices

As businesses continue to grow and evolve, it's essential to maintain modern accounting practices to ensure financial accuracy and efficiency. Here are three best practices that accounting firms can implement to stay on top of their game:

• Regular software updates: Modern accounting software requires regular updates to ensure the software is functioning correctly, fix bugs, and address security concerns. This also enables taking advantage of the latest features and improvements.
• Automate data entry: Manually entering data is definitely time-consuming and increases the likelihood of errors. Automating some entry data workflows can save time and provide high-quality financial insights to clients.
• Embrace the cloud: Cloud-based accounting software offers real-time financial insights, secure data storage, and remote access to financial data. By embracing the cloud, accounting firms can streamline their operations, reduce the need for on-premises infrastructure, and improve collaboration with clients.

It's also essential to stay informed about the latest trends and developments in the industry. Attending industry conferences and workshops, participating in professional development programs, and staying up-to-date on industry news can all help accounting firms stay ahead of the curve.

Elevating Your Accounting Game

Adopting modern accounting practices is no longer a luxury but a necessity in today's fast-paced business environment. Despite the challenges of transitioning, accounting firms must take a strategic approach to stay competitive and provide top-notch services to their clients.

The accounting industry is evolving rapidly, and the future belongs to those who can adapt to change and embrace innovation. By investing in modern accounting practices, your accounting firm can not only survive but thrive in today's competitive landscape. So take action today and start implementing these best practices to elevate your accounting game to the next level!

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Kevin Mitchell, CPA

Senior Manager and CPA with over 20 years of experience in accounting and financial services, specializing in risk management and regulatory compliance. Skilled in managing audits and leading teams to deliver exceptional services. Proud father of two.

🔗 Kevin Mitchell | LinkedIn

References:

Accenture | Let There Be Change. (n.d.). Accenture | Let There Be Change. https://www.accenture.com/_acnmedia/PDF-80/Accenture-Cloud-Based-Accounting.pdf

Accounting Today. (2018, June 20). Cloud-based accounting sees 15 percent revenue growth for firms. Accounting Today. https://www.accountingtoday.com/news/cloud-based-accounting-sees-15-percent-revenue-growth-for-firms

De Wet, J. (2017, February 15). Technology making accountants' jobs easier and more valuable. Accounting Today. https://www.accountingtoday.com/news/technology-making-accountants-jobs-easier-and-more-valuable