Every aspect of the business has been affected by technological advancements. The decade leading up to 2020 provided record-breaking changes in the way business is done around the world.
While the accounting department doesn’t always get the credit it deserves, it is the heart of every business. Properly managing the profits of a business is critically important for success.
As a Chief Financial Officer (CFO), the management of the accounting department is your sole function.
More than just a mere bean counter, CFOs now have the task of being able to keep up with the technological trends that pertain to their duties as the leader of the accounting department.
Here, we will highlight the five tools that CFO should be aware of leading up to 2020.
- Cloud Accounting
Cloud collaboration is a method used to co-author computer files using networking platforms that show all changes made to files in real-time.
This method makes it possible for multiple individuals to work on the same project and files remotely. Cloud accounting operates in this same manner.
Cloud accounting is facilitated by the use of online-based accounting software. All accounting data is safely stored within the online (or cloud) platform.
This makes real-time accounting data accessible to all team members with access to the platform. This allows for the streamlining and automation of accounting practices that would require manual effort.
Blockchain is an accounting technology that was originally developed as a way to encrypt online transactions.
With the desire for an increase in security for businesses that are often targets of cybercrime, blockchain technology is a technology that is only just beginning to make its way into the world of accounting for small businesses.
Blockchain is synonymous with Bitcoin since it was integral in the development of the cryptocurrency.
However, the implications of blockchain to advance security in online accounting cannot be overstated. The high level of encryption makes blockchain extremely difficult and expensive to hack.
- Mass Payment Processing
Every CFO knows the importance of keeping up with monthly payment obligations. Making sure that the bills stay paid is a key function of the accounting department.
In an era where things are being made convenient through automation, there is a solution that relieves accountants from the mundane task of making monthly bill payments manually.
A mass payment system is designed to take the burden of writing checks and sending payments out monthly.
These systems are capable of automating the process of making all of the monthly bill payments and keeping an accurate recording of the payments for the accounting department’s bookkeeping measures.
- Automated Accounting Processes
With the growing demand of consumers and the marketplace as a whole, and the ever-increasing complexity of regulatory statutes, it is crucial for CFOs to explore methods that will reduce overhead and increase efficiency.
With the volume of transactions skyrocketing to record highs, the need for systems that can ease the pressure and offer satisfactory solutions is very real.
The use of automated accounting processes improves the dependability, accuracy, and speed of processing high-volume accounting activities.
These systems are designed by programming rules-based certifications in conjunction with matching workflows to automate and optimize predetermined accounting tasks.
- Big Data
Big data is the title given to the collection of massive datasets that are gathered for analysis. The data is consistently gathered and categorized in a way that makes data analysis simpler.
While the data collected has different uses for various departments in a company, this data plays a specific role in the accounting department.
Big data gives accountants the ability to harvest valuable insights that aid in the early detection of fraud, the efficiency of tax preparation, and let accountants identify patterns and anomalies that they may have previously overlooked.
The increase in accessibility of big data is a significant benefit to CFOs.
Technology has been good to the world of accounting in recent years. Much of the work that was done using sheer manpower and brainpower are done using the power of technology.
CFOs are often cerebral individuals that rely on routines and habits to achieve reliable and predictable results. This means that sometimes they are resistant to making major changes to the protocol.
The tools outlined here are designed to make your accounting department work more efficiently.
Welcoming the benefits that are granted by these tools will both lighten the load on your staff and free up their time to take on more important tasks.