Technology has become the driver changing the way companies exist and operate. The next generation of the workforce will be accustomed to operating in a completely technologically connected world with trusted relationships shaped by social platforms and social networking. Our economic environment has become one with diminished geographical boundaries. Increasingly, clients and customers are more focused on the caliber and quality of the work being performed- not on where it is being performed.
Accounting departments are not immune to these changes, and businesses must reassess their accounting departments to adapt to these trends.
1. Cloud Computing- Also termed software as a service, (SaaS), cloud computing is a new way of providing companies with software programs, allowing users to access the programs over the internet as opposed to having to load the software on an individual hard drive or central server. Emerging cloud and mobile technologies provide companies with increasingly more flexible options and 24/7 access to accounting data. In addition, cloud computing technologies have eliminated the problematic issue of single user systems that house accounting data on a single computer, allowing multiple user access. These technologies also eliminate the need to invest heavily in IT systems and staff thereby increasing profitability. With cloud computing programs, resolution of accounting system IT issues, data security and back-up often reside with the software developer taking the responsibility off of small to mid-sized businesses.
2. Outsourcing- This practice is becoming more and more prevalent across industries and is particularly beneficial to small to mid-sized companies. It provides a greater range of access to specific skill sets that may not be required or affordable on a fulltime basis. Outsourcing specific non-core tasks such as bookkeeping allow businesses to scale back services when they are not required or ramp up services during peak periods. Outsourcing functions such as CFO level services provide businesses with a high level expertise when they need it, expertise which may otherwise be in accessible or unaffordable if they needed to hire a full-time employee.
3. Virtual Office- Geographical boundaries are slowly being erased. It is now significantly less important where a company or its employees reside. This provides increased access to qualified accounting staff with a specific skill set, as they no longer need to be physically present in an office or even in a designated city or state to successfully accomplish accounting functions. This also reduces significant overhead expenses as office space to house staff is no longer essential to performing accounting and bookkeeping tasks. Tasks can be performed anytime, anywhere.
4. Self Service- Our world is becoming increasingly reliant on self-service as a result of technology. Today’s workforce is accustomed to 24/7 immediate access to information and the ability to quickly address tasks. Accounting departments must realize that monthly revenue and profitability reports are no longer sufficient. They must mobilize to offer real time access to live data so that decisions impacting the company can be made promptly and efficiently, by key decision makers with accessibility to this information.
5. Automation and Integration- Accounting departments must look to automate key business processes such as order entries and expense approvals to increase efficiency. This eliminates duplication of data entry and human error resulting in improved profitability. In addition, with access to more and more software programs companies must learn to integrate applications for accounting, CRM, e-commerce, payroll and POS so that they possess an all-inclusive snapshot of the company's financial status. Companies that learn to effectively integrate, manage and analyze this data will be far better equipped to move swiftly and decisively on critical matters that impact their business.
Businesses must embrace these trends that impact their accounting department to remain competitive. We are currently offering a free analysis of your accounting business processes and accounting system. If you would like to learn more on how Analytix Solutions can help improve your profitability, please call directly at 781.503.9004 or email at sales@aixsol.com.
Thursday, December 8, 2011
Wednesday, December 7, 2011
Cloud Computing: Transforming the face of Accounting
Cloud computing allows sharing of computing resources over the Internet. Information is stored in the cloud, remotely, instead of on a physical hard drive or server. Once implemented, employees no longer need to work inside the office; they can access information from remote locations as well, if they are connected through the Internet. They can also work as a team without being physically present at one location.
It is a new model of software service delivery that uses the Internet as a network to exchange information. In practice, cloud computing is all about services and not products, delivered over the Internet network. The advantage of the cloud is that it allows for centralized sharing of services, which in turn results in faster deployment of software, in turn leading to significant time and cost savings for business owners.
Cloud computing has already taken business management by storm; it is likely many companies are using some form of the cloud unknowingly, in the form of private networks.
Accounting and Cloud Computing
Accounting is seen as a traditional discipline where implementing cloud computing may seem like a distant dream. However, the reality is that accounting is already being touched by cloud computing.
There are many practical considerations that encourage the adaptation of the cloud for accounting purposes:
- Cloud computing results in scalable solutions.
- Cloud solutions can take off without a large capital or investment; provides better returns on investment.
- Reduces costs and time efforts in researching, establishing, and maintaining applications.
- Cloud solutions allow the system to be updated regularly.
- Cloud solutions result in increased adaptability of the system so that any new changes are reflected automatically and also initialized effectively.
All of these converge onto one truth: the cloud speeds up your accounting processes and helps make them much more accurate and error-free. This means your other equally vital functions, such as that of sales, can take up the majority of attention needed.
Further, integrating cloud computing into your existing systems is relatively easier. This is because it has application program interfaces that allow for seamless merging with existing or new systems. You can build up or strengthen existing applications on the same platform.
This also has significance for the small and medium-size business owners. They can outsource the entire function of accounting over the cloud with a host of benefits, including immense cost and time savings. The implementation of cloud is dependent on the vendor, hence, for a small or medium business, conducting accounting business over the cloud makes immense sense. Once you entrust the responsibility to a vendor, it is also the vendor who supplies interim IT and other support as required. So you save up significantly on infrastructure as well as on manpower hiring, training, and retention costs.
Security concerns are also easier to handle within a cloud. Since a single vendor is responsible for the system end-to-end, the vendor takes full responsibility for the application. You do not need to deploy several different security applications to take care of your data and information.
Further, the adaptability that is inherent within cloud systems ensures that the regulatory changes accounting is subject to get absorbed easily. Most of the current software is unable to adapt rapidly to changes and requirements that are the catchwords today.
Another big advantage of cloud computing for the small or medium sized business is that one can begin harvesting benefits without the need to invest a large amount of money or capital in the beginning: a fact that holds a big promise for small and mid-sized businesses.
It is a new model of software service delivery that uses the Internet as a network to exchange information. In practice, cloud computing is all about services and not products, delivered over the Internet network. The advantage of the cloud is that it allows for centralized sharing of services, which in turn results in faster deployment of software, in turn leading to significant time and cost savings for business owners.
Cloud computing has already taken business management by storm; it is likely many companies are using some form of the cloud unknowingly, in the form of private networks.
Accounting and Cloud Computing
Accounting is seen as a traditional discipline where implementing cloud computing may seem like a distant dream. However, the reality is that accounting is already being touched by cloud computing.
There are many practical considerations that encourage the adaptation of the cloud for accounting purposes:
- Cloud computing results in scalable solutions.
- Cloud solutions can take off without a large capital or investment; provides better returns on investment.
- Reduces costs and time efforts in researching, establishing, and maintaining applications.
- Cloud solutions allow the system to be updated regularly.
- Cloud solutions result in increased adaptability of the system so that any new changes are reflected automatically and also initialized effectively.
All of these converge onto one truth: the cloud speeds up your accounting processes and helps make them much more accurate and error-free. This means your other equally vital functions, such as that of sales, can take up the majority of attention needed.
Further, integrating cloud computing into your existing systems is relatively easier. This is because it has application program interfaces that allow for seamless merging with existing or new systems. You can build up or strengthen existing applications on the same platform.
This also has significance for the small and medium-size business owners. They can outsource the entire function of accounting over the cloud with a host of benefits, including immense cost and time savings. The implementation of cloud is dependent on the vendor, hence, for a small or medium business, conducting accounting business over the cloud makes immense sense. Once you entrust the responsibility to a vendor, it is also the vendor who supplies interim IT and other support as required. So you save up significantly on infrastructure as well as on manpower hiring, training, and retention costs.
Security concerns are also easier to handle within a cloud. Since a single vendor is responsible for the system end-to-end, the vendor takes full responsibility for the application. You do not need to deploy several different security applications to take care of your data and information.
Further, the adaptability that is inherent within cloud systems ensures that the regulatory changes accounting is subject to get absorbed easily. Most of the current software is unable to adapt rapidly to changes and requirements that are the catchwords today.
Another big advantage of cloud computing for the small or medium sized business is that one can begin harvesting benefits without the need to invest a large amount of money or capital in the beginning: a fact that holds a big promise for small and mid-sized businesses.
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