Accounting Digital Transformation

Digital transformation is completely reshaping the accounting industry. If done right, accounting digital transformation can potentially save you a great deal of time, money, and hassle.

But what exactly is digital transformation? Which technologies does it cover? What are the benefits, and how can you get the support you need to make it happen?

Find out below…

Introduction to Digital Transformation in Accounting

At its simplest, digital transformation is implementing digital technologies across your processes, services and strategies to drive fundamental change.

By nature, accounting is an industry that is systematic and process-driven at its core. This means that it’s the perfect sector for digital transformation, helping to make the way you work more efficient and seamless.

There are all sorts of digital tools that can be applied to the accounting sector. Cloud accounting services, big data, automated invoicing solutions, and pre-population programmes are just a few of the solutions that accounting firms are using to streamline processes, improve accuracy, and serve their clients better.

Key Technologies Driving Accounting Digital Transformation

Various technologies are driving accounting digital transformation, with some of the key ones being:

• Cloud computing. Here, computing services – such as servers, networking, storage, databases, software and analytics – are delivered via the Internet (the “cloud”) rather than having to install and maintain them yourself.
• Artificial intelligence. Essentially, the science of creating machines that can think and perform like humans, AI, is still in its infancy. However, it is already being used in business settings for things like outbound email campaigns, lead scoring and performing repetitive tasks like reconciling accounts.
• Data analytics. This is the collection and conversion of data into actionable insights. It can help you make conclusions, improve decision-making, make predictions, and shape business processes.
• Internet of Things. The Internet of Things (IoT) is a connected network of devices that can communicate between each other and the cloud. In accounting digital transformation terms, it includes data visualisation tools and cloud-based accounting software, which can provide automation of certain processes and offer valuable insights.

Advantages of Digital Transformation for Accountants

Accounting digital transformation brings with it a wide range of benefits, including:

• Improved efficiency and accuracy. Accounting digital transformation can make a wide variety of processes more efficient and more accurate. Digital tools can save time by reducing the need to do things manually – and can improve accuracy by reducing the likelihood of human error.
• Scalability. By using technology to take on certain aspects of the role, you may be able to take on more work without needing to increase the size of your team or the amount of office space you need.
• Better security. Cloud-based tools are designed to have security at their core. Because of their nature, they need to be safe to use – and keep user data safe, too. We would always recommend researching tools thoroughly before you commit to them. Still, you’ll often find that they’ll include impressive built-in data security and protection capabilities to keep you compliant – and often anti-malware, anti-ransomware and anti-virus tools, too.
• Enhanced client services. In today’s digital era, clients want round-the-clock access to services, not just 9-5 coverage. By adopting more digital tools, you can improve their satisfaction by giving them access to digital channels that can provide them with support and allow them to complete forms and sign documents at whatever time they choose.

But where can you access the best accounting digital transformation tools for your needs?

Why Join ICPA for Digital Transformation Support

At ICPA, we can provide you with the support and resources you need to bring digital transformation to the fore in your accountancy firm. Our membership benefits include our advice lines, which cover a wealth of topics, as well as money laundering compliance software, invitations to events and webinars on topics that include digital transformation, and impressive discounts on leading industry tools, software and services.

FAQs on Accounting Digital Transformation:

If you still have questions about accounting digital transformation, take a look at our FAQs below – or get in touch for further support.

What is Accounting Digital Transformation?

Accounting digital transformation is the implementation of digital technologies across your processes, services and strategies to drive fundamental change.

Why is Digital Transformation important for modern accountants?

As with many industries, accounting continues to become more and more digital. Clients expect a faster, more personalised level of service. If you fail to focus on digital transformation, you may find that you fall behind your competitors.

What are the key technologies involved in Accounting Digital Transformation?

There are many technologies involved in accounting digital transformation, including cloud computing, artificial intelligence (AI), data analytics and the Internet of Things (IoT).

How can digital transformation improve client services in accounting?

Digital transformation can help you give your clients round-the-clock access to various tools, data and services, meaning that they can handle their accounts at times that suit them. Cloud computing means they can access the documents and information they need from anywhere in the world, giving them complete control.

What are the first steps towards digital transformation for an accounting firm?

Your first step is to identify your objectives. What are you trying to achieve with digital transformation – is it improving the client experience, streamlining processes or something else? Once you have defined your objectives, you can focus on how you can meet them, getting everyone in the team on board and choosing the technology that will help you to meet these goals.

How does digital transformation impact data security in accounting?

As more data is moved to the cloud, the risk of security breaches increases. As an accountancy firm, you are responsible for keeping your client’s data secure.

As a result, you’ll need to ensure that your whole team is briefed on data security best practices and that your own internal data security is solid. When choosing external technology providers, check their security credentials before signing on the dotted line.

Can small accounting firms also benefit from digital transformation?

Absolutely. By streamlining your processes and implementing data-driven strategies for everything from marketing to client contact, you can save time and money and drive future growth.

How does digital transformation affect compliance and regulatory reporting?

There are certainly challenges when it comes to digital transformation, compliance and regulatory reporting, which is why you need to conduct regular audits, implement a solid data protection policy, check your supply chain regularly and keep abreast of regulatory changes.

However, digital transformation can also help you to become more compliant. As the world embraces digital adoption further, you’ll find that compliance and digital transformation will work hand in hand.

What are the cost implications of digital transformation for accounting firms?

The costs of digital transformation will vary depending on what you are looking to achieve. These costs could include the purchase of new software, licences or technology, as well as training for your team. There could also be further costs associated with things like data migration if needed.

How does digital transformation facilitate remote work in accounting?

By using cloud-based accounting software, you, your team and your clients can access data from anywhere in the world, and can collaborate on documents in real-time. This makes keeping track of work done, document signatures, and any changes easier when your team – and your client base – are spread out geographically rather than working from a single location.