Why Small Businesses Need To Transform Paper Receipts To Digital Data

Long gone are the days when one only had paper and pen to keep records of information. Computers and digital data have dramatically transformed how people work and live, and even decades after the commercialization of the first computer, its potential still seems endless. In the business world where innovations to improve productivity are always welcomed, the role of computers in storing and processing information is indispensable. 

Digital technologies are increasingly replacing traditional manual processes and becoming the key to success in today’s business world. 

The recent pandemic made this urge to transform digitally even greater, as it is a matter of survival for a business to cut down on expenses while aiming to grow. The switch to digitization is urgent, but before adopting any new tool, we have to consider its advantages as well as possible drawbacks. 

For small companies who want to embrace scanning and receipt tracking software to get rid of their paper receipts, our explanation of the pros and cons in this article will help you decide if your business will take the next step and digitize its documents.

What is digital data?

According to Techopedia, digital data is a binary format of information that can be interpreted by various technologies. In a binary system, complex audio, video, or text information is turned into a series of binary characters, ones, and zeros, or “on” and “off” values.

As computers can only work with digital information, we need input devices to “translate” the data into a language that computers can understand. For example, a scanner or a camera converts an image into pixels (small squares of color that are signaled by a sequence of numbers), so that visual information becomes digitized images that we can see on a computer screen. 

What is good about digitizing your receipts?

Although a scanner is a must-have item in any company, scanning apps or software aren’t as commonplace. However, the idea that you can scan all your bills and other kinds of documents with just a smartphone is tempting. Much like an ordinary scanner, scanning software turns your paper into a digital copy, but that is not all it has to offer. 

There are a lot of apps that also help you to organize your receipts, track expenses, and even create reports. If you are still wondering why you should choose a scanning app for your business’s digitalization, here are some of the benefits.

  • Cost-saving and time-saving

From a financial perspective, switching to digital receipts is undoubtedly cost-effective. Conventional physical documents require various expenses from the users, ranging from paper and ink to printers and scanners. Businesses need to track their operation based on various kinds of documents, so there are storage costs and added unnecessary expenditures. 

Imagine that all your important papers are now digital data safely kept in your computer or the cloud with the support of scanning software. There are several free apps that you can try; or you can purchase one for more useful features, such as linking to your accounting system and customizing your financial reports.

On top of that, working with digital data is quicker than you expect. If you are an accountant or a bookkeeper, you should know better than anyone the time-consuming task of categorizing receipts, inputting data, and then extracting information from them. Don’t waste your energy doing everything manually now that you have apps and software to assist you. Let these digital tools take care of your receipts and spend more time on the essential tasks which will lead to increased profit for your business!

One significant advantage of a scanning app is that you can use it at almost anytime and anywhere. Once the app is downloaded to your smartphone, you can easily scan receipts on the go without waiting until returning to your office. 

  • Easy storage and access

Managing receipts and financial documents in an organized way for ease of tracking and retrieval is a real headache as your business transactions grow in number and scale. Soon you’ll realize you are surrounded by clutter and piles of folders that take up considerable space in your office. However, thanks to digitalization, you don’t need physical cabinets to store the documents or worry about them getting lost or fading. 

Both you and your customers can store digital receipts in your computer or on the cloud, which means easier access, and smoother record keeping and accounting. Receipt scanning software keeps your documents in a central location and helps your team stay on top of all the details even when working remotely.

  • Tax-ready

A recurring question whenever tax season draws near is: How do you know what expenses are deductible without having to sort through each receipt? Good scanning software can get your receipts into action in many ways. 

First, besides scanning, you can use it to add tax information and categorize the expenses accordingly, which makes tax preparation time a breeze. When every expense is precisely recorded, you will also be able to tell how many tax deductions you can claim. 

What’s more, many receipt scanning apps allow you to create financial reports based on the input data and export them into your accounting programs. This means you can minimize errors caused by carelessness, therefore maintaining the accuracy of all reports. 

Even if tax time is over, you’ll never know when the IRS may ask to review your receipts, and this is when scanned receipts and documents come in handy. Because the IRS accepts digital images, you can simply show them the data they need and get the paper copies off your desk! 

  • Increased interactivity with customers 

Another merit of electronic receipts worth mentioning is their marketing role. Email receipts are the perfect tool to promote your services by, for example, featuring links to your business website. Based on the customer transactional information collected through e-receipts, you can keep track of their purchasing habits, know their preferences, and send them personalized offers that match their needs. 

In addition, business owners can use the email list to gather customers’ feedback with surveys. Each receipt sent is an excellent opportunity not only to engage customers but also to improve your products or services. So it can be considered a bridge that brings the retailers and their customers closer together while transforming shopping into an interactive experience.

Disadvantages of digital receipts and documents

  • Technical knowledge required

Although you don’t need to be an expert to use the scanning software, some technical knowledge is necessary if you want to optimize all functions it is capable of. Those who are not used to working with digital data may find it hard to navigate to each receipt and end up using the software just like a normal scanner instead of fully exploiting its potential. 

If you haven’t bought one yet, help yourself by asking such questions as “What are you looking for in scanning software?” “How can you use its features to your benefit?” “What skills are required to make it work?” Digital transformation can’t happen overnight and certainly entails remarkable cultural changes in the office, so you should at least know what to prepare, including an understanding of the tools you are going to adopt. What is equally important is an open-minded attitude toward new things and the willingness to learn from mistakes in this process.

  • Security problems

Many people are concerned that digital data leaves information vulnerable to greater security risks. Keeping receipts and financial documents online doesn’t guarantee they are safe from hackers’ attacks or system failures. However unlikely such security issues may seem, the far-reaching consequences should be acknowledged and avoided at all costs. When someone compromises the system, the worst scenario may be loss of customer data, so it is advisable to backup everything in advance. 

Shoeboxed as a solution

Given both the pros and cons of switching to digital receipts, are you still opting for scanning software to accompany your office’s transformation? If you say ‘yes’ to innovations and challenges, let’s figure out how Shoeboxed can assist you with its amazing features.

  • Easy scanning with accurate data

Shoeboxed gives you multiple scanning options so that you can do it no matter where you are. After taking photos of your receipts, you can upload them to Shoeboxed software or its mobile app in just seconds. 

Whether you are at home or on a business trip, Shoeboxed makes a great companion that digitizes your receipts and tracks every expense on the move. Real-time reporting is possible so you’ll never have to worry about missing out on some bills.

At Shoeboxed, we also understand that there are important receipts that you want to keep as they are. In this case, or at a time when you wish to outsource your receipt scanning task, you can ask Shoeboxed to send you the postage-paid Magic Envelope, put all the items that you need us to scan inside, and mail it back to us. 

We also accept the electronic images of your receipts 24/7 and help you process to extract key data. With Shoeboxed, you know that you are provided with human-verified information which is easily searchable and editable in your digital system.

  • Improved security for both paper and digital receipts and documents

Keeping your physical and digital receipts secure is a promise that Shoeboxed is committed to our customers. We use Secure Socket Layer encryption for the upload process and do regular backups of your scanned data so you can rest assured that your private information is protected with utmost care. Also, access to the app is strictly controlled and you can decide who will have the right to retrieve or modify the data. 

The same attention to security is applied to storing your paper documents, which are safeguarded in our independently owned processing center with strong monitoring measures. For each receipt you entrust to us, Shoeboxed will do whatever it takes to deliver our best services.

  • Great compatibility with accounting programs

We are partners with several accounting platforms, such as QuickBooks, Xero, and Evernote, which means documents scanned with Shoeboxed can be synced onto these systems and ready for any report. You can also choose to auto-import receipts from your Gmail inbox into Shoeboxed account so you never lose another bill again. 

Forget the tedious manual data entry and get some burdens off your accountants’ shoulders, helping them to streamline the bookkeeping process. You’ll surprised at how the fine combination of a receipt scanner and an accounting program will speed up your workflow and help your financial management. 

  • Tax-friendly

Audits will no longer be a hassle if you have all necessary documents at hand. One perk of Shoeboxed is that it offers clearly scanned images of your receipts which are accepted by both the IRS and CRS. You don’t need to scour through file after file to search for data because  Shoeboxed  organizes and categorizes things as you scan them. 

Calculating tax deductibles will be a lot easier and with precise data, you can also create accurate expense reports that are tax-compliant and share them with anyone from your Shoeboxed app.  

  • Economical plans for small businesses

At Shoeboxed, we have plans for all types of customers, including individuals and businesses of any size. Starting from just $18 per month, you will be able to enjoy our unlimited file storage and make the best out of the Shoeboxed scanning app. Professional users can consider the $36 plan to include QuickBooks Online integration. 

Details of each package are available on our website, so make sure to check it out!

The bottom line

Trying out a receipt scanning software may become the best decision you can make to digitize your office. It offers the convenience and flexibility you need to manage your finances better while solving problems caused by paper receipts and documents. If you are up to this idea, we can’t wait to show you how Shoeboxed can make a difference! 

Capital Expenditure: An Ultimate Guideline For Small Businesses

As a business owner, you already understand how vital it is to closely monitor your costs to keep your accounting in order, manage cash flow, and generally run your operations smoothly.

Having low expenditures is the simplest approach to increase your company’s profitability and keep the door open for future growth. But, as you know, not all expenses are the same. Each type of expenditure impacts your profitability in different ways. 

This article will look at capital expenditure in particular – its definition & roles in business finance, ways to differentiate it from operational expenditure, and best practices to manage it efficiently.  

What is capital expenditure? 

Capital expenditure, also known as CapEx, is the money a company spends on acquiring, upgrading, and maintaining long-term assets. Long-term or fixed assets refer to assets with a useful life of more than a year. 

A capital expense can be tangible, such as a building, or intangible, like a patent. So, capital expenditures can include the purchase of new property, plant & equipment (PP&E), the renovation of a building to enhance its longevity, or a software upgrade for new functionalities.    

Simply put, CapEx is used to make investments or add extra value to existing assets, increasing operational efficiency and profit in the long run. That’s why capital expenses might not look good for your business income now but are necessary for generating revenue and future expansion of the business.

As a result, investors and financial analysts consider CapEx a critical indicator of how much a company is spending for further progress and potential growth. 

What are some examples of capital expenditure? 

Listed below are the most typical examples of CapEx, which can vary depending on the nature of your business model & industry. 

  • Property (including any costs incurred to extend the useful life)
  • Computer/Server equipment
  • Equipment upgrades (that increase the value beyond normal maintenance)
  • Furniture and fixtures
  • Machinery (including the shipping cost to its intended location and any required costs to use the machinery)
  • Office equipment
  • Real Estate (buildings, garages, etc.)
  • Software
  • Vehicles
  • Intellectual property 

What capital expenditure can tell you

CapEx can show how much a company invests in existing and new long-term assets to sustain or expand the business. Put it another way, CapEx is the expense that a company capitalizes or shows on its balance sheet as an investment, rather than on its income statement as expenses. By capitalizing on an asset, the company will need to spread the expenditure over the asset’s useful life. CapEx can also be found from investing activities in a company’s cash flow statement. Companies highlight CapEx in various ways, and an analyst or investor may see it listed as capital spending, purchases of property, plant, and equipment (PP&E), or acquisition expense.

The amount of capital expenditures vary from different industries due to their required infrastructure and machinery. Oil exploration and production, telecommunications, manufacturing, and utility industries are among the most capital-intensive businesses with the greatest capital expenditures. 

As previously said, capital expenditures are essential in the growth of a business. In terms of long-term financial planning, CapEx analysis assists executives in determining if an asset delivers an appealing rate of return. Therefore, companies may strike a balance between preserving current equipment and property and having enough cash to engage in expansion.

How to calculate capital expenditure? 

You can also determine capital expenditures by using data from a company’s income statement and balance sheet (in case you don’t have the data available already).

To calculate CapEx, follow these four steps:

  1. Find the depreciation/amortization on the income statement.
  2. Locate the current property, plant, and equipment (PP&E) on the balance sheet.
  3. Locate the amount of PP&E from the prior period on the balance sheet.
  4. Plug the numbers in this formula:

CapEx = PP&E (Current period) – PP&E (prior period) + Depreciation expense

Example: Let’s say you own a paper company, and in 2020, you decided to spend money on new equipment and an expanded facility. You want to calculate your company’s capital expenditures for that year.

You have the following information:

  • Depreciation = $10,000
  • PP&E at the end of 2020 = $40,000
  • PP&E at the beginning of 2020 = $35,000

Now you can estimate your capital expenditure based on these figures. 

Begin by deducting the PP&E value at the start of 2020 ($35,000) from the PP&E value at the end of 2020 ($40,000). This results in a $5,000 change in PP&E. Next, add this value to the depreciation expense ($10,000). The result is the capital expenditure ($15,000) for the year 2020.

Differences between capital expenditure (CapEx) 

vs. operational expenditure (OpEx)

To many business owners, any money spent on the business is considered only as an expense. However, this is not the case from an accounting & managerial point of view. CapEx and OpEx are the perfect examples to prove just that. 

Here are five key differences between CapEx vs. OpEx so that you will never mix them up again!

  • Definition 

Whereas CapEx is used to obtain or upgrade assets that have a useful life beyond a year, OpEx is the day-to-day expenses to keep a business operating. Typical examples of operational expenditures are rent, payroll, office supplies, normal maintenance. 

  • Accounting treatment 

As CapEx acquires assets that have a useful life beyond the year they’re incurred, these expenses can’t be fully deducted right away, at one time. Instead, they’re amortized or depreciated over the life of the asset. 

However, a business can fully deduct operational expenses. As they are everyday operational expenditures rather than long-term assets, you do not need to account for depreciation like you would with CapEx. OpEx is subtracted from the revenue to calculate the profit/loss of the company.

  • Financial statements  

You will find CapEx presented in the Balance Sheet (Statement of Financial Position), while OpEx goes in the Income Statement (Profit or Loss). 

  • Approval process

Capital expenses must typically be authorized by multiple layers of administration (including executive management), which will halt purchase until the clearance is granted. On the other hand, OpEx items are generally an easier process, as long as the item is covered through and budgeted for in the operating expense budget.

  • Upfront cost 

CapEx is an upfront cost, which has a value that gradually reduces over time. In contrast, there’s no upfront cost for OpEx. OpEx is the spending money on services & products necessary for day-to-day business operation, and it’s usually billed monthly or annually. 

Can you write off capital expenditures for tax purposes right away? 

In short, no. Unlike operational expenses, the IRS mostly doesn’t allow capital expenditures to be immediately deducted from your business profit in the year it incurred. Instead, they are gradually deducted from your business profit throughout the asset’s lifespan. 

For example, let’s say your business purchases $3,600 equipment, and the depreciation rate for that is two years or 24 months. This means that your company would deduct $150 every month and $1800 in a fiscal year. 

There are specific regulations that decide the number of years over which an asset is to be depreciated. Computer hardware, for example, is commonly depreciated over five years, while it is over seven years for office furniture.

Challenges with capital expenditures

CapEx is extremely vital to the future development of a business. With that being said, determining how much and how to allocate CapEx is not an easy decision at all. Here’s why: 

CapEx is unpredictable  

Due to its nature, the impact of CapEx decisions often prolongs into the future. The variety of present business activities is mostly the outcome of CapEx in the past. Similarly, current CapEx decisions will have a significant effect on the company in many years to come. 

But, no one can be sure of what the future holds and what lies ahead. 

Businesses making large investments in capital assets sometimes expect reliable & fruitful results. Such outcomes, however, are not guaranteed, and losses could occur. Both costs and profitability of CapEx are fraught with ambiguity. That’s why business owners should thoroughly account for risks during financial planning in order to reduce prospective losses, even though they cannot be totally eliminated.

CapEx is irreversible 

When a business wants to reverse capital expenditure, it will almost always suffer from losses. As much as capital equipment is tailored to an individual company’s requirements and demands, it’s difficult to resell, not to mention the paperwork process & time involved. 

For example, if your company buys new technology that rapidly becomes obsolete, you could hardly ‘undo’ that. Even worse, you might end up paying a big chunk of debt.

CapEx is difficult to measure  

The accounting process of realizing, measuring, and estimating capital expenditure may be extremely challenging. Some capital investment outcomes, such as boosting staff motivation and mental health, will not be shown on a balance sheet. Furthermore, calculating other related expenses is complicated, too. Let’s say your business is considering buying a brand new delivery van. You’d need to calculate the salary for a driver, insurance, fuel, along with other costs to determine the real cost of purchasing a new van.

Best practices to manage capital expenditure efficiently

Capital expenditures are often, because of their nature, significant in cost. Because of this, managing your CapEx properly and efficiently can save your business a lot of money and guarantee profitable and faster growth. 

Below are the five best practices for managing capital expenditure:   

  1. Be clear with your long-term business goals 

Once you’ve set defined, specific objectives for your business, you’ll have a solid framework to evaluate which CapEx proposals are worth investing in. If the scope of a CapEx project does not align with your long-term goals, the solution is simple: cancel it. 

When focusing on the big picture, consider where you want your company to be in five to ten years. Good capital expenditure planning & managing will offer a decade’s worth of value, helping you & your business achieve those long-term goals. 

  1. Standardize the approval process for CapEx requests

Regardless of your business size, every capital expenses request must undergo an evaluation process to get approval. However, sometimes this process can get lengthy or lack communication between departments, often leading to missing out on timely opportunities. 

Make sure to build a comprehensive guideline for your employees on the template of a CapEx request form, what analysis is required, or criteria to evaluate a project.

An efficient and systematic approval process will help you quickly determine if the CapEx is suitable with the company’s current portfolio or the return on investment (ROI) – weighed against both the costs and risks – is worthwhile.

  1.  Create a proper budget 

A solid budget will guarantee that you have the money to continue moving forward with capital projects while still having enough cash to run the business. As you plan your budget for the coming year, you must determine whether to use current cash to acquire capital or to incur debt on your balance sheet. 

It’s a good chance to figure out how your CapEx will influence your OpEx. For example, if you buy a new delivery van, be prepared to pay money on fuel and maintenance. You should also consider if it is financially wise to continue with CapEx. As manufacturing technologies continue to improve rapidly, leasing equipment or software (OpEx) may be more profitable than purchasing them.

  1. Carefully choosing financing options 

Your ultimate goal in financing CapEx should be to select the financing solution that will result in the most effective use of your working capital while also providing you with the most flexibility with asset ownership. Companies usually finance CapEx via two major methods:

  • Internal financing: the simplest way is to use your own cash. This also means you don’t need to pay any interest expenses. Yet, many companies don’t have enough cash on hand to pay for what they need. Also, you should consider the opportunity cost of paying large sums in a depreciating asset compared to other profitable ways to use that money.  
  • External financing: capital expenditures frequently necessitate the use of debt. Long-term debt comprises debt-servicing expenses such as interest, so companies must have enough income to cover their debts as well as their interest payments. While CapEx is a strong indicator for a business’s potential growth, too much debt can put the company in financial jeopardy.
  1. Use accounting software 

Using reliable & suitable accounting software to handle capital expenditures can reduce financial mistakes and errors. Failing to claim depreciation correctly can cost you much more than what it should be and might trigger an IRS audit

A great tool to support your accounting system and keep finances in order is Shoeboxed. Shoeboxed is a receipt scanner app that automatically digitizes & extracts important data from your receipts. This means your receipts are well-organized in the cloud, instead of taking up office space and your mind.

Conclusion

Capital expenditure (CapEx) refers to the funds for buying fixed assets or adding new value to the existing ones. It’s an essential driver in how a business develops and stays competitive in the market. 

Since managing CapEx is a highly complex process, fully understanding its nature or how to distinguish it from operational expenses is a must. 

Hopefully, this article has helped you do just that!

How Digital Transformation Affects the Future of Accounting

Digital transformation is the integration of technology and digital applications into a business’ processes, with the main goal of increasing operational efficiency, enhancing the experience, and satisfying customers. Moreover, digital transformation creates a huge competitive advantage for businesses in the market.

Accounting is no exception. The future accounting profession has moved far beyond mere bookkeeping and payroll, as well as purchasing procurement. Technologies such as cloud-based data management, process automation, and artificial intelligence are unlocking businesses’ numerous potentials and elevating accountants’ skills. 

1. How digital transformation affects the future of accounting

Leveraging the cloud

“Working in the cloud” is a noteworthy working trend in the future of accounting. Forbes points out that cloud accounting is experiencing rapid growth as new intelligent technologies like the Internet of Things (IoT), Artificial Intelligence (AI) and machine learning permeate the market. Since cloud-based accounting integrates information into a cloud system, accountants will no longer need to keep tons of paper stacks to save business data! A cloud-based accounting system enables instant access to various data resources and computing capabilities. A significant benefit of the cloud-based system is the continual updating of information. It also allows accountants and clients to analyze data and make decisions based on cutting-edge information. According to the Journal of Accountancy, cloud-based technology also monitors information constantly, instead of intermittent analysis, whenever the information is updated to the system.

Various statistics carried out by cloud-based enterprises have proved that by 2020, by 2020, 78 percent of small businesses will be relying solely on cloud technology for accounting. Especially during the time of Covid-19, there is an increasing number of businesses investing money in virtual working technologies. 

An example of a cloud-based accounting system is Shoeboxed. Used by millions of SME businesses worldwide, Shoeboxed helps accountants get reimbursed fast and maximize tax deductions by tracking customers’ expenses and receipts. How does it work specifically? Shoeboxed receives customers’ receipts by mail (with free delivery) or scanned documents (with our mobile apps, available on Apple Store and Google Play Store). Then, Shoeboxed extracts the most important data from customers’ receipts to one organized place for easy and at-a-glance expense tracking. Customers can then view and export their data anytime and organize them in their categorizations. Shoeboxed also ensures that all of your receipts are legibly scanned, clearly categorized, and easily located. Shoeboxed proudly helps customers free their desks and drawers from paper receipts and brings the best solution in document storage for years!

Accounting task automation

A medium to a large-sized company may have to receive hundreds, even up to thousands of input invoices per month. It may take skilled accountants approximately 3 minutes for each operating step, such as reading, putting invoices to Excel tables, verifying information with the General Department of Taxation, synchronizing data on accounting software, and storing documents in the business’s standards. 

With the development of new technologies such as RPA (Robotic Process Automation), AI (Artificial Intelligence), OCR (Optical Character Recognition) in the 4.0 era, the daily, manual accounting operation at enterprises no longer needs human participation. The accountants will no longer need to spend hours and waste energy handling accounting tasks manually, which may cause error and fatigue during peak days. 

Here are some examples of applying RPA in the future of accounting: 

  • Manage Accounts Receivable: Bots can manage customers’ key files and credit approval, purchasing process and collect revenue. 
  • Manage Accounts Payable: RPA helps to transfer incoming invoice information (such as invoice number, received data or amount) from PDF files to SAP web applications and internal spreadsheets. This is a useful application that can reduce the invoice processing time by up to 60%. 
  • Cost allocation: RPA easily combines data from different sources (emails, Excel spreadsheets, Google documents, etc.) into one master file, then upload directly to the ERP system. The software can do these actions in a short time (i.e., under a minute).
  • Financial close & Financial reporting: Financial closing and reporting are decisive aspects of all businesses’ success. Ideally, a well-executed month-end close should be fast and smooth and take about three to four days to complete. Using RPA, in this case, brings businesses a successful month-end close and helps improve organizational performance. By automating all the workflow steps, an accountant can simplify the transitions between each stage of AP, centralize all AP operations, and preserve all payments and approval details together. With RPA, accountants can save time, prevent fraud and reduce errors in doing financial close reporting.

Artificial Intelligence 

Artificial Intelligence (AI) is one of the high technologies that enable a computer to do decision-based tasks previously conducted by humans. AI comes in multiple forms and in many aspects of life. Like machine learning, the more you use AI, the better it gets at data analysis and decision-making. The most common uses of AI in the future of accounting include automating tasks, machine learning, basic task automation, fraud detection, service investment, and deterministic loan approval processes. 

2. The future of accounting jobs with digital transformation

Technology will support, not replace accountants

The global workforce, especially accountants, may be concerned that technology will replace their jobs in the future of accounting. Even the most professional auditor may fear that they will lose their job to AI-powered machines. This is a common fear, however, according to the U.S. Bureau of Labor Statistics, the future of accounting jobs shows positive potentials with the prediction to grow by 4% between 2019 and 2029. 

In the future of accounting, AI technologies such as Machine Learning will support accounting and finance professionals to perform their tasks more efficiently. We can understand that AI supports the human workforce, but doesn’t steal their jobs. 

For example, AI drives straightforward processing, frees accountants from stressful and tiring tasks. In the meantime, they can spend more time interpreting and analyzing data collected by AI, and provide better-consulting services. To explain in a simple way, AI allows accountants to focus on tasks that require creativity, strategy, and ingenuity – features that AI can not really provide yet. So in the future of accounting jobs, manual tasks will be handled automatically and intelligently by AI, helping accountants perform their job in a modern way.

Future of accounting profession: More intelligent, strategic, and creative than ever

As Accounting Today has stated, “as with any evolution, whether Darwinian or technological, those who aren’t willing to adapt risk being left behind.”, accountants must keep moving forward. Future accountants must have the strong technical knowledge and necessary skills to perform the administrative, managerial, and analytical tasks that technology can’t do. For example, when more companies use the cloud-based system, accountants need to be proficient in using the cloud to analyze, manage, and transfer financial data. They can use their uniquely human skill to transform the insight from high-quality data collected by AI and provide more effective, realistic financial planning and reporting. They can also collaborate with peer businesses to leverage financial data to drive innovation, build more resilient and agile supply chains and develop business management plans that promote growth while ensuring continuity.

As automation becomes a major aspect in the accounting sector, all future accountants must develop the technical knowledge and skills to handle tasks that technology can’t do. Accountants may also need to take on an advisory role with clients, which requires them to analyze big data and trends. In this case, a data-driven mind is a key to success in the future of the accounting profession.

See also: The Digital Accounting Era: Five Steps For Accountants To Succeed.

Final thoughts

The future of accounting is undeniably changing with intelligent technology. Future accounting jobs will require accountants to be eager, adapt quickly, and evolve alongside the business. Don’t let yourself be left behind – start your business’s level of proficiency in the future of accounting now with Shoeboxed.