Five Accounting Technology Innovations that Every CFO Should Be Aware of

October 6, 2017   |   Blog

birds' eye view of a man sitting at a desk and pointing at a computer screen with a pen

In a survey conducted by Robert Half Management Resources, 41 percent of CFOs cited technology as a major source of stress in their jobs, saying that innovations in accounting are progressing so rapidly that it’s difficult to keep up. Becoming familiar with the biggest trends minimizes the struggle with increased efficiency and a more streamlined approach to managing corporate finances.

Cloud-Based Accounting

The cloud computing trend that has grown increasingly popular in other areas of business is making its way into the realm of accounting. Cloud applications can handle everything from payroll and invoicing to taxes and benefit payments. All financial information is updated as soon as changes occur and can be monitored and managed from a user-friendly administrator dashboard. Automation handles tasks that previously took time away from more important duties. Moving accounting processes to the cloud also removes a burden from the IT department by shifting the responsibility for software management and updates to the cloud service provider.

Complete Integration

Customized integration solutions are changing the way businesses operate, and this is proving to be a boon to accounting executives. In the past, accuracy was a major concern, especially when financial information was transferred between departments. One small error could compound to create serious problems down the line, necessitating corrections that wasted valuable company time.

Today, it’s possible to link together ERP, CRM and CMS software as well as legacy applications to create a unified environment where authorized users from every department can access the information they need at any time. Alerts can be set up to call attention to any errors that do occur, preventing the “snowball effect” that cripples productivity.

Manual Entry Minimized with OCR

Using an integrated system already cuts down on the amount of manual entry required to manage company finances, but the advent of optical character recognition (OCR) software is simplifying the process even more. Advances in this technology allow companies to use scanners or even the cameras on mobile devices to capture printed financial information such as receipts and invoices and translate the text into digital files. Improved accuracy has cut down on the rate of error during this translation, and future updates promise to further improve the procedure’s efficiency.

New Solutions in Tax Software

With payroll, expenses, receivables, payables and all other pertinent financial information available through an integrated, cloud-based solution, tax time becomes much less stressful. Modern innovations in accounting and tax software allow CFOs to take advantage of the correlated data collected throughout the year to ensure accuracy for all tax forms and payments. Real-time data updates prevent errors caused by outdated reports and missed entries.

Whether a company pays quarterly or annually, precision in tax reporting is essential. Mistakes can lead to over- or under-payment or, in the worst case, an audit. Most tax software programs make the process easy with tools that handle details such as deductions and alerts that point out potentially costly data entry errors.

Remote access is one of the greatest benefits of modern accounting technology. CFOs and other financial professionals are no longer required to be in an office to input new data, update tax information or run reports. With the right software solution and related mobile applications, it’s possible to handle a company’s finances from anywhere. Data entered by employees at the office is immediately accessible via the cloud. Other members of the mobile workforce can record expenses or payments on the go. This flexibility gives CFOs the up-to-the-minute information they need to stay on top of the financial health of the business.

Today’s CFOs recognize the value of these and other emerging accounting technologies. Understanding how to implement and utilize the right combination of systems results in a more stable financial state and improved corporate growth. Modern accounting technologies are efficient, scalable and secure, providing just what CFOs need to ensure success.