You’d think, as an accounting team, you’d be better equipped than any other department to save your organization some cash. However, if you’re still using outdated technology, your costs could be higher than ever. Between obsolete record-keeping methods, slow or error-prone payroll systems, and administrative needs, costs can get out of hand. That’s why it’s crucial for accounting to have access to just as much new tech as sales or marketing.
Thankfully, AI, automation, and the cloud — among other technologies — are making it a whole lot easier to keep up with the times. A digital transformation isn’t just possible; it’s often more secure, more affordable, and user-friendly than ever before. There are software tools, apps, add-ons, and integrations for almost any accounting function you can think of. Here are some of the best tech tools to help you get started saving money and streamlining your accounting.
1. Accounting Software
With accounting software, you can automatically generate and send out invoices with just a handful of clicks. There’s no more fiddling with finicky templates, adjusting formatting, or making sure your attachment is actually attached. Newer programs also let you offer your customers a variety of digital payment options. This makes them more likely to pay up right away, since it’s a lot more convenient than, say, cutting a check.
More advanced systems may also allow you to set automated reminders, so you don’t have to go chasing down clients or contractors. The system will send them a quick ping at whatever frequency you select, from daily, weekly, or whenever you’d like. Some programs also come with a phone app, letting you request and track payments on the go. You won’t just save on late payments; you could even reduce your overhead on electricity and office space.
2. Budgeting and Forecasting Tools
Budgeting and forecasting tools can use machine learning, predictive analytics, and AI to help predict future revenues and costs. They can help you model future business scenarios, so you can build the right budget for the future. Using your company’s latest financial information, they can provide real-time insights and highly accurate forecasts. They can also run “what if” scenarios to help you make crucial business and accounting decisions.
More advanced systems can combine normally siloed data from multiple different teams or departments. In other words, you can look at the impact sales, marketing, or operations will have on your total budget. The best systems also integrate with other financial tools, inventory management systems, ERPs, and CRMs. These can get costly, however, so it’s important to make sure the platform you choose is the right tool for your needs.
3. Blockchain Technology
Blockchain technology is a system of immutable record-keeping that, in theory, reduces or eliminates the need for third-party intermediaries. Financial records kept on blockchain may be less prone to errors and tampering, and are much more transparent. Blockchain simplifies transactions in multiple currencies, and allows for less regulatory involvement, since transactions are much easier to verify. Transactions can be faster, since they don’t need to go through a third party like a credit card processor.
The downsides to blockchain are that it’s initially expensive to implement, and requires specialized skills and knowledge. It may also not be an option for your company, due to regulatory concerns and relative obscurity. Blockchain also isn’t necessarily compatible with other systems and software your company may already be using. All in all, while this one is theoretically very interesting, it may see very slow adoption.
4. AI Tools
While blockchain has been a pretty slow-moving contender, AI tools have seen much faster adoption across all industries. AI models can do things like scan through large documents, looking for errors, or spot patterns in financial data. One thing AI is especially adept at doing is noticing transaction anomalies and possible fraud. It can quickly identify and flag an irregular transaction or any other suspicious accounting pattern that might be losing you money.
That said, AI is still a relatively new technology, and is prone to its own errors and issues. It’s very important to choose thoroughly vetted financial tools that meet compliance and security requirements. In other words, don’t go asking ChatGPT to do your taxes or read your payroll systems for you. Instead, keep an eye out for emerging tools, and always — always — double-check everything with human eyes.
You Can Account on Me
Accounting isn’t usually the first place you look when you’re thinking of upgrading your tech stack. However, adopting the right tools could boost profits for your whole company by streamlining operations where it counts. As your business grows, look for processes that are eating up time or contributing to costly accounting errors. There’s likely already a tech solution out there that could save you a lot of time and money.
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