Advancement of technology has put a smartphone in almost everybody’s hands and there are apps available for practically every task!
Accountants, like the rest of us, are becoming more dependent on their smartphones to access data.
Mobile accounting has become the norm in our fast-paced world. You may be wondering what exactly is mobile accounting.
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Well, to put it in simple words, mobile accounting is accounting software that can be accessed through devices that are not restricted to one physical space. This can be one of the following:
- Apps made specifically for mobile devices which have the best user experience and interface
- Cloud-based accounting software that is generally used on a desktop but can be accessed through a mobile device too
The transition of the accounting industry from the old spreadsheet, paper envelope and cheque format to the more advanced and environment-friendly web and mobile-based application format has been a slow one. There is limited flexibility in terms of devices used, storage space and cash flow in the traditional method.
Mobile accounting provides companies with more flexibility to aid in focusing entirely on making a profit and getting rich rather than bothering the administration with these tasks. It promotes increased cash flow, greater transparency and easier payment tracking, all of which increases efficiency and productivity, and can help save time and resources for your company.
It all comes down to the basic rule of survival in business today – “adopt new technology or stay behind others.” Let’s look at a few reasons as to why updating mobile accounting can be beneficial to your company:
Also, Read: Top 5 Benefits of Integrated Accounting System
Why Mobile Accounting is the Future for CPAs?
Invoicing In Transit
Invoicing is usually considered to be a tedious desk job. It is something that your employees do in bulk at the office at the end of the day in front of their desktop. However, with mobile accounting apps, invoices can be sent from anywhere and at any time. Companies can forward their invoices by empowering their employees with such apps.
It is then a task that can be done with a touch of a finger while commuting, while taking a break for lunch, or even immediately after daily tasks are completed, either through their iPad or a smartphone. This promotes cash flow within the company, the sooner you send out an invoice, the sooner you’ll get paid. CPAs can now improve your cash position in a single move.
CPAs can Work from Anywhere
Companies can become far more proactive with the help of CPAs. There is an increased interest in the daily metrics, and you can pay closed attention to the trajectory of the business.
Companies can easily update their financial data into their mobile accounting app just by taking a picture of their receipts, similar to Snapchat, but for their accountant. This reduces the load on the CPA at the end of the fiscal year and can improve the company’s relationship with their accountant.
Let’s Save The Environment
Mobile accounting saves a lot of paper in the form of receipts, cheques, envelopes, invoices, etc. This not only saves valuable resources, but it is also cost-efficient and there isn’t any immediate threat of being buried by a massive pile of documents at the end of the financial year.
In addition to this, the looming fear of losing a cheque, or an invoice, isn’t hanging over the company. Reduced dependency on paper not only relieves the company of certain financial obligations but through the use of mobile accounting applications and cloud-based applications, you also contribute to saving the environment.
CPAs can perform various functions for their clients like preparing income and expense statements, balance sheets, cash flow analysis, perform bank reconciliations, track billable hours, and create and send invoices.
In addition to the increase in the number of tasks that CPAs can perform while not at the office, mobile accounting can also help keep the financial data of the company up to date and more accurate to the minute, making it easier for CPAs to track and give advice on business performance and trends. It makes book-keeping far more convenient.
Increase in Efficiency & Productivity
Mobile accounting is an automated process. Certain reminders, updates or recurring invoices can be scheduled in advance. This saves time and avoids the risk of missed deadlines. In addition, certain tasks such as recurrent billing, tax calculations, and reporting are automatically processed and can contribute to increased productivity.
The availability of numerous advanced tools such as signature gathering, receipt capturing, and customer relationship management, has dramatically simplified the accounting processes for CPAs.
It is incredibly convenient to use and draws more people to it. Backing up data through mobile accounting is much easier, too. Cloud computing has made it quite simple to access data and store data which, in turn, promotes traceability, accuracy and better communication.
Safe and Secure
One of the main reasons that contribute to companies still engaging in paper transactions is the fear of financial fraud or identity theft on the internet. Financial statements and documents stored by CPAs and accountants have sensitive information stored on them such as the name, address and bank account number of the companies.
Mobile accounting manages such information in a secure repository. These repositories can be accessed only via a safe mobile transmission app and can be shared using a secure online transmission. They are protected from loss or breach of any data.
Also, Read: Top 5 Benefits of Integrated Accounting System
Usually, for a team of people to access the same data, they are required to access the same network. However, mobile accounting works solely through the internet and, as such, provides the advantage of being accessible to users across different time zones too.
Additionally, businesses can integrate their mobile systems with different e-commerce sites and payroll processing, give rights to their accountant and manage inventory. Accessibility of accounting data from invoices and bank statements becomes better, and although it may seem daunting to use different kinds of technology in the beginning, it proves to be very beneficial with time.
Gain Client Loyalty
Due to the easy accessibility of data, and the increased functionality that mobile accounting provides, CPAs can respond to the clients’ requests and queries more rapidly. This way, it is significantly easy to maintain clients across time zones.
While meeting a client away from your workspace, it is still possible to refer tax reports, invoices, status reports or audit lists through your iPad or smartphone. Clients can make requests at any time via email, making the whole process more client-centric. A happy client is a loyal one too.
Accountants need to get into the digital system, quite literally, and embrace the advances in accounting technology. Mobile accounting is a rapidly growing trend, and if you don’t make the necessary changes to embrace it, you may become obsolete in your own field.
Accountants and CPAs who want to embrace this growth and stay one step ahead of their competition should work on improving the available mobile accounting technology for their clients, personalize it by increasing the functionality or improving user experience to make it more inclusive.
This also includes staying relevant by keeping up with technological trends, adapting to software changes, and being open to accepting and learning increasingly advancing technologies.