Gone are the days when accounting was limited to basic activities such as bookkeeping and payroll activities.
These days, accounting has shifted to an increasingly strategic role for forward-thinking businesses, where generating financial reports, creating automated dashboards, and performing online transactions have become the standard of accounting activities.
While some analysts earlier predicted that accounting activities have a dim future in tomorrow’s digital world, the surge in fintech technologies and online transaction strategies adapted by businesses have pushed the digitized accounting activities even further.
Emerging fintech technologies and methodologies such as cloud-based data management, process automation, and advanced analytics are only poised to further elevate accountants in new and empowering ways.
With the rising instances of compromised financial data, and hampered finances, organizations are becoming susceptible to invest in digital ways of financial transactions and accounting processes.
However, the penetration of digital transactions is fuelling the demand for digitized transaction processing systems.
Furthermore, implementing a digitized accounting process possesses the following challenges requiring due diligence and proper risk assessment tools to drive an uninterrupted, smooth, and seamless financial transaction process.

1. Fear of Technology Disruption

Fear of technology replacing the manual processes keeps on rising among the businesses and institutions that depend on the manual way of accounting processes for a significant part of their transactions.
According to research conducted by Forbes in 2019, 33% of organizations reported a 25% decrease in the projects focussing on the online transaction processes.

2. Concerns about better ROI

ROI refers to return on investments. Every transaction, every accounting process, improves the odds of concerns about the results driving out of the investments made.
However, centralizing the data management, streamlining the accounting activities, modifying the financial payment interface, using cloud technology reduces turnaround time and lower costs considerably by improving communication and collaboration.

3. Data Analysis Procedures

Performing data collection, analyzing the data, and making informed decisions from the given data set forms the basis of accounting activities.
Standardizing accounting processes involving several tasks makes it easier to capture, access, share, and analyze data.
Similarly, digitized automation processes reduce costs, improve efficiency, and reduce turnaround time by eliminating tedious and time-consuming manual activities and human error.
Also, several other procedures such as generating financial reports and creating automated dashboards ease the overall accounting activities in digitized ways.
Financial planning and reporting, when performed diligently, drives intelligent solutions that help businesses maximize the business outputs, leveraging their financial procedures with utmost diligence.
Fox ERP’s Accounting possesses all these features, which streamlines and digitizes the overall accounting activities in the easiest ways.
These processes get equally supported by technology in a collaborative setting with the accounting teams populating with the subject matter experts from other business areas.
Leveraging data management tools and augmented reality to humanize and contextualize spend data for the C-suite to make better decisions based on long-term returns and not just the initial investments alone remains crucial to the business priorities.
Organizations that understand the potential and importance of these technologies play a more creative and strategic role in their companies.
They focus on driving more efficient workflows and reaping more valuable insights from their accounting processes, thereby helping strengthen their resiliency, agility, and competitive footprints.
Fox ERP, the dynamic market-changing ERP software, possesses unique features that efficiently streamline accounting activities.
It creates a configurable chart of accounts that manages accounting ledgers, avoiding manual transaction processes.
Its multiple currency feature records transactions using journal entry or payment entry, easing the overall payment and transactions processes.
It bills customers and sends payment requests by providing auto-invoicing and saving time on identical transactions.
Furthermore, its synchronization with the bank statements by linking the bank accounts creates a seamless transaction process, enhancing the user experience for customers.
Its consolidated financial statements provide an all-new digital transactions experience to the customers, making Fox ERP one- of- its kind of ERP software in the market.
Its “Do it yourself” mode of implementation eases the implementation process, enabling users to drive maximum profits with minimum time.

Conclusion

Accounting activities form an integral part of any business. These not only manage the inflow of cash and transactions part but also drive the overall profitability of the organizations.
With the rise in digitized business practices, accounting practices also leverage the potential of enabling financial transactions by automating and digitizing the steps involved in accounting processes.