How do changes in bookkeeping impact small business accounting in Tulsa?
Due to persistent competition and need to improve operations, small businesses have increasingly adopted technology and leveraged it for increased efficiency. One of the areas that have significantly been affected by this is accounting– since the invention of the abacus, technology has played a critical role with every advancement directly or indirectly affecting it. The calculator itself, is just a single technological entity that has largely influenced the evolvement of small business accounting to the complex set of computer operations it is today. Collectively, technology has:
Eliminated the Complex Manual Accounting Processes
Although accounting as a trade has exceedingly developed by growing holistically, it’s less demanding thanks to computer processes that do all the hard work. In a study conducted by the CCHGroup in 2012 that involved collecting data from more than 400 tax auditing and accounting professionals, it was determined that the accounting skills required in small businesses have significantly changed over the years. In the past, the three most critical ones were:
- Analytical and problem solving skills
- Extensively knowledgeable
- Mathematical and Financial skills
Although the former two still stand, currently, the latter skill set has changed to ‘Ability to leverage resources’ thanks to technology. Extensive mathematical skills are not as critical as they were since computer systems now handle the complex math formulas and data processing.
Integrated Different Departments
Through Enterprise Resource Planning (ERP) Systems, 21st century small business accounting has been revolutionized by integrating all the relevant departments within an organization. They are custom tailored to meet organizational needs by supporting activities and making information available to all terminals through a central database. Accountants can therefore efficiently generate manufacturing, human resource, marketing, sales, accounting and finance data from all the respective departments and make their reports available to all just by the click of a button.
Increased Data Security
Accounting data is always sensitive and businesses cannot afford to lose it. In fact, most business prioritize their security on product information and accounting data. Compared to the past, security is now easier to enforce thanks to digital data, which is not as susceptible as physical files. Once stored within the drives (whether cloud or physical), the data is secured by effective encryption systems and additionally secured by security software.
With more advanced technologies expected to roll out in the near future, small business accounting is predicted to consistently develop and improve as you leverage these resources.