The Accounting profession has not been spared from the effects of the persistent Covid-19 pandemic. For some, the effect of the pandemic presented opportunities for investment in technological advancements whilst for others, it resulted in total disruption to daily business activities thus the accounting function. The seriousness of the effects however, depended on the level of innovation of the accounting function in individual organisations. Needless to say, the risk seekers took this opportunity to think outside the box and improve on current systems and procedures by moving towards virtual accounting.
What is virtual accounting? Is it the future of accounting?
Virtual accounting has been around for some years now and is now a new trend that allows qualified accountants to offer their services remotely. Accounting data is stored and processed in the cloud and this provides easy access and real-time updates to both the business owner as well as the Accountant. Today, working remotely is no longer a thought for the future but as the saying goes, it is the new normal. The Financial Review published and article on June 30 2021, in which Deloitte announced that once state-based restrictions are lifted, Deloitte’s staff will be able to decide when they go back to the office and which hours they work, under a new policy that could spell the end of the traditional nine-to-five workday.
So what are the benefits of virtual accounting?
First and foremost is the cost savings for all entities in terms of recruitment, office space and supplies. In addition, the Accountants’ job becomes more flexible since they can easily access accounting data in the cloud from various time zones depending on their location. With the use of technologies such as cloud, artificial intelligence (AI) and robotic process automation (RPA) organisations will achieve more efficiency as well as new and up-skilled workers. Management can then focus on the quality of the data and strategically improve the overall business services through value addition. Deloitte’s annual global survey of executives published November 25 2020 revealed that 73 per cent of respondents said their organisations have embarked on a path to intelligent automation. Of all survey respondents, 78 per cent are implementing RPA and 16 per cent plan to do so in the next three years.
Some businesses may find that the move towards virtual accounting involves substantial investments in technology. However, some companies are already providing virtual bookkeeping services to clients on a reasonable contractual basis. On top of that, not only does the client benefit from a full-charge bookkeeper but from the expertise of a financial controller. This is the case for CRESCO Accounting Seychelles whose client base range from small to medium-sized companies. On the other hand, companies with sufficient resources are able to invest in complex technologies for automation purposes.
At first glance, traditional Accountants may view ongoing innovations, as a threat to their career however, the picture is not all bleak since the move towards virtual accounting is an opportunity to grow and acquire new skills. On the other hand, the traditional accounting framework will have to be revised by concerned bodies in order to accommodate technological advancement. The move towards virtual accounting is inevitable given the current times and Accountants and businesses alike must embrace the change for survival.
CRESCO Accounting is the business partner you need to navigate through the changing business landscape. They adapt to innovations that serve client’s needs and the future of their business. Contact us today and let’s establish a meaningful journey for your business.