Published Date: June 12, 2020 . Last Updated November 25, 2022
If your accountant is better at invoicing then why do you need CPA software? Technology is ever-evolving. Technological changes are overwhelmingly welcomed in the accounting industry. The use of new technology has created an army of next-generation accountants who are better at basic bookkeeping, tax compliance, and much more.
As modern accounting software became available, the next generation of accountants invested their time, effort, and resources in using these new-age wonders. Accounting solutions are more compatible based on internal and external workings. The majority of firms are looking for qualified next-generation accountants.
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Old vs New Accountant – What’s the Difference?
Accounting is one of the oldest professions to ever exist. Its history is traced back to the earliest civilizations.
The modern accountant (chartered accountant) originated in Scotland in the 19th CE. Fast forward to the 21st CE, basic accounting has changed dramatically. With the advent of the internet, most accountants are expected to be tech-savvy. They must be able to use modern CPA software for better productivity.
So keeping the technological aspect in mind some of the major differences between old and next-generation accountants are as follows;
- Old accountants work in a traditional office and the standard business hours. But a modern accountant can even work at home. They can also be outsourced from other firms.
- Next-generation accountants are not limited to geographical boundaries or time zones. Working remotely gives them the edge to provide their services to foreign-based companies. They are less susceptible to the country’s recession than the old-fashioned accountant.
- Traditional accountants do not work online. Their accounting systems are on their desktops or laptops. But a next-generation accountant works online using highly sophisticated CPA software like QuickBooks, My CPA Dashboard, etc. such software allows them to work either in the office or at home.
- Next-generation accountants are considered to be entrepreneurial in nature. They also provide advice to the global client, and discuss future trends and perspectives. But traditional accountants are not well-versed with the global business community.
My CPA Dashboard understands the needs of the accounting world. Clients want an accountant who can multitask. As the cloud-storage provider in the field, we have identified ways a traditional accountant can upgrade their skills to the next generation accountant with help of CPA software.
The Origins of Accounting Technology a.k.a CPA Software
American William Burroughs is the man behind the adding machine in the 1880s. It enabled the accountants to carry out arithmetic tasks efficiently and accurately. A computer couldn’t.
Another invention took place by the end of the century. Herman Hollerith, the inventor of the punch-card machine. The tabulating machine recorded the data once the pattern of holes was punched into cards.
John Mauchly and J. Presper Eckert developed the ENIAC computer. It was built for military purposes. It stored data on magnetic tape instead of punch cards. Soon General Electric factories used it to run their payrolls. It took 40 hours to complete the payroll calculation!
With the advent of the internet, things changed dramatically.
The introduction of cloud computing, SaaS, and Apps for accounting software-enabled many more people to use modern CPA software at any time on a variety of devices with no need to worry about installation or compatibility issues.
How Modern CPA Software helps the Accountant?
Managing the accounts can be difficult. So, CPA software is helpful to track the money in and out of the accounts. As a quality accounting tool, a CPA software;
Helps Maintain Finances
Managing personal finance is a lot easier. Running a business and maintaining its finances brings challenges. Spreadsheets are out of the league now. CPA software can provide insight that may be overlooked.
Accounting software organizes and stores financial data in its cloud storage. Another advantage is that CPA software for accountants comes in handy to evaluate the business’s financial performance.
Generating Invoices
Keeping track of cash flows is a lot easier with modern CPA software. The longer you take to maintain the accounts, the harder it will become to generate the invoice. The most professional and best accounting software benefits the accountant by letting them automate the invoices.
Creating invoices (one-time or recurring), sending follow-up reminders, and all other related tasks are kept in record.
Expense Tracking
Cash is a kind of small business. It is important to keep an eye on it. CPA software lets an accountant keep track of expenses and income. Using accounting software also helps to prevent the increase in expenses. You can scan invoices and receipts, and make records and reports on the basis of the financial information the accounting software provides.
Progress Reports
Where does all the data go? The CPA software allows accountants to collect data in the form of progress reports.
You can even conduct a deep analysis of the business that provides major insight into the finances. It also enables you to analyze data and track weekly and monthly performances.
Collaboration
Having all the financial information centralized in one location helps the accountants to track performance and enhance productivity. CPA software is designed for accountants. Tax filings are made easier, inventory tracking is straightforward, and so on.
Several professional accounting software gives access to the user to maintain the documents and information. Accountants can maintain clients’ information the right way.
Incredible but Easy Ways to Become the Next-Generation Accountant
Accountants are no longer limited to accounting tasks. The next generation of accountants are now the business partners in a client’s business. The use of CPA software now demands a set of diversified skill sets. Accountants need to be more tech-savvy, embrace digital transformation but also be good at soft business skills like communication and problem solving, etc.
To improvise accounting ways some of the easy-to-follow ways are given below.
Use of Technology
It is hard for traditional accountants to mend their practices. However, the current technology is ever-growing. The demand for cloud-based software is increasing so one needs to acquire CPA software for accountants to improvise with the old accounting practices.
Using modern CPA software to help with the tedious tasks that are no longer needed makes accountants more updated with their tasks.
Better Communication
Maintain a strong client base through constant communication and better customer service. The best thing about using CPA software is that you can grow your business without the need to spend hours on tasks that are no longer necessary.
A modern accountant will adapt his accounting practices with the CPA software. It will also help them to communicate with clients with up-to-date financial information.
Client Benefits
By using the technology tools, the next generation accountants can better maintain the clientele. They can help clients to better understand the business, improve their cash flows and maintain the data.
The client will benefit more from the accountant who works with the developed systems and procedures. The maintenance of financial systems, and following the key performance indicators are just the top tasks that a next-generation accountant can do.
Additional Revenue Stream
Next-generation accountants are heavily invested in technology. It means that it is expected of them to increase the technology expenditure that helps boost the business. Also, the use of accounting software gives a competitive edge in the market.
Modern accountants must understand that they need to improvise their accounting practices, analyze the situation and provide a financial output that would double the revenue.
Replenish Intellectual Capital
To become a next-generation accountant one should make smart use of knowledge. Accountants must develop a deep and clear understanding of the use of CPA software. This will help them to relate with clients, colleagues, and business leaders.
The use of accounting software means to keep trying new technology. Since technology changed rapidly, one should adopt accounting practices with time.
Strategic Thinking
In the accounting ecosystem of the future, strategic thinking will be key. With their clients, accountants have long maintained a “hockey stick relationship,” only seeing them during tax and reporting season. In order to transform their client relationships into a more consistent, advisory-based, and collaborative collaboration, accountants need take the time to proactively consider their client connections.
Employ Change Management
Because it makes the ongoing changes to new technology and surroundings more manageable, change management is quickly becoming an essential soft skill for accountants. It is also helpful for those in leadership roles because well-educated CPAs in higher positions may help to mentor subordinates through changing procedures and workflows.
Conclusion
CPA software is designed specifically for accountants because it has all the tools and features needed in order to help them with their day-to-day work. This type of software will save time, money and make you more efficient in accounting tasks. My CPA Dashboard is one of the best accounting software that comes in handy. The next generation accountants can plan and execute a lot of accounting tasks with an easy user interface.
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