How Technology Has Changed Bookkeeping

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How Technology Has Changed Bookkeeping

Category : Training , Xero

Time for Training

The responsibilities of bookkeeper have never changed in thousands of years. They record all economic activities including all transactions and make sure everything is neatly and properly documented for future reference. Bookkeeping jobs remain the same, but the tools have evolved from simple quill and pot of ink or pencil and paper to modern calculator, computer, and cloud storage services. In the most basic sense, technology refers to anything that makes the job easier. Back in the days of quill and ink, they were also considered cutting edge technologies. As business is getting more complex and involving large frequent transactions, however, bookkeeping jobs are more demanding as well. They require the proper tools to handle all the complicated record-making systems.

Accuracy

 All those technologies provide leverage for bookkeepers to improve accuracy in every detail. Bookkeeping is not merely about writing down all transactions, but also about ensuring that they are accurate. It makes no sense to document transactions without great attention to precise financial calculations. Invoices have more than a simple line item and there are also taxes involved. In the old days where transactions used only cash (or even barter system), pencil and paper are enough technologies, but in the modern world where credit card and cryptocurrency are all around, more capable technologies with automated calculation systems are indispensable.

Speed

Human mind and physical properties have limitation to how fast they can operate, and this is where technology comes in. It is never enough to memorize all transactions with all the different amount of money so keeping proper documentations are the only workaround. When business reaches a point where hundreds or more transactions take place on daily basis, bookkeepers need more than pencils and papers; they need faster way to handle the jobs so they use calculators and computers. Bookkeepers are required to do their jobs quickly and make reports in a timely manner.

Cloud

 One of the latest innovations to hit the bookkeeping world is cloud service. Instead of installing the entire accounting program to an office computer, cloud accounting allows bookkeeper to save the record in the cloud, where there is nearly zero possibility of damaged or missing data. In most cases, cloud storage act as backup measure; redundancy makes the data safer. Another advantage is that it is possible to access the data from another computer from everywhere via Internet because they are not stored only on a physical hard drive of a computer.

The Need for Basic Training

 Accounting technologies that come as both hardware and software still require capable bookkeepers to make them work. Even the most expensive computer equipped with an entire range of accounting software makes no use in the hands of untrained bookkeeper. At the end of the day, it is always the bookkeepers who should posses the expertise to take advantage of technology at their disposal. For a complete range of training courses in modern bookkeeping and the use of cloud accounting for business, 360 Accounting provides comprehensive lessons for all levels from beginners, intermediate, to advanced bookkeepers to improve their skills.


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