Submitted by Sestini & Co
| on Tue, 01/02/2018 - 20:19 | In Accounting and systems
, digital tax
Are you still using paper ledgers and desktop spreadsheets as your primary accounting tools? If so, you’re not alone.
According to research from cloud accounting software provider Xero, 78% of accountants still work off computer spreadsheets and 18% still use a paper ledger to manage accounts.
This is despite 61% of accountants believing that the finance and accounting profession is at a technological tipping point and that there is a high expectation that accountants should be up-to-date with the latest accounting technology, with only a small number (6%) of business owners believing it’s not important.
Cloud accounting software company Xero, who are behind the research, decided to recreate a portrait of Luca Pacioli, known as the “father of accounting and bookkeeping”, who first came up with the double-entry bookkeeping system in 1494. The portrait shows him using modern-day cloud technology to highlight the importance of this to the industry.
In an increasingly digital world, it’s crucial that accountants move with the times to ensure their survival. Some of the benefits of switching to digital cited by Xero include better efficiency, reduced errors and increased business revenue.
Xero’s report, entitled “Digital or die”, found that nearly half of accountants are worried about being left behind as technology continues to rapidly evolve. This has more than doubled since 2016. Many of these do not think there is enough education and training available to ensure they can keep up with the pace of digital change and upcoming legislation.
Legislative changes are on the horizon, such as Making Tax Digital, but 25% of those surveyed were not even aware of this at all and small business owners believe it is their accountant’s responsibility to keep them up-to-date with relevant new legislation.
In fact, an astounding 94% of business owners want their accountants to use the latest technology and practices could risk losing business if they fail to modernise. Damon Anderson, director and partner at Xero, has said that small businesses and accountants will need to switch to digital over the next few years, or risk becoming extinct.
At Sestini & Co we’ve been using Xero since we set up in 2013 as well as other technology tools such as ReceiptBank for increased efficiency and real-time accounting for clients. We also work with clients on other systems, such as Quickbooks and Sage Online.
Châteauguay Explore technology options
There are a wide range of business tools available in the cloud and accessible via the internet, including Xero, which we wrote about a couple of years ago.
In fact, IDC named Xero as “the fastest growing financial applications vendor in the world”. The software is easy to use and because it’s available to anyone with an internet connection, companies with dispersed staff can easily access it to review the current cash flow position and other details. There’s even an app for those who need to be mobile.
You can also integrate Xero with other leading software applications such as CRM systems and expense trackers to make running your business even easier.
If you’d like to discuss how this might relate to your situation, call us on 01761 241 861 or email us today. We will be pleased to advise you or to invite you into our offices in Paulton, near Bristol and Bath, for a consultation.