Role of Accounting in Business
Accounting involves recording, calculating, and communicating financial or non-financial facts concerning a business or corporate entity. Accounting is done by accountants who have evolved. In the initial stages, all these functions were done using a sharp mind, calculator, ledgers. Now IT firms have stepped in to ease the process of accounting. So the accountant is now being assisted by technology.
When is IT required for Accounting?
When businesses grow bigger, there is a load of information to be accounted for and kept updated. So, instead of hiring more and more hands and brains to take care of it, the easiest and quick way is to outsource the accounting work to an Accounting IT firm. The accountants working in this Information Technology (IT) firm are competent. They utilize the recent technologies, software to account for the business transactions, tax payments, and growth incentives. In short, Information Technology has become an accountant’s technology.
Is Computerised Data Safe?
IT uses computers and virtual storage centers to keep the business data stored, shared, analyzed, and updated. The IT firms ensure and guarantee the safety of the data stored under their client’s name. They have inbuilt software to alert them of any malfunction, breach, or mismanagement of data. This security software keeps on upgrading with their newer versions. The same goes for the advancement of data leaking software. They are held accountable for the loss of data.
What do Businesses feel about it?
The IT firms accounting for a business or corporate establishments make sure that the data is in their safe hands and work to meet the client’s expectations. The client pays money to get the accounting work done by IT firms. After all the client’s satisfaction is the top priority as they get paid for their services in accounting. In that sense, it comes under professional ethics to treat the information right. And businesses have given a thumbs up to outsource the accounting services to an IT company. That way they can be tension free from dealing with complicated and bulky records of information.
Some of the popular accounting software used are Xero, Wave Accounting, Sage Intacct, QuickBooks Online, etc. The accountants working in IT firms knowing such software have greater scope to get appointed as the accountant of a business or corporate firm. Rather than the ones who know accounting in terms of traditional and obsolete ways. The software assists in managing the old data as well and comparing it with the fresh statistics of the client’s company.
The client looks into the accounting firm’s performance and goes through the experience of other clients before deciding to hand over the accounting works to IT firms. In that way, the client can filter out faulty ones and go with a responsible and genuine accounting firm.
With the world regulated by the money economy and big capitalistic institutions
(MNCs) making and moving money around in bulks of transactions the accounting of these is a must. It is in respect to taxation, to avoid money laundering and keeping a healthy money economy in the country as well as the global economy. Since each nation’s economy is interconnected.
With these, there are many rules and regulations to be checked and followed. The client can rely on IT firms handling the accounting as the accountants working in it are experienced and responsible. The client can sit back and focus on corporate social responsibilities and more urgent matters.