How to Make Informed Financial Decisions with Tech-forward Accounting Services
Technological interventions in accounting aren’t a novel concept. Did you know that QuickBooks, the popular accounting software, was first launched in the early 1980s by Intuit?
However, recent advancements have taken tech-forward accounting services to a whole new level. We’re talking automation and AI. Then, there’s the cloud — an absolute game-changer in the world of finance and accounting.
Going forward, professional organizations, including accounting services, are likely to adopt new technologies. While 86.5% of organizations plan to incorporate digital platforms and apps, 80% will use big data analytics in their operations.
Let’s look at how these developments in accounting services will affect the way digital marketing agencies, technology companies, and SaaS businesses make financial decisions.
What Is Tech-Forward Accounting?
Tech-forward accounting simply means using technology and digital tools in accounting services. For instance, instead of manually recording financial transactions and creating spreadsheets in your tech business, accounting software can automate these tasks.
Similarly, AI makes predictions, while cloud solutions enable businesses to access real-time financial data from anywhere in the world. The extent of adoption of these technologies has grown in recent years and will continue in the future. In fact, the accounting software industry alone is forecasted to be worth $30.6 billion by 2029.
What Are the Benefits of Using Tech Forward Accounting Services?
Accounting services with a tech-forward approach offer several benefits for tech, SaaS, and digital marketing companies. Here are some of them.
High Efficiency and Time Savings
Gone are the days when accountants had to spend hours on manual data entry and calculations. The advent of technology has cut this time down significantly, allowing for more efficient accounting processes.
According to Accounting Today, tech assistance can save accounting firms up to 9,000 hours per year. That’s a ton of time accountants can use on value-added tasks like data analysis, financial planning, or advising clients.
Tech and SaaS companies can then use the data provided by their accounting partners to guide future strategies and scale their businesses.
Fewer Errors
Despite their expertise, human accountants are prone to making mistakes. A report by Gartner found that 18% of accountants make a financial error every day, while a third of them make a few errors every week. Meanwhile, 59% of accountants make multiple errors on a monthly basis.
In the world of numbers, this could mean anything from a minor discrepancy in a financial report to significant economic losses for the business. Mallory Barg Bulman, the senior director of research at Garner Finance, says that these errors can result in companies making ”decisions based on incorrect data or, worse, issue inaccurate financial statements.”
Fortunately, with accounting tech, mistakes can be minimized and easily caught before they become bigger issues. The same Gartner report also found that technology reduces financial errors by 75%.
Businesses Competitiveness and Revenue Generation
KarbonHQ’s Practice Excellence Report found that leading accounting firms tend to use customer relationship management (CRM) tools and workflow tech 120% to 130% more than their competitors who are not as successful. These findings indicate that the adoption of technology is closely tied to business success and competitiveness.
Similarly, the RightWorks 2024 Accounting Firm Technology Survey found that tech-forward accounting firms generate 39% more revenue per employee. The increment in revenue generation isn’t dependent on the firm’s size since firms of all sizes benefit from technology adoption.
Also, this competitiveness is transferred from the firm to its clients. Therefore, digital marketing agencies, SaaS companies, and tech businesses that work with tech-forward accounting firms are likely to experience the effect of their accounting partner’s competitiveness.
Top Accounting Technologies and Their Impact on Financial Decision-Making
Which technologies are tech-forward accounting firms using, and how do they streamline financial decision-making in tech, SaaS, and digital marketing spaces?
That’s an important question to answer, and the following are some of the critical technologies that are currently transforming the accounting industry and decision-making processes.
Automated Technology
Like any other industry, automation has made its way into accounting. According to McKinsey, 77% of all accounting functions can be fully automated, while 17% can be highly automated. Similarly, 38% of taxation and 10% of auditing can be fully automated.
Accounting automation streamlines data entry, allows real-time reporting, saves costs, and facilitates scalability. It minimizes human error and keeps all records accurate, ensuring correct decision-making in tech and SaaS businesses.
Cloud Computing
Cloud computing enhances efficiency, improves collaboration and data management, cuts costs and risks, and provides real-time access to data. It also helps integrate different systems for better decision-making. The cloud allows business stakeholders from all over the world to access data and collaborate to make informed decisions.
Such a close-knit level of collaboration is imperative for digital marketing agencies catering to international clients and SaaS companies offering services globally. It’s due to these reasons that cloud computing is the most widely adopted technology among accounting firms, with 86% of firms using cloud-based solutions.
Big Data Analytics
Big data is all the hype, forecasted to reach a valuation of $103 billion by 2027. In accounting, big data analytics helps in making business decisions and identifying patterns or errors that may go unnoticed with traditional methods.
In a study, 89% of respondents said that big data is an integral part of digital transformation in their business. Accounting firms can use big data to gain insights into their clients’ behavior and optimize their processes accordingly. Plus, it helps identify fraudulent activities, which saves financial technology businesses billions of dollars every year.
Artificial Intelligence (AI)
No talk of technological innovation can be complete without mentioning AI. A report found that AI is projected to grow by 32% year-over-year in accounting.
Accounting firms can use AI to:
- Find deep insights into financial data of their tech and marketing clients
- Automate tedious tasks
- Harvest marketing and tech big data to inform financial forecasting
- Identify financial patterns and anomalies
- Summarize large content volumes and financial reports
Remember that AI technology doesn’t end with ChatGPT; it’s just the tip of the iceberg. Many of the accounting tools that you already use in your digital marketing, SaaS, and tech companies are now introducing AI capabilities that can make your work more efficient and accurate.
Empower Your Financial Decisions With Tech-Forward Accounting Services
Working with tech-forward accounting firms can give you the competitive edge in your industry that is much-needed for success. At Argento CPA, we are proud to be one of the leading tech-forward accounting firms for digital marketing agencies, tech businesses, and SaaS companies in Canada.
We enable our clients to understand their financial health and make the right decisions based on data-driven insights.
Since we use automation to avoid mistakes and save time, our clients can trust that their financial data is always accurate. We also provide prompt support, responding to your queries with real-time data within 24 hours.
Book a strategy call with us today to discuss how we help your business scale efficiently without compliance or cash flow issues.
FAQs
What is the role of technology in financial decision-making?
Modern technology, such as AI-driven technology, allows financial decision makers to analyze and strategize in real time. It automates the entire process, saves costs, and expedites transactions. This is why at Argento our entire system is tech-forward.
What are the benefits of using tech-forward accounting services?
Tech forward accounting services offer you high efficiency, time savings, fewer errors, businesses competitiveness, and revenue generation. This helps you make informed financial decisions while driving maximum business efficiency.
How do you make informed financial decisions with a quality accounting service?
A quality accounting service conducts a thorough analysis of your business and financial situation and gathers relevant information. The experts then analyze the data, market trends, and identify potential risks to make well-informed choices. Then, they give you multiple alternatives along with their potential outcomes to help you choose the best for your business.