How to use it to your advantage and get your business ahead
Digital adoption is rapidly changing how businesses operate, and the accounting field is no exception. With the rise of digital solutions, companies can automate and streamline their accounting processes, leading to improved efficiency and cost savings.
In this article, we will cover the following:
- How is digital adoption affecting your accounting process
- What can your business do to stay ahead of the curve?
- Why the Canada Digital Adoption Program (CDAP) is a great place for your business to start
How digital adoption is affecting your accounting process:
Understanding digital adoption: Accounting software
One of the most significant ways digital adoption affects accounting is through the use of accounting software. Accounting software, such as QuickBooks and Xero, automate many of the tasks involved in accounting, such as bookkeeping, invoicing, and financial reporting. This can help businesses save time and reduce errors, improving accuracy and customer satisfaction. Additionally, many accounting software programs include features allowing companies to collaborate with other team members, improving communication and decision-making.
Another digital solution that is affecting accounting is the use of online invoicing and payments. Platforms such as PayPal and Stripe allow businesses to send invoices and receive payments online, which helps reduce the need for paper-based transactions. This can make the invoicing and payments process more efficient and make it easier for customers to pay their invoices.
Understanding digital adoption: Digital payments
Digital payment solutions refer to various methods of making and accepting payments electronically, without the need for cash or checks. Some examples of digital payment solutions include:
Credit and debit cards: These are the most widely used forms of digital payments. They allow customers to make purchases online or in-store using their credit or debit card.
Mobile payments: Mobile payments refer to the ability to make payments using a mobile device, such as a smartphone or tablet. Examples include Apple Pay, Google Wallet, and Samsung Pay.
E-wallets: E-wallets are digital wallets that store payment information, such as credit card details, in a secure manner. They allow customers to make payments quickly and easily, without having to enter their payment information each time.
Online banking: Online banking allows customers to make payments and transfer money through their bank’s website or mobile app.
ACH (Automated Clearing House) payments: ACH payments are electronic payments that are processed through the ACH network. They are commonly used for direct deposit of payroll, Social Security payments, and other types of recurring payments.
Cryptocurrency: Cryptocurrency is a digital or virtual currency that uses cryptography for security. Examples include Bitcoin and Ethereum.
Digital Invoicing: Digital invoicing refers to the ability to create, send, and receive invoices electronically. It can be done via email, or via a digital invoicing software.
These digital payment solutions offer many benefits to both businesses and customers, such as increased security, convenience, and speed of transactions. Additionally, digital payments can help improve cash flow and reduce costs associated with handling cash and checks. With the increase of digital payments, organizations can now process payments and transactions more quickly, securely, and efficiently.
Most of all, digital payment solutions should be setup to integrate seamlessly with your accounting and save you tons of time and headaches with reconciliations.
Understanding digital adoption: receipt scanning
Receipt scanning and tracking is another area where digital solutions significantly impact accounting. Tools such as Expensify and Dext can scan and track receipts, invoices, and bills, which can help to automate the expense reporting process. This can save businesses time and reduce errors, which can help to improve customer experience.
Understanding digital adoption: Time tracking
Time tracking is another accounting aspect that is affected by digital adoption. Platforms such as QuickBooks Time, Toggl, and Clockify can help businesses track employees’ time on specific tasks. This can help them better understand their labor costs and improve their billing accuracy. Additionally, time tracking can help businesses to identify inefficiencies and make adjustments to improve productivity.
Understanding digital adoption: Business intelligence and analytics
Business intelligence and analytics also play a big role in how digital adoption affects accounting. Platforms such as Tableau, Power BI, or Looker can help businesses to gain real-time insights into their business performance and identify areas for improvement. This can help companies to improve customer experience by making informed decisions and responding quickly to customer needs.
Online collaboration tools
There are many online collaboration tools available, and the best one for a specific organization will depend on their specific needs and preferences. Here are some examples of popular online collaboration tools:
Slack: A real-time messaging and collaboration tool that allows team members to communicate and share files in a centralized platform.
Microsoft Teams: A collaboration platform that includes video conferencing, instant messaging, and file sharing capabilities.
Google Workspace (formerly G Suite): A suite of cloud-based productivity tools that includes Gmail, Calendar, Drive, and Docs, among others.
Trello: A project management tool that allows teams to organize and prioritize tasks using boards, lists, and cards.
Asana: A project management tool that allows teams to track tasks and projects, and share documents and files.
Zoom: A video conferencing tool that allows for real-time meetings, webinars, and video chat.
Basecamp: A project management tool that allows teams to collaborate on projects, share files, and communicate in real-time.
Monday.com: A project management tool that allows teams to create and assign tasks, track progress, and manage workflow
These are just a few examples of the many online collaboration tools available. It’s important to research and compare different options to find the best fit for your organization’s specific needs.
Digital adoption is not only affecting accounting processes but also having a significant impact on business processes overall. For example, automation and streamlining of accounting processes can lead to improved efficiency and cost savings. Additionally, digital solutions such as online invoicing and payments and cloud-based accounting can make it easier for businesses to collaborate with other team members and access financial information on the go, leading to improved communication and decision-making.
One of the most important benefits of digital adoption is the ability to gain real-time insights into business performance. For example, with business intelligence and analytics, businesses can analyze their financial data and make data-driven decisions. This can help companies to improve customer experience by making informed decisions and responding quickly to customer needs. Lastly, online collaboration tools help your business share tasks, prioritize work, and communication seamlessly with your clients on projects.
What can your business do to stay ahead of the curve?
There are several things that a business can do to stay ahead of the curve with digital adoption:
- Research and evaluate new technologies: Keeping up with the latest technologies and trends in digital adoption is important. Research and evaluate new technologies that can help your business improve its processes, such as automation, cloud computing, and analytics.
- Invest in training and development: Digital adoption requires a significant investment in training and development, both for employees and management. This can help ensure that everyone in your organization is equipped with the necessary skills to use and benefit from new technologies.
- Develop a digital strategy: Developing a digital strategy is crucial to staying ahead of the curve. A digital strategy should outline the goals of the business, and how digital adoption can help achieve them.
- Create a culture of innovation: Encourage your employees to think creatively and come up with new ideas for how technology can improve your business. This can lead to a culture of innovation, where employees are more likely to suggest and implement new technologies.
- Stay agile: Being open to change and quickly adapting to new technologies is key to staying ahead of the curve. This means being willing to try new things, and being prepared to pivot if something isn’t working out as expected.
- Collaborate and network with others: Collaborating and networking with other companies and industry leaders can provide valuable insights into new technologies and best practices. This can help your business stay ahead of the curve and stay competitive in the market.
- Continuously measure and evaluate your progress: Regularly evaluate your progress and the impact of your digital adoption efforts. This will help you identify areas for improvement, and make adjustments as needed to stay ahead of the curve.
- Stay informed: Keep up to date with the latest trends, changes and best practices in digital adoption. This will help you stay informed about the latest technologies and how they can be used to improve your business.
- Speak with an experienced digital advisor!
Why the Canada Digital Adoption Program (CDAP) is a great place for your business to start:
The Canada Digital Adoption Program (CDAP) is a great place for businesses to start with digital adoption for several reasons:
- Access to funding: CDAP provides funding to small and medium-sized businesses to help them adopt digital technologies. This can help businesses overcome the financial barriers to digital adoption and invest in new technologies.
- Expert guidance: CDAP provides expert guidance and support to help businesses navigate the digital adoption process. This can include help with identifying digital solutions, developing a plan, and implementing new technologies.
- Networking opportunities: CDAP provides businesses with networking opportunities to connect with other businesses and industry leaders. This can help businesses learn from others and stay up-to-date on the latest trends and best practices in digital adoption.
- Customized solutions: CDAP offers customized solutions to meet the specific needs of businesses. This means that businesses can work with the program to identify and implement digital solutions that are tailored to their unique needs and goals.
- Focus on small and medium-sized businesses: CDAP is specifically designed to support small and medium-sized businesses. This means that businesses can access tailored support and resources that are specifically designed for their size and needs.
- Encourage innovation: CDAP helps businesses to stay ahead of the curve by encouraging innovation and the use of new technologies. This can help businesses to improve their processes, increase efficiency and stay competitive in the market.
The Canada Digital Adoption Program (CDAP) provides comprehensive, tailored, and expert-led support to help small and medium-sized businesses to adopt digital technologies and stay ahead of the curve. It is an excellent place for businesses to start their digital adoption journey.
In conclusion, digital adoption is having a significant impact on accounting and business processes. Understanding digital adoption and how it’s changing rapidly in today’s business environment is becoming a key competitive advantage.. Working with Argento CPA under the Canada Digital Adoption Program (CDAP) is a great place to start since you get 90% (up to a maximum of $15,000) of the cost covered by the government! In addition, you may be eligible for a 5-year 0% interest-free loan for up to $100,000.
Contact Argento CPA today if you need help with the digital adoption program or optimizing your processes. We are experts when it comes to digital adoption, including cloud accounting setup and ongoing IT support.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.