Here are 5 Ways Technology is Transforming Accounting in the Modern Age Digitizing bookkeeping opens up avenues for access to financial marketplaces and services, opening up various levers to grow businesses
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
It was the fourth customer in a month to raise concern over the credit book of Manoj, who operates a retail store in Hargobind Enclave of Chattarpur, New Delhi. Of late, Manoj had been experiencing a series of challenges ranging from personal problems to financial complications. Perhaps, making Manoj stressed and worn out.
It was then that one of his customers introduced him to a digital accounting application. It has now been over a month and not a single customer has confronted Manoj since then.
With the rise of smartphones in India, a higher influx of digital technologies can be witnessed in people's day-to-day lifestyles. This also stands true for business processes ranging from those of corporates to the ones managed by smaller merchants. So, let us discuss five ways in which digital technologies are transforming merchants' lives with a strong focus on accounting.
1. Saves Time - Calculations takes place in real-time; This negates manual calculations which could have errors. Recalculation is also a time consuming activity. Instead time can be spent on growing the business rather than just managing books and transactions.
2. Convenience: One transaction - two entries between buyer and seller. When connected via the internet, automatic reconciliation of all records/transactions takes place, thereby making it more convenient.
3. Security: Keeping records is key to any business to be efficient. Physical bills are always at a risk of getting lost by both the merchant or/as well as the customer. Retrieval of lost bills and other transactions is as good as losing money. Tech enables all data to be shared on cloud, so it can be easily recovered on any mobile device.
4. Trust is of utmost importance: Earlier, customers and merchants relied on standalone accounting and there was risk of the relationship getting strained due to miscommunication. Today, with technology accounting is accompanied by a layer of communication which increases transparency and builds a long-lasting relationship, which in-turn betters the opportunity for more growth in the business.
5. Financial inclusivity - Digitizing bookkeeping opens up avenues for access to financial marketplaces and services. This access will open up various levers to grow businesses.
India is rapidly changing today. And as the nation has been changing, so are the outmoded conventions –transitioning into their evolved avatar and driving us towards our tech-enabled and ultramodern future.