Why CAs are Switching to Digital Accounting Software?

As Heraclitus, a Greek Philosopher said 2500 years ago: “There is nothing permanent except change”. This quote stands true for our life as well as the business world. After COVID-19 we are witnessing an overhaul in the way we do business. Amid this transformation, digital accounting technology is the common factor which predominantly evolved industries. 

Some industries embraced the change while others are still finding it difficult to gulp, whereas the finance industry accepted with open hands. The way we do business as well as personal transactions changed completely. 

Also, the recording, maintaining and processing of the transactions transformed. Accounts professionals had a hint of the same when the Institute of Chartered Accountants of India (ICAI) established the Digital Accounting and Assurance Board in the year 2017. 

If you are still thinking whether to introduce digital accounting software and tools into your practice then you are at the right place. 

In this blog, we will discuss the benefits of using only one accounting software and GST return filing for CAs and accountants.

 Advantages of migrating to digital accounting software 

Following are the perks of implementing online GST return filing software for CAs and accountants:

• Super Convenient 

After the development of AI and other digital accounting tools, there’s been debate among industry’s experts about the role of CAs and accountants and how will the technology impact their profession. In this regard, we would say, their role would become less labor intensive, less robotic and focused towards drawing insights from the data. 

Additionally, the new way of accounting makes it easier for you to cater to business requirements effectively. 

• Saves time 

We have heard the adage ‘Time is money’ many times, right? Same is applicable in accountancy services. Digital accounting saves your valuable time, consequently money, by processing the data much faster. 

It also eliminates the need of hiring an assistant for checking accuracy of the data. As the data is automatically recorded, processed and calculated, it leaves no room for error. 

• No chances of data leakage 

Cyber attacks are on the rise in India and around the world. In a scenario like this, worrying about data theft is normal. We assure you that it won’t happen with new-age accounting software as they are protected by multiple layers of security, such as 128-bit encryption, two-factor authentication, and SSL certificates. Some high-end accounting software also comes with data storage at various data centers.

• On-demand financial reports  

Digital accounting tools allow you to create on-demand financial reports with real-time data within minutes. You might think that it will require a certain level of expertise to use this tool, but it is not so. You don’t have to be PRO at technology to fetch the reports. 

In case you are thinking about what reports you can get, here is a list of a few of them: 

• Balance sheet 
• Profit & loss statement 
• Sales summary 
• Purchase summary 
• Stock report

Technological advancements in accounting 

The following are technological advancements are introduced in the accounting industry and how it can help you to level up your accounting practice: 

1. Big Data 

• Generates visual representations of large sets of raw data through charts 
• Aids in finding patterns 
• The process of decision-making becomes easier 
• Automates auditing process 
• Helps in identifying potential risk 
• Leads to data-backed decision making.

2. Cloud Computing

• Stealth data security to sensitive financial data 
• Reduces the need to develop IT infrastructure, as data is stored and processed in Cloud
• Collaboration becomes easier, no longer restricted to geographical location and time 
• Redundant tasks are automated, thereby saving time of accountant.

3. Machine learning

• Identifying key data in scanned receipts/invoices or any other important document 
• Recording data in a required format 
• Helps in the reconciliation of bank statements
• Fast-tracking audit process

4. Automation 

• Requires less or no human intervention 
• Reviewing client’s data becomes easier 
• Saves time by calculating automatically 
• Helps in managing cash flow 
• Simplifies the process of invoicing

Tips for CA & accounting firms 

Before you start implementing digital technologies in your organization, read these tips to go through the process smoothly: 

• Don’t overdo: Don’t implement digital accounting tools for all the tasks at once, start slowly, and gradually keep adding over time. 
• Learn to use: Training your employees to use the tools is an essential step. Provide them sufficient training to use the tool effectively
• Create an ambience: Create an environment that accepts the transformation, and spark the eagerness among employees to know more about the new accounting tools. 

Summing Up 

So, this blog discusses why CAs and accountants should consider using digital accounting software to enhance their productivity. We hope after reading this blog you will seriously consider implementing online accounting software in your practice. We would like you to try Munim GST – India’s fastest-growing GST filing software for CAs and accountants. It comes with over a dozen features. 

Frequently asked questions on digital accounting software for CAs & Accountants 

• What is the most effective accounting software for CAs & accountants?

Market is full of accounting and GST software, not all of them are worth your time and money. We would say, Munim is the best among all. Additionally, Munim offers GST filing and inventory management features. 

• Which online accounting software is the most cost-effective?

You will find many accounting softwares online but none would compete with Munim’s features.

• Is Zoho better than Tally? 

According to popular belief Tally is better than Zoho, looking at functionalities and features. But it is also true that Tally is more expensive than Zoho.

• Can GST be filed every 3 months?

Under the QRMP scheme, all taxpayers having turnover less than 5 crore can opt for quarterly GST return filing.