Technology has modified the way companies manage their finance. Accounts professionals could foresee the change when the Institute of Chartered Accountants of India constituted the Digital Accounting and Assurance Board (DAAB). DAAB constructs strategies to manage digital accounting and assurance.
What is digital accounting?
Digital accountancy is a system of accounting designed to meet the needs of the current digital economy.
How to transit into digital accounting?
Review the present scenario: Consider remodeling the firm’s strategy to meet the pre-requisites of digital accounting. Take an objective view of your firm to analyse the processes and workflow involved. Determine whether you have the right clients and resources to adopt a digitisation process.
Define the goals: Before diving head first into the sea of digitisation, outline the goals you wish to achieve. It is important to create a roadmap to your end objective. Assess the firm’s areas of improvement and the steps necessary to transform into a digital practice.
Reassess the services offered: Review the services your firm offers. Embracing digitisation will allow you to expand your service line. Your role will evolve into that of an adviser or a consultant providing valuable insights to clients.
Selecting the right technology: This is the supporting pillar of digitisation. Choosing the right software can provide you with a competitive advantage. However, choosing the right platform can be complex. Below are a few pointers to consider:
- The size of your firm
- Your client’s requirements
- Your areas of expertise
Compare the options available and their ability to meet your present and future needs.
Hire the right workforce: Remodel your team to fill the gaps. Hire experienced staff and retain them. The right people can accelerate you towards the goal of digitisation. Look for digitally savvy staff or train them to transform them into business advisory professionals. Hiring a team of qualified professionals can add an extra cost of Rs. 3 lakh to Rs. 6 lakh annually, per team member.
Software training: Once you have acquired the right software and team, you must bring them up to speed. Most software products come with free online study materials to train the workforce.
Tools of Digital Accounting:
- Integrated document management systems
- Electronic ledger keepers
- Automatic recording and online storage of invoices
- E-invoicing
Digitisation is not easy. The cost alone can be intimidating for small to medium-sized firms. Integrated document management systems can cost approximately Rs. 8,000 a month per user. E-invoicing software like Dynamic 365 costs Rs. 12,179 a month per user. General Ledger software like JD Edwards Enterprise One software can cost more than Rs. 7,69,207. With an increasing number of financial institutions providing chartered accountant loans, you are now better equipped to handle this major hurdle in your digitisation goals.
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