What is Digital Accounting and why should CAs care?
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What is Digital Accounting and why should CAs care?

  • Highlights

  • Defining digital accounting

  • Steps involved in adopting digitisation

  • Digital accounting tools

  • Go digital with a loan customised for CAs

The ripple of technology has modified the way companies manage their finance. Accounts professionals could foresee the impending change, when Institute of Chartered Accountants of India(ICAI) constituted Digital Accounting and Assurance Board (DAAB). DAAB will construct strategies to manage digital accounting and assurance.

What is Digital Accounting?

Accountancy 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 work-flow 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 road-map 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 nature of services offered by your firm. Embracing digitisation will allow you to expand the service line currently offered. Your role will evolve into that of an adviser or a consultant providing valuable insights to the clients.
• Selecting the right technology: Technology is the supporting pillar of digitization. Choosing the right software can provide you competitive advantage. However, choosing the right platform can become a complex task. Below are a few pointers to consider -
• The size of your firm
• Your client’s requirements
• Your areas of expertise
Compare the available options and their ability to meet your present as well as future needs.
• Hire the right workforce: Remodel your team to fill the necessary gaps. Hire experienced staff and retain them. The right people can accelerate you towards the goal of digitization. Look for digitally savvy staff or provide them the necessary training to transform them into business advisory professionals. Hiring a team of quality professionals can add an extra cost of Rs.3 Lakh to Rs.6 Lakh annually, per team member.

How your practice can benefit from a Loan for CAs

Your practice can manage its day-to-expenses and meet expansion needs with a feature-packed Business Loan for Doctors offering capital up to Rs.35 lakh.

• Software training: Once you have acquired the right software and the right team, it is now time to bring them up-to speed. Most software products come with free online study materials to aid in imparting required training to 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 an easy feat, the cost factor alone can be intimidating for small to medium firms. Integrated document management systems can cost approx. Rs.8000/month per user. E-invoicing software like Dynamic 365 costs Rs.12,179/month per user. General Ledger software like JD Edwards EnterpriseOne Software can cost Rs.7,69,207 and above. However as increasing number of financial institutions are providing Chartered Accountant Loans, you are now better equipped to handle this major hurdle to your digitization goals.

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