Technology and Bookkeeping: The Sustainable Way Forward for Accountancy Firms

The growing challenges in the accounting world, the ever-rising talent shortages, and the global pandemic substantially changed how the accounting industry functions. Ever since, accountants have been more open to embracing new technologies and transforming their practice to survive in the modern competitive world.

The industry’s increasing inclination towards technology, especially for mundane, time-consuming tasks such as bookkeeping, is evident in a 2022 survey by AccountingWEB. The Software Insights Survey queried 175 UK accountants in practice about their technological preferences for the upcoming years. Among the responses, the highest demand was found for bookkeeping, followed by payroll, and Forecasting, Planning and Analysis (FP&A) tools.

Overall, 19% of accountants confirmed that they planned to add bookkeeping tools to scale their firms’ operations in 2023. Much of the demand for bookkeeping software was reported among large accounting firms, with over 31% affirming their addition to their tech stack this year.

Small and medium-sized firms, on the other hand, reported a considerably lower demand as several of them have already transitioned into new technologies with the help of outsourced bookkeeping services UK.

Bookkeeping Trends & Technologies to Look Out For in 2023

Bookkeeping is evolving with digitalisation and the emergence of new technologies. Unlike traditional times, the function is now paperless. But clients today expect more viable solutions that are compatible even with modern working models, such as remote and hybrid. So, let’s look at some emerging trends and technologies accounting firms must look out for in 2023.

Cloud Bookkeeping

Cloud computing has already taken businesses by storm. Owing to its numerous advantages, accountancy firms, as well as outsourced bookkeeping providers, are rapidly making the shift to integrating the technology into their processes.

Cloud bookkeeping involves storing and processing a business’s financial transactions on the cloud instead of files and computer software. This enables accountants to access and edit the data anywhere, anytime, making the process hassle-free.

Artificial Intelligence

With tools such as ChatGPT gaining instant prominence across the globe for their sheer ease of use and accuracy, AI has become the talk of the town. Artificial Intelligence has tremendous scope to transform cumbersome accounting processes, such as bookkeeping and payroll.

For instance, AI can quickly and accurately record transactions in ledgers, minimising human interference and thus negating the scope for errors. The technology helps automate critical processes that otherwise take up a lot of time, making them efficient, quick, and easy.

Cybersecurity

Security is a key issue for accounting firms in today’s digital age. With cybercrimes rampant across the globe, this has become a key parameter for businesses when choosing a bookkeeping partner.

Secure technologies such as blockchain are, therefore, gaining huge prominence among accountancy practices. Blockchain’s data structures have inherent secure qualities that help keep critical financial data safe and protected.

Many accountancy firms also seek to outsource bookkeeping services in order to enable complete data security and risk-free bookkeeping.

Sustainable Bookkeeping for Accountancy Firms

Technology and sustainability go hand in hand. As opposed to a few years ago, organisations are more environment-conscious today. Joining the wagon, accountancy practices, too, now employ sustainable methods to ensure their firm’s success while conserving the environment.

Let’s look at some surefire ways accounting firms can make their bookkeeping process sustainable.

Technology-powered bookkeeping

Traditional bookkeeping involved a rigorous use of paper and ledgers. But modern technologies such as cloud computing have enabled accountancy practices to go completely paper-free, thus promoting sustainability. Additionally, technology helps reduce errors, minimise human efforts, and fuel efficiency. This prevents wastage of resources, making your bookkeeping process highly viable.

Outsourced bookkeeping

Like technology, outsourcing is a reliable way for accountancy firms to adopt a sustainable approach. Outsourcing opens doors to a pool of talent for accountants to hire from. This enables them to create capacity within their practice, facilitating the best use of time and resources.

Top firms providing outsourced bookkeeping services UK offer multiple pricing and engagement models along with customised solutions to suit your requirements. Besides, these resources are completely managed by the outsourcing provider so that you can focus on higher-value services while your extended team takes care of the core tasks. This enables guaranteed time- and cost-efficiency, and optimum use of resources.

A sustainable working model

Post the pandemic, accounting firms adopted different models of working. While some practices went completely remote, others opted for the hybrid working model that combines the best of two worlds. With the recession in motion, these models are set to face disruption, and many organisations are now planning to return to work.

The remote and hybrid work models allow accountants to balance their professional and personal lives. Similarly, outsourced bookkeeping services with offshore teams help support sustainability.

For firms looking to re-shift focus to working from the office, adopting an environment-friendly approach can help. This includes encouraging carbon-free travel, cutting the use of plastic in the office, training employees for sustainability, and more. For such firms, outsourced onshore support services can be a viable alternative.

Are You Ready to Take the Sustainable Approach?

Sustainability is crucial for organisations in today’s world. Firms with a sustainable, environment-friendly approach are more likely to attract talent and clients. So, if you are ready to make a shift to responsible accounting with outsourcing, we can help you.

QXAS, a pioneer accounting outsourcing company, provides tailored outsourced bookkeeping services for growing accountancy practices in the UK. We provide the best talent in the industry, complete email and telephonic support, quick turnaround times, and guaranteed cost savings. Book a free consultation with us today to learn more about our services, or call us at +44 208-146-0808.