As you continue traversing Australia’s digital economy, you must learn to adopt modern tools and systems to streamline your financial processes, reduce human errors and make smarter decisions. Thus, the importance of accounting innovation. 

In this article, let’s explore what accounting innovation is all about, the benefits of embracing innovation in accounting and some practical tips to automate your accounting processes. 

Accounting innovation is a necessary step for Australian businesses as the country continues to traverse the digital economy.

 

What is accounting innovation? 

Accounting innovation is the process of modernizing traditional accounting processes using technology and digital solutions. Aside from the use of tools, accounting innovation also encompasses modern business concepts such as the use of blockchain technology and robotic process automation.  

In other words, accounting innovation is about upgrading your accounting technology and processes, including the capabilities of your employees. 

 

Benefits of innovation in accounting 

Here are the reasons why you should innovate your accounting: 

  1. Increased productivity

With advanced tools and systems, you can automate routine and time-consuming tasks such as data entry and reconciliation. This will improve your organisation’s overall efficiency, enabling your employees to accomplish more in less time without the risk of overworking and burning out. At the same time, it also lets them focus on more value-adding, strategic projects. 

 

  1. More accurate data and reports 

Automation yields better accuracy. If you set up your accounting tools correctly, you can rest assured of getting precise data. It’s because digital accounting systems perform calculations automatically. Therefore, it reduces the risks of human errors.  

As a result, the financial reports you’ll prepare will also be based on accurate information. 

 

  1. Higher cost-savings

Cost-cutting is one of the long-term benefits of accounting innovation. By using technology for accounting, you can eliminate manual processes, lessen your paper-based documentation, reduce the need for manual labor and streamline your operations. 

 

  1. Real-time financial insights

Modern accounting solutions provide real-time access to your financial data. Moreover, they’re also capable of data-sharing. Because it’s available online, you can view and update your numbers anywhere you go using portable devices like laptops and mobile phones. It also lets you collaborate with your accounting team remotely. 

Through these capabilities, you can make timely decisions and immediately respond to market changes. 

 

  1. Enhanced competitiveness

Lastly, innovating your accounting processes also helps you keep up with market demands and regulatory requirements. After all, your competitors may already be embracing digital accounting processes. Instead of getting left behind, it’ll be better if you can be the proponent of financial transformation. 

 

Read Next: What Does the Digitalisation of Accounting Mean for Your Business?

 

Accounting innovation ideas 

Ready to improve how your accounting department works? Here are some accounting innovation ideas to help you get started: 

  1. Assess your existing capabilities

A thorough look at your existing accounting processes is the first step to doing accounting innovation right. Review the tasks you’re currently doing. Identify which tasks can be automated, and which ones should be processed manually. 

Next, examine your internal capabilities. Are your accountants knowledgeable enough about the use of modern accounting tools?  

From there, you can identify the ideal digital accounting solutions to fit your business needs. It also helps you determine if you need to onboard another employee who is skilled in using the software you’re planning to use. Otherwise, you may want to work with a consultant who can assist your team throughout the process. 

 

  1. Consider cloud accounting software 

Implement a cloud-based accounting system to streamline your financial processes. Look for software that integrates seamlessly with other business tools and offers features such as real-time reporting, automated invoicing and bank reconciliation. 

 

  1. Invest in robotic process automation (RPA)

Identify manual tasks that can be automated using RPA. Implement software robots to handle repetitive processes like data entry, report generation and invoice processing. 

 

Interested to learn more about Australia’s Digital Economy Strategy? Check it out here. 

 

Innovate your accounting today 

Innovation breeds growth. Due to human’s intrinsic curiosity, we’ve reached the stage where the manual accounting processes we’ve been used to doing can now be completed by machines. Despite these developments, modern tools still require human assistance to function properly. Thus, the importance of upskilling and reskilling your accountants. 

If you’re in the process of innovating your accounting department, and you need some expert support for its effective implementation, our accountants at ABJ Solutions can help.  

Contact us today to learn more about our business intelligence-powered solutions.