Photo of Technology Changes for Accountants

Technology Changes for Accountants

Background of Accounting

The famous Italian  mathematician born in the 15th century, named Luca Pacioli, is known as “The Father of Accounting and Bookkeeping” due to the fact that it was he who introduced and described the systems of debits, credits, records, data entries and journals. One of the first publishes ever made on double-entry accounting, was published by Paciolo and called, “Review of Arithmetic, Geometry, Ratio and Proportion.” (translated in English). His work was the foundation of modern day accounting, and his models have since evolved from their original form, but in true essence, it all leads back to Pacioli’s introduction to accounting.

The work of an accountant, before all the computer advancements came forth, was totally manual, hectic, tedious and tiring. All data entries, records, debit and credit transactions, journals and books were maintained manually by human hands. Imagine having to record the number of soldiers being enlisted from a single state during a war! Thousands right? Now imagine having to enter  all their relevant data on a piece of paper, for those thousands of soldiers. Their names, surnames, addresses, cities, hair colour, height, weight, medical weaknesses, all having to be recorded as important data. That’s what a bookkeeper’s job is. Replace all that personal data with numbers and transactions, and you’ve got an accountant’s work. Manual work is always inefficient when compared to a computer. Tracking your entries and records also becomes quite a time consuming activity. If you want to look for a bank transaction for the date 26th May, of 10 year ago, imagine the amount of paperwork you have to run through to get to that one piece of paper. Also, an error could unbalance your calculations and a whole day’s work could go to waste.

Modern-day Accounting

Now, let’s compare how modern day accounting, with the help of computers and software, has become a much easier task. First of all, typing on a computer is much less tiring and much less hectic than writing something down. You could even hire a single person to do the job of five manual writers, and he could deliver results in time much less than the five. Secondly, the computer has helped eliminate a lot of things that accountants used. It has successfully replaced calculators, journals, pens and pencils altogether. The computers and the software have become a single replacement for a lot of problems. It is less time consuming, easier to search and find the mistakes and better than hiring five people.

One such software, Microsoft Excel, is basically what you need to become a modern day accountant. But, Excel is not only limited to basic level formulas, rows, columns and cells. In fact, it is an intensely dense and detailed software, so much so, that the understanding of Excel for a new accountant and an advanced accountant is miles apart from each other. Excel is the go-to tool for financial analysis, accounting, numerical and non-numerical data compilation and so much more. It’s basically what will get you your dream job, if you’re actually very experienced and good at it.

 

Cloud-based Accounting

SaaS (Software as a Service) accounting is a new cloud based platform. It is secure, accessible on any device connected to the internet and not so easily hack-able. It also gives the freedom of accessing your data from multiple locations without having to carry your laptop everywhere. It is much less costly than manual labour, and reduces company IT expenses. SaaS allows the accountants to have more time to analyse data, understand the stats better and be more actively present with clients. Accountants have been known to understand situations better due to the software’s algorithms doing all the calculations and analysis, leaving the humans only the decision making power, saving their time and energy. They come up with better business models, that are based on their own experience and the web experience that lets them explore the possibilities of accounting beyond just entering data sitting behind a desk.

DataDear, is an Excel add-in, and also a Xero app. Xero and Intuit Quickbooks are the leaders in cloud-based online accounting, and Excel is the leading software for processing offline accounting. So DataDear helps you gain access to the best of both worlds, by connecting Xero (and soon Quickbooks) to your Excel spreadsheets.. It is packed with amazing and innovative tools, and we are working towards a future where it is indispensable for any accountant. So far, we’ve been successful in our goals, so DataDear is here to stay and that can be guaranteed from where we are aiming to reach!

One of the hardest jobs in the world, has now become somewhat easy and much more practical and deliverable than before. The stereotypical nerdy or geeky accountant portrait has now vanished and is now leaning towards a more business and goals oriented personality. This is because the field of Accounting has come a long way from manual ledgers and data records in journals.