How Blockchain and Accounting Work Together

Blockchain is a technology trend that is gaining more and more momentum in the accounting sphere, meaning accountants who wish to remain relevant in the accounting field can’t afford to overlook or ignore it any longer. Blockchain is a digital ledger of economic transactions; it is completely transparent and it is also impossible to hack. Blockchain technology is defined as an open, distributed ledger. Blockchain technology works by establishing a continuous record of “blocks” containing a timestamp, resistant to modification or retroactive alteration, to record and verify transactions without any trusted central authority. Blockchain and accounting While we tend to associate blockchain with Bitcoin, the impact blockchain technology can have is much more far-reaching. Rather than companies keeping and reconciling records of a transaction in their own private databases, both sides of the transaction can be recorded simultaneously in a shared ledger—making it easy to see how traditional methods of invoicing, contracting, payment processing, and other documentation could undergo a sea change. For the first time in history, business transactions can occur between entities that don’t know or trust each other, resulting in a significant cost savings in both office and staffing costs. Like with any emerging technology, some are threatened by blockchain technology. Some accounting professionals are concerned that auditing professionals could be put out of business as a result of blockchain technology, making education about the technology exceedingly important for accounting professionals. LIkewise, some argue that blockchain will completely transform accounting. Others aren’t convinced either way. It is important to remember that past technology developments, such as ERP systems and cloud computing, simply changed the role of the accountant, rather than making the profession obsolete. According to the Journal of Accountancy, the following truths, among others, are important to keep in mind regarding emerging blockchain technology: 1. Blockchain [...]

By |2019-02-13T13:07:16-04:00January 11th, 2018|FYIsoft|Comments Off on How Blockchain and Accounting Work Together

More and More SMBs Turning to the Cloud (And Outsourcing) for Accounting

As more and more small-to-medium size businesses (SMBs) turn to the cloud for accounting, an interesting phenomenon is also taking place. As legacy accountants are retrained to learn skills specific to the cloud environment, these accountants also become upwardly mobile, as the skills are in high-demand in the marketplace. With traditional, legacy accounting systems, the struggle was finding qualified accountants to run these systems, but when that goal was accomplished, it meant a stable, large accounting department. In contrast, by adopting cloud-based accounting software, the accounting department is smaller with more frequent turnover—the stable environment is suddenly very competitive, leaving the company vulnerable. The solution Many companies are turning to outsourcing their finance and accounting work. Although SMBs do not require a large accounting team in this new environment, they do require the support of a larger team to mitigate the higher turnover. The SMB market was previously not a productive area for outsource service providers to focus on, but as people and technology both disrupt the industry, the market has become more attractive, and more and more opportunities are arising. Ultimately, companies who would have never previously considered outsourcing their finance and accounting and turning to this option as a solution to the risks of adopting cloud-based software. Where does FYIsoft come in Adopting cloud-based software can seem risky, and it is a big investment. That’s why it is so important to partner with a software provider that understands the risks and works with you to make the transition seamless so your accounting practice can be more productive. FYIsoft has 8,500 users and counting, and the team is ready to help upgrade your software, process, and workflow. FYIsoft’s easy-to-use cloud solutions simplify even the most complex financial reporting demands by automating manual processes and enabling users to get the [...]

By |2019-02-13T13:18:25-04:00December 7th, 2017|FYIsoft|Comments Off on More and More SMBs Turning to the Cloud (And Outsourcing) for Accounting

Why Accountants are Taking Advantage of the Cloud Now

Cloud-based software has opened up a slew of opportunities for accountants, so it is no surprise that accountants are rapidly taking advantage of the cloud. Along with the gift of time, the cloud offers accountants a number of other benefits worth taking advantage of. Why are accountants taking advantage of the cloud? The gift of time Cloud accounting software thrives on automation, which eliminates a lot of the manual data entry that accountants are so accustomed to. By reducing the amount of time spent entering data, accountants find themselves with much more time on their hands, time that can be better utilized for analysis, strategy, and advisory services. Additionally, this automation makes for faster period closes. The accuracy and flexibility of reports With the reduction of manual data entry comes an increase in accuracy. When data is housed in Excel spreadsheets, an error in one formula can lead to a laundry list of mistakes. With automation in the cloud, data is more accurate, and reports are more flexible and streamlined. Any updates to data are made in real time, meaning all users are always accessing the most current financial information. And, reports are automatically formatted correctly to your specifications, every time. The accessibility The traditional 9-5 is being replaced by a more mobile, more remote workplace. Traditional accounting software is installed on each individual’s desktop; however, cloud-based services are web-based, making them accessible from any device (whether it be a computer, tablet, or smartphone) with an internet connection. With 24/7 access, the accessibility factor is a huge boon for today’s accountants. The security Security is incredibly important when dealing with classified financial data, and the cloud stores information on secure, remote servers, protecting you from on-site security breaches. While some accountants don’t feel comfortable knowing that their data is stored [...]

By |2019-02-13T13:26:20-04:00November 6th, 2017|FYIsoft|Comments Off on Why Accountants are Taking Advantage of the Cloud Now

Are Accountants Slow to Adopt Innovative Technologies?

With so much talk about the cloud in recent years, people on the outside of the accounting industry looking in might assume the cloud is the “new normal.” In fact, 57% of accountants surveyed by AccountantsWorld still use the desktop version of QuickBooks. Accountants as a whole are far from migrating to and embracing the cloud. According to PaymentWeek, accountants not taking the cloud seriously will be out of a trade come 2020. So what’s holding accountants back from embracing the sea change happening in tech? Old habits die hard For some accountants, migrating to a new platform seems inherently risky. Many accountants have spent years perfecting their current workflow, and the trauma of migrating data and modifying a brand new system seems nonsensical. “If it isn’t broke, don’t fix it” applies in these cases: why change something that seems to be working? Another factor is fear. The cloud is new, and the idea of data being stored remotely raises a few flags for some. What if the data is unsecure? There is a perceived security blanket when the data is stored on-site on in-house servers, even though cloud systems are often more secure than traditional accounting software. Resisting change is not the answer The cloud is up and coming, whether or not everyone in the industry is on board. Those who resist the change and refuse to learn new ways of working will not survive in the industry. Competition against firms who are using the latest and greatest technology will be fierce, and eventually, insurmountable. Additionally, implementation of the cloud brings many benefits to today’s accountants. Data entry is minimized, errors and data inaccuracy are less common, value is increased, and relationships are strengthened for clients. The cloud is the future. What can FYIsoft do for you There are [...]

By |2019-02-13T13:31:40-04:00October 19th, 2017|FYIsoft|Comments Off on Are Accountants Slow to Adopt Innovative Technologies?

Why So Many Accountants Love Handling their Accounting in the Cloud

Cloud-based accounting solutions provide multiple benefits to accountants, and as cloud-based solutions gain momentum in the marketplace, accountants are finding certain tasks more streamlined, making room for more strategy- and advisory-based roles. Beyond the evolution to advisory roles, what is it about cloud accounting solutions that accountants love? Cloud accounting can increase revenue Perhaps one of the biggest draw of cloud-based solutions is that moving accounting practices to the cloud can increase revenue. As business processes become more efficient through automation, accounting staff can spend more time in advisory services, consulting, and business development. Data backup is automatic Another selling point of cloud-based solutions is that data backup is automatic. Data is not stored on a local server, but instead is stored on secure, remote servers. Limitations on IT staffing and infrastructure no longer stand in the way of the most effective way of managing accounting data. Data is real time Accountants also tend to be impressed by the ability to access data in real time. Data discrepancies between departments or specific users are a thing of the past, as are redundant data files. Mobility for the remote workplace As increasing numbers of employees are working remotely, cloud-based technology is more and more of a draw. Cloud solutions can be accessed from any web browser from any device, as long as the device is connected to the internet. This means data is always at your fingertips, no matter where you are accessing it from. Better decision making With increased data accuracy and easy-to-obtain financial reports, executives become more adept at decision making. Manual bookkeeping always provides a snapshot of the recent past, not the present, and businesses need current information to make informed decisions. Simply put, there is more time to spend on analysis, strategy, and forecasting—and the analysis, strategy, [...]

By |2019-02-13T13:30:20-04:00October 4th, 2017|FYIsoft|Comments Off on Why So Many Accountants Love Handling their Accounting in the Cloud