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We are officially in the era of digital transformation where technology has greatly impacted audit processes. This has ushered changes that were hard to imagine as possible about a decade back. While the accounting profession has by and large embraced technology in various processes, it was restricted to the documentation, calculation, stor age and retrieval process. However, this is all set to change as cutting-edge technology dons a greater role in auditing. The clamour for different reporting and financial statements has been growing, and technology has all the right answersv. Taking a leaf out of fintech companies for development of intelligent software Bookkeeping outsourcing company in uk. Processes that will be touched by technology will include those areas where it may be necessary for a machine to understand and use that knowledge to identify complex information. Fintech companies have been able to deploy automated solutions by leveraging the power of AI and machine learning. Auditing will similarly find a greater role for technology, beyond the present functions. For instance, technology has developed to a level where it is possible for AI powered systems to look at all the data of a company that is being audited and identify anything that is amiss. This will help auditors to turn their focus to flagged areas that need more of their attention. Evolving reporting requirements Bookkeeping outsourcing company Present audit reporting helps investors and shareholders understand the financial health of businesses. However, in the context of a data driven world with more and more information available, there is an increasing chorus for auditors to share additional information. Stakeholders are of the opinion that auditors possess more information, than what is actually reflected in the reports. And the demand is for more contextual information from auditors about how a specific conclusion was made or arrive at. Readers want to know how the auditors arrived at a conclusion. This open the floodgates of confusion. Auditors crunch numbers and make conclusions, expecting a reader to do the same is an invitation to chaos. However, technology has the ability to present relevant information in the right form for dissemination, that is in alignment with the overall findings/conclusion. Impact of revisions and penalties corporate secretarial services in ukThe Financial Reporting Council released revisions to International Standards on Auditing (UK)[1], which had more to do with the Code of Ethics. This has great significance for auditors and by extension the companies that are being audited. The changed standards, despite being limited in scope can have implications for stakeholders. This needs to be read in the context of the fines levied by the FRC, on some of the top global auditing firms for misconduct. Even as the dust began to settle over the fines and the circumstances surrounding it, most of the iconic and respected auditing firms commenced an overhaul of their systems and processes, bringing in more technology driven processes to strengthen existing processes. This will be the order of the future, as auditors look towards technology for greater compliance. Moving from sample testing to testing of all transactions In the future, auditors will harness technology to carry out checks of all transactions, and not just rely on a sampling or random check of transactions. While the certainly humungous volumes of transactions may have come in the way of checking out all the transactions in the past or the present, this is all set to change. With the use of the right technology, not only will all transactions be checked, they will be completed at high speed, which means that the process of checking will not add to the time element. And this aspect of checking all the transactions will help auditors to gain more insights about the financial health and other inputs about the organization and the domain it operates. This will be invaluable to investors and shareholders who will now be able to understand reports on the basis of checking all transactions and not just a sample. Sampling has a probability of error, which will be corrected in the future. The need for speed The new techno-social order has turned time on its head. Processes that once took a specific period of time has now been shortened drastically. As a consequence, all other allied processes and procedures are also expected to commence/conclude at proportionate speed. Effectively, this has led to a cascading effect. Audit, resultantly, requires to be concluded faster than ever before. Manual processes do not stand a chance of delivering results at speed or with the accuracy and precision required. While it is impossible for technology, as it stands now, to replace the power of human intuition in tasks as complicated as auditing, many of the tasks that are repetitive or rote in nature need to be entrusted to technology and automated processes to be able to meet the deadlines. Leveraging the power of blockchain for cost effective audit processes Blockchain is the buzzword that will continue to hold sway over businesses well into the near future. And by virtue of being a distributed ledger, blockchain is the natural bedfellow for auditing processes. Auditors need not seek information or wait for clients or third parties to furnish statements, or any documents for verification and cross-verification. Auditors can simply carry out the verifications from blockchain ledgers. With the power of offering verifiable and immutable transactional information, these ledgers will save a lot of time and money, in addition to the assurance of offering information that is accurate and free from errors. This is basically, because the transactions themselves would have been carried out only after fulfilling the criteria or conditions of all –parties involved in the transaction. Analytics only as good as the data that is fed Analytics can be only as good as the data that is fed, which means that standards also need to improve so as to offer data that is of the right standard. While systems will be powered to detect anomalies over entire transaction history, the advantage of perception that is available to the human mind and the logic of perspective will be unavailable to technology driven systems. This will make it mandatory for records to conform to certain standards. The quality of the data and the processes or technology that is available to bring in the data from many sources needs to be advanced so as to prevent gaps in data capture and its use. The need for more regulations and standards Past processes had stakeholders trying to catch up with the regulations and standards. For instance, auditors and organisations had to fulfill or meet the standards and regulations as laid down and the need of the hour used to be a scramble to meet the standards. However, with changes in the way business is conducted, there are multiple issues which cannot be met or fulfilled by existing standards. This turns the whole equation of regulations and standards on its head. Regulations and standards are now expected to keep pace with the developments and evolving changes in the world of business. Till the regulations and changes are in place, auditors and businesses will have to work within the contours of existing regulations which may not be very easy considering the inherent differences among domains. Conclusion: Auditing is a proven facilitator for growth, in addition to meeting the requirements of accounting and financial reporting. While nations have their own set of policies about the size of businesses that need to be audited or not audited, it is a proven fact that auditing is one of the pillars of growth of a business. Technological innovations will assist the acumen of humans to bring about greater accuracy, improved reporting and faster conclusion. Auditing will not be limited to random checks but will encompass the whole history of transactions for specific periods. Contrary to popular belief, technology will not take the place of humans, but will help humans in their deliverables.

5 ways Outsourcing Accounting & Bookkeeping can transform small business in UK

In recent times we have witnessed significant number of people parting their ways with the job and taking their own route to achieve something on their own. The people with firm determination and sheer dedication have come forward to make the world a better place. 

Whether you belong to the creed of the initiator or founder of an established business, all of you tend to miss on one point for sure, which is an effective allocation of responsibility. Yes, you heard it right. Many a time, we tend to assume that we can shoulder some responsibility like accounting and bookkeeping services, which we never took up before. We consume our most vital time in undertaking some tasks which would have been executed by a relevant expert in considerably less time. 

That’s where the bookkeeping outsourcing company world comes down to rescue your business. Nowadays, every other service is getting outsourced thanks to high-speed internet and cloud services. Be it engineering, marketing, IT or Accounting, all of them are being sent overseas at relatively better quality and lower price. 

The common misconception that prevails amongst the entrepreneurs is that tasks like tracking the finance should be done by the employee of the company. And executing that way, they spend huge resources initially to find the right employee and then to continuously motivate them and keep them with the company. At the same time additional resources are spent to provide training and keeping their skills up to date. 

When you are just commencing the business, you need to realize that instead of undertaking it in-house, you can get it done by the firm which has dedicated experts and tools. Especially when we talk about small business, that’s the place where you can save humongous time, effort and of course, cost as well. 

Following are the 5 ways in which outsourced accounting can help small businesses transform their businesses 

Availability of elite team: 

Outsourcing accounting companies  companies create a pool of large resources with some very specific and niche skills sets to provide services to their customers. They don’t rely on people with generic skills sets as they are able to use these very highly skilled people across number of different accounts and hence are able to afford them. On the other hand, inhouse accounting team invariably will have to rely on generic skill sets as it is virtually impossible to hire a separate staff for all the niche requirements. 

Open to advanced accounting systems 

Being a small business, it becomes very difficult for you to use high standard accounting software to fulfil the needs. However, when you choose to outsource the work to specialist firms, you gain the access to all those mighty bookkeeping and accounting systems. This would not have been possible otherwise. That’s the beauty of the outsourcing alternatives you get at considerably less cost. 

Saves from payroll problems 

Often, payroll service providers in uk we tend to hire people who eventually prove inefficient in doing the allocated tasks and we must bear with it due to employment norms. Both finding people with the right skills and getting rid of people with not the right skills is hugely time consuming and complicated tasks. This can be avoided at least for accounting related tasks if you were to choose outsourced provider. 

Going to the outsourcing accounting company with the references from your friend or business associates can be more reliable than any other source. Find out what accounting firms they go with and what they recommend you for your business. 

Boost the effectiveness 

Saving on costs by through outsourcing is only the tip of the iceberg as some of the real benefits are realised after few months in form of better quality and the speed with which work is delivered. This will help you deliver better customer satisfaction/experience to your customers leading to more repeat work and hence better stickiness. 

Efficient Budget Management 

The overheads in any business are only going up these days, hence when you give the key to drive your accounting work outside the company, you are cutting one overhead less. It gives you time to spend your energy to win work for the company which is far more important to its growth. When your business is in growing phase, it takes the efficiency of your business to next level. And, justify the execution of bookkeeping tasks in accordance. 

All in all, accounting and bookkeeping companies prove enormously beneficial for your business, regardless of the sector, you’re dealing in. 

Contact us today for a review of your business accounting practices