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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 Major Differences between Accountant and Bookkeeper 

For people from the non-commercial background, it is very difficult to define the difference between an Accountant and Bookkeeper. Generally, both the line of work is admixed together. 

Here, bookkeepers stand as troopers of the army at the very initial level. All the accounting activities are commenced by them. 

While Accountant’s work is analytical and advisory in some manner and it also based on outsourced bookkeeping services activities. 

On the other hand, role of bookkeepers and accountants are equally significant when it comes to precisely proclaiming financial activities and overall performance of the business. As a result, demand for such professionals is increasing in business organizations throughout the world. 

For better understanding of both the activities let us have glance on the simple definition of accounting and bookkeeping services  



It is a daily activity of recording financial data relevant to business operations in a regular manner. Bookkeeping is the activity of classifying, recording and analyzing business transactions in the pre-determined professional format. 



It is a process of identifying, measuring, and communicating financial information to entitle certain judgments and decisions by the users of the information. Accounting is considered as the activity of informing to other about the economic position of the firm. 

Now it may be clear that what exactly both the activities are about. Let us further discuss some of the main functions performed by Bookkeepers and Accountants- 

The following functions are key components to assemble a strong organization. These are the major activities performed by Bookkeepers: 

  • Recording financial transactions daily 
  • Precisely posting credits and debits daily 
  • Processing invoice, receipts, payments, general ledgers, etc 
  • Payroll related work, 
  • Adjusting multiple accounts and creating adjustment report 
  • Managing accounts payable and accounts receivable operations 
  • Calculating GST. 
  • Lodging and preparing Business activity statement (BAS) 

As we shared before, accountant’s work is more analytical, calculative and advisory in nature and it overlaps many of the above-mentioned expert activities in some manner. 

As their work defines their activities they can not only help in general accounting activities, but they tend to analyze past performance and draw financial projections for your business and guide you through future financial activities to be performed for healthy business operations. 


Services performed by accountants includes: 

  • self-assessment tax, planning, and advice 
  • Preparing financial statements 
  • Interacts with internal and external auditors for auditing purpose 
  • Analyze and review budgets and expenditures, 
  • Business concerned assistance 
  • Corporate financial reporting and compliance 
  • Provide guidance on superannuation funds 
  • Resolve accounting disparities 
  • Analyze and compile financial information to prepare general ledger 
  • Supervise financial management 
  • Develop, recommend and manage financial database through manual documents and computer software systems. 
  • Completing Payroll related works 

This was just a short glance of works performed by Bookkeepers and Accountants, but in reality, it is a huge arena with lots of complex and complicated task to be performed. 

Now let’s see the heart of this article. Yeah, its 6 major difference between the Bookkeeper and Accountant: 


On the basis of purpose 

  • Preparing financial statements 
  • Accountants measure, prepare, analyze, and interpret the financial statement in order to collect and represent financial statement. 
  • While Bookkeepers records all receipts, revenues, expenditures, etc to create accounting ledger. 

On the basis of management role 

  •  Top management takes special interest in accountants work because they are highly concerned with the information and projections which an accountant draws. 
  •  Top management is less concerned with how the bookkeeper functions. 

On the basis of Tools 

  •  Balance sheet, profit and loss account, cash flow statement, and position declaration. 
  •  General ledger, supplier ledger, customer ledger and cash book. 

On the basis of decision empowerment 

  •  Business decisions can be taken on the basis of Accountant’s archives. 
  •  Financial decision cannot be made merely on the basis of bookkeeper’s records. 

On the basis of skills 

  •  Due to the complexity of work accountants require special analytical skills. 
  •  Bookkeepers do not require any special skills as most of the work is in pre-determined formats. 

Hence, the conversation about differentiating Bookkeepers with Accountants could not be ended because it’s a huge battlefield. The Most of the companies are confused which designation to be choose between them. But while choosing any of them the company should review the difference between their functions and activities. Whichever designation fits the requirements of the company should be selected. Most of the time companies opt for Bookkeepers and get outsourced the accounting work from other CPA institutes for financial decisions. This is the more cost effective and convenient way of getting accounting information updated.