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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.

How accountants need to plan their technology transformation 

September 26, 2018 

As a growing business, becoming digital should be one of your strategies. Technology has been and will keep evolving and will let businesses ride it to their way to success. The accounting industry has been changing for the last few decades and technology and accounting outsourcing companies have a key role to play here. The change has been positive and is helping the accountants grow. Anyone who doesn’t embrace technology will become extinct soon, as their clients, competition, partners, and industry will still become digital and won’t be in the same league as them. 


A research done by McKinsey mentions that 86% of all accounting tasks can be automated using the existing technology. To many, it may be a major threat. However, if these powerful tools of automation and innovation are used correctly, then the strategic value of accountants can be increased manifold. Technology can be used to change the role of the accountant, not replace it. Accountants must re-define their approach to digital accounting so that their skills are not wasted in mundane tasks. By doing so, they can work harmoniously use technology to get a better output. 


The planning that needs to be done to become digital is equally important and unless done right, it may not yield expected results. Either you plan it yourself or decide to do accounts outsourcing to make it digital, it is important to choose the right technology, train your people, to communicate to your client about the change, to plan the addition of new services that you can cater to and few other things that need focus as mentioned below. 


Define goals 

Hasty decisions attributed to confusion and over-complication lead to disastrous consequences. Well-defined goals have to be framed by accountants and be properly mapped out. Accountants should identify problem areas and potential areas for improvement. After identifying them, they have to set targets for their timely completion. This will give them a clear vision of their purpose. 



Accountants must focus on cohesive strategies after fixing the goals they want to achieve. The strategy must contain all action plans and layouts of all plans. It cannot be done in one day as the plan might keep evolving depending on the business environment. Accountants must view their practice objectively and make rational decisions. Hence it is important to decide on the right clients, the right team and the best working methods and processes to be successful during the long haul. 


Increase the service portfolio 

Digital accounting is a broad field which offers accountants a lot of scope to deliver profitable services and also gives them an opportunity to extend and upgrade their existing services. The addition of new services and in turn revenue streams have increased after the surge of digital accounting. Many firms have reported an increase in revenue growth due to this aspect. This will give accountants a significant advantage to use. 


Match your needs and the right technology 

Technology is the central base for digital accounting. Accountants should choose the right software to take care of their daily processes and which can be tweaked to make it in line with the company’s processes. It is important to choose the software based on factors such as the size of the firm, requirements of clients and the firm’s specific area of expertise. The benefits of the software and the changes it will bring about must be clearly explained to the firm’s employees. This can help prevent any employee resistance due to change in software or additional processes. The clients should also be briefed on the adopted technology. In this way the firm can gauge their expectations and work accordingly. 


Recruit to build the core team 

Having the right team on board is key to a successful digital transformation. Talented and hard-working people are required to pull off the job which is why proper recruitment is a must. Digital accounting requires tech-savvy accountants and business advisory professionals with experience in customer service. You may also look at accounting outsourcing companies and use their staff instead of getting into hiring and training. 


Train and get your team ready 

Once the right software and team are finalized, the selected team has to be briefed on the processes of the company and trained according to company requirements. Training is one of the most important elements as members of a team can be taught to tap into their full potential. This will boost productivity. Online educational resources and video lectures can also help team members understand various experiences and along with real-time simulations, get them out of their comfort zones. These efforts will make sure they don’t falter on the job and offer clients the best services. They should be given enough time to take in the learnings and their progress should be routinely monitored. Necessary feedback should be given at the end of every self-assessment tax return. 


Segmentation for better facilitation 

Firms cannot focus on their clients all at once. It is important for clients to be segmented to facilitate the rapid move to the digital space. The idea is to introduce the new software to the initial clients and familiarize them with its usage. Their online presence will attract more clients.  Starting with internal clients is a smart way to increase efficiency as clients won’t have to change their processes. This can be followed by clients who do their own accounting and bookkeeping services. These clients will be ready to avail of any software solution which can streamline their operations. Firms can then be prepared to supply the suitable data necessary for operations. The transition from desktop software to online accounting will be made easier and help clients understand the difference digital accounting makes. 


Educating clients about the change 

Digital accounting is susceptible to resistance as it entails moving accounts online and may question confidentiality. Clients should be assured of the transparency and efficiency of online accounting to make sure they become comfortable with the process. Any queries they have should be answered with and all doubts regarding functioning cleared. The right information can do away with all concerns. 


Going digital is not an easy task and requires careful planning.  This is to avoid any obstacles and bumps on the way. Once the initial struggle is over, it is well worth the wait and to start enjoying the benefits of digitalizing and automating the mundane tasks while giving importance and time to more critical areas. Or you need not get into the entire planning and look for an accounting outsourcing company to plan for your accounts outsourcing and digitization by an expert in the industry. 




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