Is digital accountancy now a necessity?

The ATO is set to make it easier for small business owners to blend the digital space and accountancy.

Technology has influenced many facets of the world at large, and how the businesses within it function. Many build the core of their processes in the digital space, and it's now entirely possible to have a successful enterprise without any physical presence or storefront whatsoever.

Naturally, the online shift has altered a whole raft of functions, but what impact is it having on accountancy? Well, while the merits of using software to reconcile facts and figures have long been known, more financial processes could be taking place in the digital realm going forward.

Removing the burden of paperwork 

Accounting using tech removes some of the burden when it comes to paperwork. Whether it's documents around business development strategies or even just individual invoices, digitising information can remove the physical burden of administration.

In the future, KPMG explained that changes to compliance could even lead to a paperless tax system by 2020, making it easier to integrate all financial documents together in one, comprehensive digital format.

Shifts with the ATO

To that end, the Australian Tax Office (ATO) explained that it is set to do more in an effort to let businesses across the country leverage tech in their accountancy initiatives. 

"More and more, people are carrying out their day-to-day business online and in the last couple of years a focus of ours has been to make sure our digital services meet the community's needs," explained ATO Deputy Commissioner Michelle Crosby.

The ATO will essentially make it easier for organisations to go paperless, and will encourage more businesses to leave their outdated practices behind and dive head first into the digital space.

Consequently, going forward, it appears fair to say that tech and accountancy will be even more closely aligned, and businesses that aren't exploring how digital solutions can make the upkeep of finances that much easier will likely get behind.

Latest Business Accounting Articles