Technology plays an important role in all aspects of daily life, with no exception to the accounting profession. However, a computer can’t replace an accountant or a tax professional be it today or anytime in the near future.
The computer can be an effective tool, but it can never replace professional judgment of complex accounting and tax situations. But just like any other professionals, accountants are required to encompass the use of computers and other computer applications to improve their productivity and efficiency.
The constant changes of the tax laws year after year can make it hard to keep up with all the changes. An accountant/tax professional needs to stay aware of the changes to the tax law, GST/HST rules, and other compliance regulations. That way one will be able to file an income tax return that best represents the interests of their clients.
Tax software incorporates any applicable changes for the new financial year and ensures that users comply with the rules and regulations passed by the government and enforceable by the Canada Revenue Agency. But even with the most advanced software technology cannot surpass the professional knowledge and professional judgment of a tax professional.
The one advantage of using tax software is that it helps improve one’s efficiency and mitigating the risks of making human mistakes. The analytical tools can identify any anomalies in information that require further review. this is especially helpful to save the pain of the costly mistakes and the time and rigorous process it takes to correct them.
Tax software can also help accountants and tax professionals find new business. The market is changing and it is important for tax firms to provide high-level value-added services in order to remain competitive.
Today, accountants and tax specialists use cloud computing, which runs many applications online instead of storing the information in one’s computer. Cloud computing is one of the most useful technological developments of the last decade.
Whether it is an email communication system, enterprise planning, document sharing, or customer relationship management app, cloud computing has become part of most of the accounting firm’s daily operations. It provides cost-effective solutions that improve the accountant’s productivity.
Security is one of the main concerns when it comes to cloud-based tax applications. That’s why it is important to find a vendor that can guarantee the safety and security of data in the cloud. Not only that, the provider must also provide redundancy to prevent accidental loss of data.
Another technological breakthrough that’s trending in the accounting industry is the use of mobile devices. Small businesses want to record their expenses, manage their accounts, and check their financial data while on the go.
There are some tax apps that have communication features that allow accountants to exchange data in a secure manner. A messaging system allows clients to communicate with the accountants whenever they need advice.
As you can see, technology allows an accounting firm to become more competitive and provide better services to clients. However, automation will never replace accountants and tax professionals any time soon. Maybe computers will replace accountant or tax professional in the future, but it will not happen in this lifetime.