Accounting has transformed dramatically in my lifetime. We have gone from clunky desktop software to cloud-based solutions with endless apps. Most folks do not dream about accounting or software; I don’t either as a rule. However, last night I did. And upon waking, I realized just how far we have come. How much transformation have we seen in accounting?
When Desktop Computers Were New
When I first started working in accounting, desktop computers were a new thing. When I purchased my first computer, It was big, bulky and very expensive. It was DOS based and my amber monochrome monitor was the latest innovation.
Upon going to the local computer big box store there were aisles of software. I found it a lot of fun to look through all the software options that were available. I purchased several accounting software programs to test them out and see which one I wanted to master.
Over the years, the specific programs I used changed. First, they were DOS-based, and later Windows-based. I remember how strange it felt to use Windows at first. Moving your mouse to get to different programs seemed so foreign.
Hosted Software
Just as I was mastering Windows-based accounting, another innovation emerged – hosted software. This marked the beginning of a fundamental shift on how accounting professionals would manage financial data.
The first time I accessed a client’s accounting data remotely it felt like magic. It gave me a glimpse into what the future held for accounting. I loved working on clients’ accounting without physically having to drive to them. Collaborating became so much easier, and I knew this was a pivotal shift in working with and supporting clients.
I worked for a CPA firm that hosted their clients’ software on a server that both we and the clients could access. But the responsibility of hosting others data was more than I wanted to take on on my own.
I heard of a company that hosted software. This changed everything for me and my business as I was able to move my clients’ accounting to a hosting site. I worked this way with clients for many years.
I had no idea at the time, but when I signed up with this hosting company, I was only their 10th client. Looking back, I was at the forefront of a major industry shift!
Cloud-Based Software
I began hearing about accounting software that was cloud-based. At first, I wasn’t sure I really needed this since working with a hosted environment worked so well. But some clients came to me in the very early days of QuickBooks Online (QBO) and I began using that with them. I tried a few other early cloud-based accounting solutions in the early days too.
At an accounting conference, I heard about a new accounting platform, Xero. Within two months of hearing about them, I set up my own business books, went through their training, and became a Xero Partner.
There were a lot of bumps in the road when working with both QBO and Xero in the early days. However, not having the headache of being responsible for a hosted environment and the ability to have clients and staff working in the same system was the direction in which I knew I wanted to work. And over time the platforms just got better and better.
Once the manual, time-consuming tasks were automated, I had more time to dig deeper to discover the story behind clients’ accounting. My conversations with clients changed. Rather than focusing on what happened in the past, we began having conversations about where they were going and what changes were needed to reach their business vision.
Adding Apps
One of the biggest game changers in recent years is the seamless integration of apps with accounting. Apps have revolutionized accounting by automating manual tasks, streamlining workflows, and customizing financial management to meet specific needs.
With so many apps available, there is no way anyone can keep up with all of them. Over the years I have tested many. Over time I realized that you cannot master everything, so we have paired down to a handful of basic apps that we use in conjunction with the two cloud accounting platforms we use, QBO and Xero.
Some apps are more universal in their application, such as for payroll, receipt capture, and bill paying. Other apps might be for a specific industry or an out-of-the-ordinary need. The best apps are ones that solve your needs, save time, are affordable, and integrate well with your accounting platform.
Looking Back
Looking back, the transformation in accounting is nothing short of remarkable. We have gone from clunky, isolated desktop software, to intuitive cloud-based solutions that provide real-time collaboration and automation. What once felt like a dream is now reality.
In the dream I had last night, I was persuaded to try a new desktop accounting software solution. When I woke up, my first thought was – why would I ever go back to using desktop software? I love working in the cloud! The freedom of being able to work with and access my clients’ information from anywhere and anytime is the best way to work.
It makes me wonder – what’s next? Whether it is AI-driven accounting (some of that is in place now), blockchain, or something else, no doubt technology will continue to reshape the way we manage accounting. And that is very exciting!
Do you feel like your business could use an accounting transformation? Contact us to set up a complimentary call to discuss how we can help!