Evolution is a part of nature. Even after shaping a concept
or thing to perfection, it keeps on evolving with time and technology, and
accounting is no exception to it. From paperwork in the form of hard copy to accounting
software, accounting has gone through a journey of drastic changes,
modification and evolution. And still, with the passage of time, new and
improved features, concepts and technologies are being introduced in the
accounting industry and one such addition to accounting is collaborative
accounting.
So let’s go through the concept of collaborative accounting
through this article in detail, so that you can know what this form of
accounting has to offer for your business.
What is collaborative accounting?
Collaborative accounting is simply the activity of one or
more than one person involving in the accounting function. But with this
definition of collaborative accounting, you might be thinking that the above-mentioned
practice of accounting is not new as all the firms have one or more than
one person involved in their accounting
function but the new breed lies in taking the concept of collaborative
accounting by using internet and making it a backbone of collaboration.
One of the best examples of collaborative accounting is the
working of CPAs and their client on a real-time basis, even if they are not at
the same location. Whenever an entry is made by the client, their CPAs are able
to see the changes on a real time basis and thus they make the required changes
to it.
What are the benefits
of collaborative accounting?
Real-time
collaboration
The real-time collaboration allows the users to minimize the
need for sequential processes and thus multiple users can work on the same
file, sitting at a different location. This leads the users to be updated with
the latest changes which result in timely reporting and analysis.
Cost Saving
This form of accounting also helps the firm to save cost in
two different ways. First, since the collaborative accounting is all cloud-based,
there is no need to install IT infrastructure in your premise and even the cost
of hiring IT staffs to maintain and manage the hardware and software is wiped
out. The next form of cost saving comes with improved efficiency. With real
time updates, no user has to wait for the information and they also skip the
cumbersome process of moving the information to another user. This result in
improved efficiency and with more productivity within the same time, a great
amount of money is saved.
Enhanced accounting
and reporting process
Small businesses have limited resources and thus increasing
the efficiency of any department within
those limited resources becomes a tough challenge for them. But with the help
of collaborative accounting, small business can easily enhance their accounting
and reporting process which will add a great value to their overall
productivity of the business.
How to build a collaborative
accounting environment?
One of the ideal ways to build a collaborative accounting
environment is through QuickBooksHosting. This fully-functional accounting software offers a wide variety
of accounting tools which are user-friendly in nature and the software can be
hosted on the cloud server also. For example, if you go for QuickBooks Enterprise Hosting,
then all your data and the software will be stored on the cloud server.
After hosting the software, you need to set QuickBooks multi-user mode,
through which different users will be able to work on the same file at the same
time with real-time updates.
QuickBookshosting for small business is the best form of collaborative accounting.
Through the fully-functional software and with the power of cloud, SMEs will be
able to shape their accounting tasks in a perfect way.
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