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Technology in [NFP] accounting
Technology adoption in NFP accounting, or any accounting firm, is no longer a groundbreaking concept. Quite frankly, if you’re not using a cloud-based accounting platform by now, we suggest you contact one of our team to get you set up before you read any further.
At Accounting For Good, we digitised our accounting operations a few years back and continue to work exclusively with Xero, the cloud-based accounting software we use within our own business and for our clients.
From accounting system to accounting sustainability
The days of accountants solely focused on spreadsheets, taxes and audits are behind us. Accounting roles have a far more significant position in the workplace as their function and effectiveness have evolved to influence decision-making and strategic business planning.
Years ago, the work of an accountant was process driven. Manually reconciling bank accounts, drafting and mailing invoices (with a stamp!) and expense claims based on lots of little paper receipts were tedious and time-consuming, leaving little time to fulfil an accounting advisory role. It’s not that long ago (let’s say less than 25 years) that we were writing the account details, with a pen, into a ledger book.
Today, accountants have been liberated from much of this manual data entry work, with most of the accounting processes being automated by cloud-based software programs allowing accountants to fulfil more of an intelligent advisory role, often at board level.
Accountants can conduct deeper financial analyses and develop accurate forecasts, which is especially valuable in a not-for-profit environment.
“This is how digital transformation has changed our role as accountants,” says our CEO, Kirsten Forrester.
The cloud-based accounting software trend
At AFG, we have always been dedicated to keeping ahead of the curve – whether advising clients on how they’ve been impacted by the latest AASB amendments or ensuring we embrace technology by leading its integration into business operations.
Moving forward digitally means embracing and learning about software applications and other technologies that can improve business processes. We are committed to keeping our team proficient to a high level so that we can best advise our clients and provide support on tech like our preferred accounting system, Xero.
“Converting manual processes to digital ones has significantly optimised time and operations efficiencies. Using algorithms and technology to improve processes that have previously been open to human error has made a huge difference for some businesses, as systems can automate routine tasks and put access to reports against budget and a wide variety of financial data at the user’s fingertips,” says Kirsten.
Artificial intelligence (AI) in business accounting software
Some of the most exciting developments we’re anticipating are in AI and machine learning. The potential AI can offer the accounting sector will be a game changer and help organisations leap into the future as the software develops an ever-greater capacity to learn and ‘think’ for us.
AI has the potential to assist in decision-making in real time based on insights-driven data. Not-for-profit finance teams will be able to focus on effectively managing cash flow and improving existing systems and processes so your NFP can operate from a position of strength, thanks to critical insights offered by AI technology.
This opportunity will afford not-for-profit entities to focus on growth, reach and strategies to futureproof the organisation.
Work with experts who have embraced accounting technology
Accounting for Good has embraced technology and continues to embrace it in not-for-profit accounting, as it can make the difference between an organisation’s ability to make sound business decisions about the future versus the worst-case scenario of closing its doors. We understand technology and constantly upskill our team to ensure we don’t just know it but can teach others.
Technology flows through the AFG business and operations. Contact us to onboard your not-for-profit organisation into the digital age of accounting.
Read more not-for-profit accounting articles.
