“Digital transformation” is a buzzword thrown around in today’s business environment, but what does it really mean? In the context of the accounting department, digital transformation is a process of moving from manual, labor-intense processes and calculations to an automated flow of the data, allowing technology to do the hard work.
The process typically consists of two phases, the first being an assessment or discovery period. This is where all business operations and processes are documented. During this time, reporting problems and other desired outcomes are workshopped. Operations and activities being tracked outside of the accounting system are documented and analyzed for automation opportunities. It is best to have constant team communication throughout the discovery process, sharing findings and opinions as they come to light.
The second phase often requires the deployment of cloud-based software solutions, which can be improved for the business by choosing individual applications that meet its needs and connecting them via software integrations. This is known as a “best of breed” approach, and cloud computing is the critical component in connecting systems. An additional benefit of cloud-based systems is the delivery of information via connected devices anywhere and anytime.
A cloud-based accounting system like Sage Intacct or QuickBooks Online will serve as the hub for the accounting department, with connections to other critical operating systems such as Payroll & Human Capital Management, Point of Sale, Customer Relationship Management, Asset Tracking, Bill Pay, and Procurement.
This article is a selected piece from By the Books: Forvis Mazars' Complete Guide to Small Business Accounting & Finance, which we are excited to release in April 2023. Subscribe to our Small Business list to get future updates and articles and be the first to receive the full guide.