Digital has wedged its way into our lives slowly and surely, from our school to our jobs. The common workspace used to be filled with bulky computers, filing cabinets, and all sorts of knick-knacks. But now, each table you see is only occupied by a single laptop. Why is that?
That’s because everything is now made easier in one simple click. All your files are accessible in a shared Google Drive. You can even edit documents in real-time with other people with Google Docs.
Digital has slowly penetrated every corner of our ever-changing world including the medical field, banking, educational institutions, and so much more. So how will you figure out if it’s a good thing or a bad thing for our generation? How do you get the right balance in the digital landscape, especially for non-digital fields of study like Accountancy? It isn’t easy to wake up one day and learn you have to get with the times or risk falling behind.
Here’s 3 Reasons why digital is both your friend and foe:
1.Digital Transformation is on the Rise, but so is your Marketing Cost:
Before, businesses got around with word of mouth, landline, and several printed ads. But in the business model today, you need a website and an active social media presence to get the attention and trust of clients.
You’ll have to invest in a domain name, a website design, UX/UI, beefy content, finesse user interface, eye-catching graphics, and more.
Studies show that the digital transformation market has grown by 70.8 percent globally in 2017. Those numbers have grown bigger and bigger since then.
Some of the top accounting firms that have invested in the digital market are Accenture, Deloitte, and Cognizant. These big shot enterprises have invested in the rising digital market for a reason. That’s because they look ahead and foresee how swaying from traditional accounting would help them stay on top of their game.
But for Small Medium Enterprises, switching to digital isn’t as easy breezy. You need to invest more money and effort into your marketing costs without the assurance of garnering more clients.
2. E-Wallet and Payments are The New Norm, Alongside Internet Fraud:
Accounting firms have always operated old school style. And that includes handling money like company payroll, accounts receivable, accounts payable, and more.
But of course, times have changed and even money can be stored and kept online. There’s even a rising digital bank called IGN and E-wallets in online shopping websites and transport services. We can even check for our balance online, send payments in real-time, and pay our bills in just one click.
It’s a sweet example of how great digitalization is, gone are the days we’ll fall in a long line to pay in banks. In fact, Accounting Today called 2019 the year of electronic business payments. And its only getting started.
While convenient and time-efficient, putting your sensitive information online isn’t always safe. Hackers and malware can get your banking details and account passwords. Today, plenty of ATM fraud and identity theft cases have increased due to online banking.
When storing your data online, be sure to place it on a site with guaranteed online security. You should also check the terms and conditions if it binds your account with full reimbursement when unwanted situations arise.
3. CPAs Have Advantage in the Digital World, But Tradition Can Still Live On
Digital draw amazing benefits for Certified Public Accountants such as servicing more clients, answering tax queries faster, and being visible to clients in various locations. Yet according to CPA.com, over 97% of CPAs say they are not “Future Ready”.
Why is that?
The accountancy profession has relied on traditional filing, business modules, regulations, and protocols. Breaking the barrier and changing the business landscape that has always worked for them seems like a long stretch.
But really think about it. In the event of an unwanted disaster that has wiped all the physical paperwork in the office, wouldn’t it bring businesses to ease knowing a digital copy readily exists?
We can’t avoid technological advancements, it’s what shapes our future. We have to embrace the change and modify the pitfalls of digitalization. Instead of seeing digital as an ally or a foe, think of it like a long lost friend you didn’t know you needed back in your life.
Sticking to the textbook pen and paper routine will only get you and your firm somewhere, but once you add digitalization to the mix, you can go further. Just do so with caution and a mindset to use digital to your advantage.
