Your finance, accounting and bookkeeping processes – Are they analog or digital?

Before you answer this question, let us define ‘digital’

Author Ronald Tocci formally defined a digital system as “a data technology that uses discrete (discontinuous) values”

So the term need not be restricted to technology – the internet or mobile and computational devices. ‘Digital’ is a concept. Businesses can today review their operations in a digital form – in other words a set of constituent parts that has independent processes and create independent data.

If your bookkeeping or accounting system is organized into defined process components with defined output, then it can be called digital. If on the other hand bookkeeping to you is what the bookkeeper does, it may be called analog.

When discussing ‘digital’ one really cannot keep technology out, as it was always the key driver of the digitization process. There are two very important questions in today’s cloud and application revolution era.

1. How relevant are digital technologies to your business operations today?

2. How much of change will digital innovation cause to your industry?

I am sure you will agree that the significance of each are undeniable today.

Finally, digitization has contributed value in every area that it has touched, from computation to manufacturing. Broadly speaking,the impact areas have been the following:

1. Significantly improving cost efficiencies

2. Creating new revenue streams

3. Reshaping corporate strategy

There is no reason to believe it will be any different for the accounting and bookkeeping industry. Are you taking the advantage?