We are unlikely to see Hover boards or flying cars anytime soon but what will our accounting processes and infrastructure look like, and more importantly where will it all be heading on 21st October 2015?
Nearly thirty years ago back in 1985 when Marty McFly hit 88mph the world was a simpler place. Satellite TV was a thing of the future, there were very few mobile phones, and the internet was virtually unheard of.
In 1983 small businesses’ bookkeeping was mostly still being done by using actual books. If there is one big thing I have learnt from my 30 years in the accounting profession it is – “that change is constant”.
By 1993 most small businesses were using accounting software packages – clunky programmes sitting on a desktop computer in the office. Information was either printed out on concertina computer sheets with holes for the spool wheel cogs on either end, with the tech savvy using floppy discs as well.
Ten years on by 2003 accounting software packages were becoming more developed and a wider choice was available in the marketplace, laptops were more in vogue, and the CD had replaced the floppy disc. Accounting information was being passed around by email, or uploaded through secure portals.
Another ten years on in 2013 and we are now in the mobile age. The software solutions that support business bookkeeping are now available off site on a subscription, bringing benefits like improved data security, automatic backups, no upgrade needs and access from anywhere, by anyone you authorise.
So where to next? When Emmett Brown steps off that flying steam train in 2015 and his conversation with Marty turns to accounting for the DeLorean, what software and hardware are they likely to be using? My guess is that it will be cloud based with integratable apps for all sorts of business functions – stock control, customer relationship management, workflow and project management, point of sale, banking and accounting all passing information seamlessly between the programs and freeing up the business owner to concentrate on what they do best – running the business.
A small business survey undertaken by MYOB recently revealed that small businesses that use cloud computing were 106% more likely to have seen a revenue rise in the past year, but that only 16% were actually using it.
So the message is clear – adapt to the changes that are around you, make it a priority to find out what is out there for your business, and reap the rewards from new technologies. If you miss out, you won’t be able to go back and recreate those additional profits – without a flux capacitor at least!
By Business Development Advisor Peter Morgan
© Munro Accountants 2013