Digital Accounting Set To Reform The Modus Operandi For SMEs in India
The tremendous growth of a task when combined with a prefix of 'electronic', has become the need of the hour to replace traditional and inefficient accounting methods with a more digitalized and efficient accounting methods.
For any kind of business across the world, accounting has been regarded as the mirror image reflecting the health of an organization in the industry. Major or minor, each financial transaction that takes place internally and/or externally is not only monitored and recorded but also evaluated and analyzed. Before the onset of the industrial revolutions and the advent of high-speed technology, accounting was dictated by manual and traditional methods.
Traditionally, accountants made use of paper ledgers and journals to record all financial records and data; however, they are incapable of keeping up with the demands of the technology-driven industry we are a part of today. We have already witnessed the tremendous growth of a task when combined with a prefix of 'electronic', which is why it has become the need of the hour to replace traditional and inefficient accounting methods with a more digitalized and efficient accounting methods. It is during the ongoing global crisis of the pandemic where digitally run SMEs managed to survive the lockdown since all they required was a device and an internet connection but, it is the traditionally run SMEs that faced major difficulties. It is imperative for them to adopt digital accounting methods if they wish to pull through not only the pandemic but also the post-pandemic world we will be witnessing soon.
With a one-time investment in the software, devices, and internet connection, digital accounting cuts down the costs of books, journals, and paper in the long run. Not only are physical records space-consuming, but they are also prone to damage and infringement. However, with digitalization, they are safely stored on the virtual space of your device. And these applications, they come with a plethora of features that SMEs could take benefit of. Businesses not only require strategies, but also genuine connections between traders and consumers. Transparency is one of the greatest benefits of digital accounting, especially when trustworthy connections are required for SMEs to catalyze their growth.
Manual accounting although done by professionals, always leaves some room for human errors in calculations, which is why copious amounts of time is spent by these experts in ensuring that the numbers they have entered are correct or not. At the same time, if there is an error in calculations, it will take even more time for them to locate the exact position when the miscalculation was performed. These activities result in tremendous amounts of time that could have used to think for the betterment of the company instead of it being utilised in mundane, and repetitive tasks that an application could easily perform with much higher accuracy.
In 2015, our Honourable Prime Minister Shri Narendra Modi, called for a Digital India campaign, where he wished for every citizen in our country to be digitally and electronically empowered, connected to the highest speeds of broadband, and providing the industry and its elements an opportunity to make India digitally strong. Our PM's 'Vocal for Local' campaign also calls out to all our local SMEs to contribute into the country's economy, and the addition of technology to their arsenal will unlock greater benefits for them as well as our country.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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