COLLABORATIVE

ACCOUNTING

NUHMAN.M
1ST YEAR M.com AT
INTRODUCTION
Accounting is not just seeing trends in software and automation, but also in terms
of collaborating with their clients. Collaborative accounting may not be a new
term at all, although a new breed in collaborative accounting involves using the
internet and trending technology to work together in real-time regardless of their
location. For example: CPAs can view information of their clients' transactions and
make changes where ever necessary using cloud software and communicate the
same using instant chat platforms such as Slack and HipChat.
Collaborative accounting is the future of accounting. It doesn't necessarily occur
only between clients and CPAs, it applies to a plethora of services available today.
A sale could be made by a sales person sitting at a different location using a
mobile device or tablet and issues related to the same could be resolved by a
manager at a different location. All that needs to be incorporated is the
technology required, tools, and portals in order to carry out smooth flow
information between the collaborators.
How can collaborative accounting benefit your
firm?

 As accounting technology continues to evolve, more and more firms are

embracing Cloud and intelligent technologies to enhance their accounting
process, delivering more value to clients. With cloud-based accounting
solutions, accountants have the ability to log in wherever, whenever and
provide real-time insight to clients – enabling accountants to quickly evolve
from simply assessing data to making informed projections about a business’
financial activity.
 The next step in the accounting evolution is collaborative accounting, a
concept enabled by the wide scale adoption of the Cloud by organizations of
every size.
 Bringing together external accountants, internal accountants and clients, a
collaborative model enables everyone to work in unison on specific data
files, ensuring up-to-the-minute, real-time data entry, reporting and analysis.
What are the benefits of collaborative
accounting?

 As collaborative accounting is cloud-based, no additional software or

infrastructure needs to be acquired, driving the cost of the accounting
operation down. For small businesses, it offers the opportunity to
enhance existing accounting and reporting processes – enabling the
delivery of more value to clients on a regular basis.
According to a CPA Practice Advisor article, a
properly done collaborative accounting offering
should provide:

 High client value

 High profitability
 Balanced work load over most of the calendar year
 Repeatable monthly revenue that can be performed by non-certified staff
 Increased client retention
 Increased value of your firm
 Less tax deadline based work
 Easier business tax return preparation
 Increased client consulting engagements
 More flexibility to you as a firm owner/partner
How safe is my data?
 The most sophisticated cloud-based collaborative accounting solutions are far
more robust than in-house infrastructure and provide access to documents,
data and reports in real-time for effective remote collaboration. Data is far
more secure and confidential and the risk of data theft or damage is
significantly reduced.

The key to financial reporting efficiency

 In addition, collaborative accounting enables accountants and clients to
operate, communicate and manage everything at once, removing the need
for sequential operations. This provides another benefit: efficiency. As clients
and accountants are no longer waiting for information because everything is
real-time, the entire process is streamlined and cost effective.
 Furthermore, as tasks are completed sooner, accountants can spend more
time on elements of their remit that add value.
Picking the right collaborative accounting
solution

 But before your firm can reap the benefits of collaborative accounting, it’s vital
that it picks the right collaborative accounting solution. In order to maximize
productivity, the solution needs to be available via the Internet and possess the
necessary functionalities your accountants need to deliver value to clients. This
might be an extension of your existing services, plus some additional ones.
 Features such as real-time data synchronization that ensure up-to-date
information reporting are fundamental, as well as online/offline and remote
access with routine information updates, meaning any work completed offline
will be updated online once the user is connected to the Internet.
 Another key component is the ability to add-on features to improve accounting
processes. For example, cloud-based add-on tools that include pre-built
modules for accounts, auditing and taxation, make the financial reporting
process incredibly easy.
CONCLUSION
 Collaborative accounting is a model that enables firms and clients to
work in real time – removing the boundaries of time and distance
to collaborate with one another and complete tasks with ultimate
efficiency. ... These changes were also necessary to advance
the collaborative accounting movement.
THANK YOU