Page 50 - CMA Journal (Nov-Dec 2024)

Focus Section

• Capable Leadership: Delays and failures often occur due transform accountants into strategic advisors, playing a vital
to incompetent project management, which can result in role in organizational decision-making. They handle
significant financial losses. Therefore, it is vital to appoint complex data not only for regulatory compliance but also to
a skilled and capable project manager to oversee the manage business activities strategically and prudently.
transition.
• Scribe – Simplifies process documentation by converting
The Benefits of Digitalization tasks into detailed, easy-to-follow instructions with
annotated screenshots.
Any form of physical paperwork can be digitized by
scanning documents, converting analog data (such as audio • Xero – An online software that facilitates sharing,
and video recordings) into digital formats, and transforming enhances workflow efficiency, and provides a
manual processes into digital workflows. This shift benefits comprehensive view of all business activities in one place.
anyone handling data, especially accountants, who deal • QuickBooks Online Accountant – Streamlines
with large volumes of transactions scattered across various
bookkeeping, reduces errors, and ensures timely
formats. These transactions are compiled into financial
financial closings. It allows performance comparisons
reports, which are then analyzed to support critical business
with other local businesses and provides secure business
decisions.
communications and information sharing with
Manual compilation of such vast data requires significant customers.
human effort, with a high risk of errors that must be
• Google Workspace – Offers data storage, analysis,
repeatedly checked and corrected. This involves complex
budgeting, security, and confidentiality features.
calculations, formulas, and ratios to produce final
documents and financial reports. Fortunately, • Expensify – A useful tool for real-time expense tracking
advancements like simple calculators, scientific calculators, and control through reporting, approval, and payments. It
computers, digital tools, and Artificial Intelligence have automates reconciliation and establishes expense rules.
greatly simplified these tedious and mentally taxing tasks. • DocuSign – Enhances regulatory compliance through an
Advantages of Digitalization of Accounting Practices electronic signature platform that improves workflow
efficiency. It accelerates document turnaround time and
• Efficiency – Faster processing of large amounts of data
provides various checks and balances for transparency
saves time and costs. It also helps with tracking,
and compliance.
retrieving financial information, and accessing data easily
for quick decisions. • Airtable – Offers customized database solutions tailored
to business needs, client requirements, projects, and
• Accuracy – The chances of errors are minimized with
product management.
correct computations and analyses of big data, along
with easy solutions to intricate formulas, ensuring There are many such software options available, depending
reliability. on specific tasks such as expense management, payroll,
inventory tracking, financial planning, and time management.
• Security – Important business data is secured through an
access control system. Conclusion
• Close Interaction – Departmental and project teams can The days of manually maintaining financial records and
easily share financial data in real time, making financial preparing final accounts as a challenging task are long gone.
reporting and invoice generation quick and efficient. Accountants once focused on basic calculations, but with
digitalization and AI, bookkeeping has evolved into a
• Easy Analysis – Big data is analyzed to identify past
strategic tool that provides valuable insights into an
patterns and trends, aiding in more accurate planning
organization's financial health and helps navigate the
and forecasting.
rapidly evolving business landscape.
• Cost Savings – Most labor-related costs are reduced.
Automating routine and repetitive tasks has freed up time
Time is money, and increased speed lowers expenses.
for more strategic activities, enhancing internal controls and
• Better Decision-Making – Accurate and well-informed financial decision-making. Management accountants, in
decisions contribute to an organization's fast growth and particular, are now playing a pivotal role in turning financial
industry leadership through a competitive edge. complexities into actionable intelligence, driving informed
Digital Accounting Tools policies and business strategies.
There are many useful digital accounting software/tools that About the Author: Syed Shamim Ahmed is a Fellow member of
ICMA. He retired as General Manager Finance from the Karachi Port
support accounting practices efficiently, economically, and
Trust (KPT) where he served for around 22 years in various positions.
accurately. They help in preparing financial reports for He was also a member of the Karachi Dock Labour Board for 7 years.
decision-making while ensuring compliance with statutory After earning his MBA from IBA Karachi, he began his career at
requirements and accounting standards. These tools Citibank before moving to Awami Autos (now Pak Suzuki).

48 ICMA’s Chartered Management Accountant, Jan-Feb 2025 BACK TO CONTENTS PAGE