Importance of Real time Accounting

It is ‘Traditional Accounting’ versus ‘Real-Time Accounting’. Today we will try to highlight the differences and see how in today’s age of the Internet and smartphones real-time accounting is making a difference in everyone’s life.

Let us first start with the major differences between the two.

1.     Reports

Traditional accounting: It was normally bi-monthly, quarterly, or annually. It is mostly one-format one-size that fits all.

Real-time accounting: Here the report / data is available daily, weekly, and monthly, and easier to keep track of everything. The best part is it can be customized according to the business’s need.

2.     Access Rights

Traditional accounting is a one-way process, generally maintained by the accountant. But in real-time accounting, it is accessible by the business owner, and can be accessed anytime online. It helps the business owner to keep tabs of everything on a real-time basis.

3.      Dependency

In traditional accounting, the business owner has always depended on the accountant’s efficiency, and pays the fees as pre-decided by them.

But in real-time accounting, the business owner has total control of almost everything. Here the business owner sets parameters based on business needs.

4.      Go paperless

In tradition accounting, it keeps on adding piles of paper and paper. But in real-time accounting everything is available online, which you can easily access anytime. So you do not need a bunch of papers on your desk every day.

I am sure now there will not be a single doubt in your mind about the superiority of real-time accounting. It actually saves time and money for business owners. With many questioning whether any value is added by an accountant in an SME environment, we, at Corient decided to follow what many in the international accounting industry believe to be the future of accounting for SME’s, and began offering our customers packages designed to ensure a Unique Value Proposition.

 Author: Sachin Lohade is a Chartered Accountant and works with Accounting Firms to improve practice and reduce costs. He can be reached out at sachin@corientbs.com or you can visit www.corientbs.co.uk