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