If there is one thing you can count on, it’s changes to compliance regulations.
In fact a recent report by Accounting Web Intelligence cited the increasing compliance burden as the largest factor in the capacity challenge facing UK firms.
In this last tax year, there have been dozens of changes to Corporation Tax alone, from increases in the main rate, to lower-level updates to Diverted Profits Tax (DPT) or SME R&D relief.
Combined, these are a constant challenge to accounting firms who need to stay on top of the latest laws, ensuring accurate financial reporting, and managing non-compliance risks.
It demands a level of efficiency and precision that traditional methods can no longer guarantee.
Unless you’re taking advantage of accounting software that helps firms remain compliant.
Here’s how it can help your firm set new standards for accuracy, efficiency, and compliance.
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How Modern Accounting Software Can Help Your Firm Remain Complaint
Here’s how modern accounting software is making it easier to stay compliant by keeping your data continuously up to date.
1. Accuracy and Reduced Human Errors
Modern accounting software reduces the risk of financial inaccuracies that might trigger regulatory penalties by ensuring data accuracy alongside adherence to the latest accounting standards and practices.
This precision is crucial where even minor discrepancies can lead to legal and financial repercussions, loss of trust with clients, and potential churn.
“We’ve always prided ourselves on our commitment to excellence. Mistakes are a big no-no, so we wanted to ensure that these silly errors never happened again. Clients should trust their accountants or their consultants – they don’t pay you to get things wrong.” – Alastair Barlow, Founder of filnder.
Using live and connected data, can automate complex calculations and ensure that financial information is up to date.
This eliminates the common pitfalls of human error, like typos, and built-in validation mechanisms cross-verify data entries against compliance rules and regulations, flagging inconsistencies for review before they can escalate into problems.
It’s a proactive approach that safeguards your firm against compliance risks while giving you a competitive advantage and facilitating trust and reliability in your financial practices.
2. Automation and Efficiency
Automation and efficiency are the backbone of accurate compliance in accounting, transforming how your firm will approach financial management tasks.
Streamlining operations such as data entry, transaction reconciliation and report generation reduces the need for manual checks, cutting down on the time and resources for these activities.
Moreover, automation ensures that tasks are completed with a high degree of accuracy, minimising the risk of human error and the need for senior staff to make corrections.
It also creates one standardised way of working across your firm for a consistent approach to preparing client files.
For example, digital templates for working papers that are automatically pre-populated with live bookkeeping data and best practice workflows for a range of client types. Plus, your team can save hours with features like roll-forward and automatic iXBRL tagging.
As a result, it speeds up the financial processes and improves the quality and reliability of your compliance work.
“It has helped us create a standard process (backed by robust technology) to produce high-quality working papers quicker and more accurately than ever before. This has been invaluable in allowing us to maintain strong governance and provide a first-class client experience.” – Alastair Barlow, Founder of filnder.
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3. Real-Time Data and Insights
Access to real-time financial data enables firms to monitor clients’ compliance status continuously.
It ensures that financial data is accessible and analysable the moment it’s generated. You’ll always have the ability to:
- Pull an immediate, accurate picture of a client’s financial health or across your entire client portfolio.
- Identify potential compliance issues early.
- Capitalise on opportunities immediately.
- Adjust strategies on the fly.
Moreover, real-time data helps you spend less time on compliance-related work. Instead, it gives you the competitive edge you need to have meaningful conversations with clients and focus on advisory services.
“We needed a new solution for our accounting compliance function to free up time for our staff, enabling us to engage with clients more frequently and with better data.” – Jason Appel, BKL partner
4. Enhanced Data Security
Trust is hard-earned and easily lost.
With the increasing threat of cyberattacks, you need to protect your data and your clients with strong data security measures.
Advanced cloud-first accounting software incorporates state-of-the-art security measures to protect sensitive information from unauthorised access, manipulation, or theft.
It often includes continuous monitoring and anomaly detection tools, which actively scan for suspicious activities, alerting administrators to potential security breaches in real-time.
In addition, using a cloud-based service brings the additional benefit that the software is continuously kept up-to-date. Security fixes can be rolled out automatically in one go. There are fewer issues with automatic version control, and no risk that data stored on devices locally could be lost or stolen.
These comprehensive security features maintain the integrity of your financial data, thus fostering trust among your clients and complying with stringent regulatory standards.
Preparing for the Future of Accounting Compliance
Adopting software with the above features is a strategic move towards modern accounting compliance.
Firms using these tools are in a better position to manage the complexities of financial regulations, deliver superior client services and achieve sustainable growth.
It’s a milestone toward a more accurate, efficient and secure accounting industry.
Offering powerful solutions to meet the needs of modern accounting firms, Silverfin can redefine how your firm works while freeing up resources for additional revenue streams.
Request a demo today and take the first step towards embracing the future of accounting.
Frequently Asked Questions
1. How does modern accounting software help improve risk management for compliance work? By automating compliance processes and maintaining accurate records, it minimises the risk of errors and non-compliance, protecting the firm from potential fines and reputational damage.
2. Can accounting compliance solutions integrate with other business systems? Yes, most accounting compliance solutions offer seamless integration capabilities with the rest of your tech stack. A firm that offers open APIs and has a proven track record of integrating with other innovative accounting specialists will offer the best long term solution for accounting compliance.
3. Are modern accounting software solutions suitable for all sizes of firms? Absolutely. Whether you’re a small local firm or a large multinational corporation, these accounting software solutions are scalable to meet your specific financial management and compliance needs.
4. What are the risks of using desktop software for an accounting firm?
When it comes to keeping your software aligned to the latest regulations, desktop software is much harder to keep up-to–date for all staff. This is because it requires a physical update to be actioned by someone per machine or account. With cloud-first providers the regulatory changes are automatically added and immediately available to everyone when they next log-in. As such, update timings are significantly quicker and the risk of missing someone is removed.
