In the seventies the micro computer set
in motion a revolution in the office. While large companies
had been using mainframe computers in accounting departments
for years, the small computer attached to local area
networks made these efficiencies available to everyone. The
result: fewer people in the accounting department, more
accurate information, faster response times.
The advent of the internet is about to
open a new revolution in the accounting department. The
future of accounting:
The end of local accounting
In the future your books with be kept
on a computer in a remote location. Accounting software
and your data will be housed on a computer in Seattle,
San Jose or some other remote location. Information will
be more secure and more available.
The end of the paper
The paper invoice is about to
disappear. Orders will be placed online and invoices
will be delivered online. Emailed invoices are currently
becoming more common, but in the future there will be an
important difference. The invoice will be directly
loaded into your accounting software. Currently your
vendor prepares an invoice using his computer, prints it
and mails it to you. Then you manually enter the same
information into your computer. Soon the invoice will
automatically download into your accounting system. The
result: more accurate information and lower labor costs.
Most key strokes will be made at the time of making the
The end of the paper check.
The end of the paper check is near. In 2005 a new
federal law went into effect which allows banks to stop
delivering cancelled checks with bank statements.
Payroll services for many years have provided for
payments to employees by direct bank deposit. The
transfer is called an ACH (Automated Clearing House)
transfer. High end accounting software is now available
with the capability of initiating ACH transactions for
payment of accounts payable liabilities. This all means
less paper, less printing, no check signing, no envelope
stuffing, less postage and time and money saved.
When will all of this come about? It
depends. Some organizations are using these techniques now.
Others soon will. As time passes most everyone will be using
these new advances.