Some business owners will avoid changes, especially in technology, in order to stick to the old ways of doing things. These ways might well be good and have probably worked for most of the businesses life. However, avoiding changes could be dangerous for your business as today’s business environment is more competitive than ever before, and because of it, it is crucial to utilize the available technology to increase the productivity of the employees.
Old Technology
In the old days, before technology was more advanced, you had to employ several employees to carry out accounting tasks. These tasks also took many hours for these employees to carry out. This increased business expenses were substantial and often could not be affordable for the smaller businesses.
New Technology
You could probably never replace the employees to do the accounting function. The technology is advanced enough that it takes less time with increased accuracy. The accuracy is still subject to the data entered into the system though. As long as there is a human interacting with a computer, there will be human error that creeps in. We are human after all and we make mistakes.
Fear
There is often a fear of new technology or new ideas. This does not only applies to accounting systems. It faces us every day. New ideas are taking shape so fast that we battle to keep up really. At first, it is difficult to accept, it becomes part of lifeĀ and then becomes indispensable. This is the case in accounting. 50 years ago it was counting machines and paper. Today, it can be completely paperless. many people are somewhere in between and hopefully more towards the paperless side.
Avoiding technology is a common trait not only in business but in all facets of life. There are a few more common mistakes that businesses make in terms of their accounting. Read more about them here.