There are a lot legal frameworks, which tend to change. In European Union private entities need to follow the local GAAP (Generally Accepted Accounting Principles), but in most European countries it is aligned to IFRS (International Financial Reporting Standard). Beside general frameworks there are specifications, for example in Italy, goodwill should be amortized, revaluation is not allowed, there are specific capitalization rules and only operating leases are recognized.
There are also a lot of rules next to accounting: anti money laundering requirements and different country-specific rules.
Photo by Tingey Injury Law Firm on Unsplash
Every accountant sees that there is digitalization ongoing everywhere in the world, but let`s be honest – not in the field of accounting … Yet! To stay up to date with the last updates, sign up for the newsletter.
The clients are asking nowadays more advice than traditional accounting can apply. To give advice, one should be really experienced: that is a whole other role than book-keeping, you should have deeper knowledge. Frequently clients ask from accounting companies how to optimize taxes, but in order to answer that you not just have to know different tax rules in different countries, you have to know really well how those systems are operating and have your own experience. So nowadays an accountant is expected to know much more in addition to financial reporting. These are the biggest challenges a modern accountant have.
Digitalization helps to get rid of these manually repeatedly done tasks to have time to pass over advisory. Estonia is quite digitalized, but in many countries clients still pass printed invoices and documents to the accountant. After that an accountant has to copy them manually to the software he or she is using. That means copying the data that actually exists electronically – that is really annoying and time-consuming and error-prone – it is really easy to mistype numbers, if you do that, the accounting does not fit into the real situation and you have to spend a lot of time to find and fix the error. Working that way you also have repeatedly ask the client for all kind of information in order to do your job – “why did you use this money for”, “why did you get that money in”, in the end of the month you have to remind the missing documents etc. This is a really annoying yo-yo effect between the accountant and the client.
It has to be streamlined as all the data is actually existing electronically somewhere. moduulo is tackling with these kind of problems and helps to save book-keeping time, optimize processes and raise profitability with a modern data clearing platform for European accounting firms and management tools for their clients. Modern digital technologies allow automated data processing and extraction of useful information to deliver added value via consulting and knowledge sharing. Thereby you can simplify those processes and gain higher revenues.