In today’s environment, it’s hard to not be aware of how rapidly technology changes. But it’s not just the latest smartphone that’s different. The last 10 years alone have seen the highest rate of development for software using the web—that includes accounting software. It’s important to understand as you begin your search that accounting technology is now governed by these three innovations: the Cloud, APIs, and automation. Below we discuss these three things you need to know when shopping for accounting software.
- The Cloud – All modern business IT is now being built and deployed “in the Cloud,” through the Software as a Service (SaaS) model. Basically, instead of using the software on a local computer or server, you access the software through the internet on a remote server. This allows for increased accessibility and scalability, as well as automatic software updates and backups. Cloud accounting has made it possible for companies to make the best decisions possible at all times. The cloud also allows for your accounting solution to work with other cloud-based solutions.
- API – Without Application Programming Interfaces—or “API’s”—integration and IT flexibility would be impossible. APIs literally enable different software to communicate with each other. Because of this, APIs are a critical component of cloud architecture. APIs provide “building blocks” for programs (also called applications or “apps”). They define functionalities while allowing programs to respond fluidly to requests, even independently of their out-of-the-box parameters. This means that the software can be flexible and heavily responsive to users without compromising the overarching IT structure. This becomes very important when you have software that needs to meet individual requirements and connect with a variety of different applications. A robust API helps solutions be both exceptionally flexible and connect more efficiently with other apps.
- Automation – Click a button or schedule a routine, and a task—or several tasks—are completed automatically. Automation is making accounting faster, more reliable, and less dependent on manual data entry than ever before. There are several types of automation available to make all your web-based solutions perform at a highly efficient rate and with reduced oversite. For accounting, this means less tedious bookkeeping and more data to help you grow.