The document discusses the digital revolution that is transforming the accounting profession through increased use of information technology. It notes that digital technologies like computerized systems have shortened the time needed for accountants to prepare financial reports. Common computer systems used now include bookkeeping, information capture, reporting, and audit packages, which can be desktop-based or cloud-based. The advantages of cloud-based systems over desktop include lower costs, greater accessibility, automatic syncing of files, and improved security. Digital transformation is changing how accounting is done through new processes and customer experiences enabled by digital technologies.

1. Digital Revolution in
Accounting
BY MIRIAM OBO-ANDERSON, ACCA. CEO AND CO-FOUNDER OF
MORACLE AFRICA

2. There is an accelerating and disruptive digital technology
transformation in progress. It is referred to as the “digital
revolution”. It can potentially adversely impact an
organization’s competitiveness . The accounting
profession needs to prepare itself for substantial change
and a threat to jobs in accounting. Especially after all the
lessons we have learnt from COVID19

3. The biggest impact IT has made on accounting is the
ability of companies to develop and use computerized
systems to track and record financial transactions. IT
networks and computer systems have shortened the time
needed by accountants to prepare and present financial
information to management

4. Very common Computer systems
 Book keeping packages
 Information Capture packages
 Reporting packages
 Audit Packages
 Could be desktop or cloud based.

5. Desktop Packages
 Desktop accounting software is installed and runs on your computer where the
data is also usually stored. The advantages of desktop software are: • no ongoing
fees to use the program, • data is stored on your own PC, • doesn't require
internet access

6. Cloud Based Packages
 Cloud accounting software is similar to traditional, on-premises, or self-
install accounting software, only the accounting software is hosted on remote
servers, “the cloud,” where it is processed and returned to the user.

7. Cloud accounting software – also known as
online accounting software or web-based accounting
software – is accounting software that is hosted on a
remote server. Users send data to “the cloud” where it is
processed and returned to the user.

8. Advantages of Cloud based over desktop.
 Cost
 Purchasing physical storage can be expensive. Without the need for hardware
cloud storage is exceptionally cheaper per GB than using external drives.
 Accessibility
Using the cloud for storage gives you access to your files from anywhere that has
an internet connection.
 Recovery
In the event of a hard drive failure or other hardware malfunction, you can access
your files on the cloud. It acts as a backup solution for your local storage on
physical drives.

9. Advantages of Cloud based over desktop
 Syncing and Updating
When you are working with cloud storage, every time you make changes to a file
it will be synced and updated across all of your devices that you access the cloud
from.
 Security
Cloud storage providers add additional layers of security to their services. Since
there are many people with files stored on the cloud, these providers go to
added lengths to make sure your files don't get accessed by someone who
shouldn't
 Cloud storage has given users the ability to share and access files
remotely without access to their local storage systems.

10. Digital Transformation

11. Digital transformation is the process of
using digital technologies to create new — or modify
existing — business processes, culture, and customer
experiences to meet changing business and market
requirements.
This reimagining of business in the digital age is digital
transformation.

12. How books were kept before Digital
Transformation
 Obtain invoices for all purchases and claim receipts from suppliers and other vendors as
well.
 Issue out/give out receipts to all customers for sales
 Record all payments ( purchases and expenses) and all sales and keep all documents in a
file for reference for five(5) years or more as evidence .

13. Sales Day Book
Date Invoice No. Customer Name Net Vat Gross
1/8/19 357 Y Co.Ltd 100 20 120
1/8/19 358 Z Co.ltd 50 10 60
1/8/19 359 D Co.ltd 200 40 240
TOTAL 420

14. Purchases Day Book
Date Invoice No Supplier Net VAT Gross
2/8/19 230016 Blakes ltd 200 40 240
2/8/19 000167 Owusu & Co 400 80 480
2/8/19 002259 Nat &Co. 100 20 120
TOTAL 840

15. CASH SALES & PURCHASES
DATE RECEIPT NUMBERS TOTAL SALES
8/8/2019 1-30 420
9/8/2019 31-42 800
11/8/2019 42-55 1000
29/8/2019 56-60 200
TOTAL 2,420.00

16. Payment Voucher

17. Documents to Keep
 Payments vouchers
 Bank Statements
 Cheques stubs
 Receipts
 Invoices

18. Digital Transformation for Our Clients
 Create an invoice
 Email the sales invoice with a message
 Copy of it is stored in the cloud
 Connect a POS for cash sales
 Record sales
 Create an estimate(quote/ proforma
invoice)
 Receive sale and match a bank deposit
 Keep a record of all sales invoices for
future references

19. Digital Transformation For Our Clients
 Create an LPO(Local Purchase Order)
 Purchase invoice is matched with the
Purchase Order
 Create a Goods Received Note/ Goods
Delivery Note
 Update your stock/inventory for goods
received as you purchase
 Pass a purchase invoice for payment and
pay it online
 Keep a copy of purchase invoice in the
cloud ( No need to print)
 Create bills for expenses on accrual basis
and pay

20. Advantages of Digital Transformation For Our
Clients
 On your phone (means you can use on the go)
 Can capture and extract invoice information directly into the accounting system
 Can do Payroll or import your payroll data
 Prepare and File your VAT returns
 Import Data ; customers, suppliers, products and services and bank
data.(statements)

21. Questions ?

22. Thank You
THANK YOU FOR YOUR TIME.