Data room providers help to organize accounting statements

Virtual information technology in its applied aspect is developing much faster than the practice of accounting. In this article, we will analyze the impact of cloud technologies on the accounting system.

Peculiarities of accounting and audit in the condition of the digital economy

The content of the digital economy is a qualitatively new state of the socio-economic system, which changes the essence and foundation of reproduction processes in society. The economy is shifting to a new technological order, which is supported by the corresponding digital platforms being developed. The quality of management processes, organization, production systems, sales, social security of the population, all spheres of society’s life is changing. 

Any changes in the field of information technology will sooner or later be reflected in the practice of accounting. Over the past 20 years, information technologies used in accounting have come a long way in their development from single-user programs without a window interface to complex corporate ERP systems, which has made it possible to move everywhere from traditional paper workflow to electronic. 

The financial statements of an organization are a unified system of data on the property and financial position of an organization and on the results of its economic activities, which is compiled based on accounting data following established forms.

The choice of the option for fulfilling the requirements for the localization of accounting databases depends on several factors: 

  • the current organization of accounting, 
  • the scale of accounting processes and the amount of data,
  • the requirements of the headquarters, 
  • the company’s plans for growth and development, etc.

Virtual Data Room in the accounting system

One of the innovations offered and actively developing in the information product market is the automation of accounting using cloud-based Virtual Data Rooms.

Virtual Data Room is a comprehensive system including document management, workflow, and secure client portal for accounting firms. The idea behind the cloud is to provide ubiquitous, on-demand network access to a shared pool of computing resources from any device regardless of user location with minimal cost.

The main advantage of this approach is that the program does not need to be purchased, installed on your computer, tracked for updates, and taken care of the safety of your data. There is no need to look for and maintain a qualified specialist for these purposes, set up a backup system, take measures to ensure the integrity and safety of databases – all this is already included in the standard terms of service. 

One of the more popular Data Room services of interest to businesses of accounting is online office provisioning. The user is offered a set of web services, which usually includes all the basic features of traditional office suites, for example, such as a word processor, spreadsheets, an application for creating presentations, to-do planners, and even analogs of a database management system.

Data Room providers have the following benefits for accounting system:

  • Complete confidentiality of information. Modern encryption algorithms ensure the integrity of information transmitted over communication channels. All reports are stored in encrypted form on the system server, which protects reports from loss. The server security system is always maintained at a high level.
  • Multiplayer mode. One enterprise can have an arbitrarily large number of connection points to the system. At the same time, several accountants can simultaneously work with the same database, filling out and submitting various reporting forms.
  • Integration with reporting software. The system is integrated with a large number of accounting programs, allows you to transfer data prepared in any accounting program to the inspection.