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Development of science and technology, general availability of fast mobile internet, cloud software, availability of electronic services via computer or mobile phone, the general trend of digitalization of business documentation such as e-invoices and other documents are all parts of the so-called digital transformation which also affects changes in the provision of accounting and bookkeeping services.

It was digitalization that made work from home possible for many accountants during the pandemic. The advantage of digitalization is the reduced need for files and paper documentation, because all data can be electronically stored. One of the main reasons for digitalization is saving and reducing costs. When a company opts in for a digital transformation of accounting documentation, all invoices usually go in parallel with other documents entering the company.

Process of digitalization of contract documents and their connection to the invoicing module may have positive effects on the whole business and automation process, particularly in the field of accounting and finance.

During the last few years we have often heard about a new, efficient, and faster way of doing business in cloud. No matter the economic activity of the company, it is a term we encounter more and more frequently and it is a relatively new approach that many accounting services in Croatia are not familiar with considering all the advantages of such methods of accounting. However, world trends showed that cloud accounting is a more modern and advanced option compared to the traditional systems where the solutions are not installed to a local server within the company, but on a more secure domain.

Cloud accounting is completely different from traditional accounting. For cloud accounting purposes, the initial costs are much lower: it is not necessary to purchase data storage and processing servers, data copy storage devices or licenses for antivirus programs. In addition, individual computers on which data is created and from which data is sent to the cloud may be of lower performance than when it comes to traditional accounting, which means that they are much cheaper.

The security component is not negligible either in cloud accounting. Cloud accounting software and data are stored on secure servers that are supervised by companies which provide cloud business services, therefore safe from network attacks. Such companies are specialized in providing cloud services and investing substantial amounts of funds into security protocols and protection of such services. When it comes to traditional accounting, the potential dangers to the hardware and the risk of loss of database should certainly be pointed out, for example: fire, theft, burglaries, floods, earthquakes, and other possible disasters to the tangible assets. To summarize, the implementation of cloud accounting can help reduce costs of the company and increase employee productivity. The data can be accessed at any time from any electronic device or web browser and accessed via mobile phone or tablet, without limitations when it comes to the power of the processor device. When it comes to providing accounting services, the biggest changes are yet to be expected in the upcoming years.

For further information, please contact Petra Dzankic, Accountant and Payroll Assistant in Zagreb, at zagreb@eurofast.eu

Eurofast is a regional business advisory organization employing local advisors in over 23 cities in South East Europe & the Middle East (SEEME). The Organisation is uniquely positioned as a one-stop-shop for investors and companies looking for professional services in Tax & Transfer Pricing – Payroll & Employment – Accounting & Audit –Advisory & Corporate. 
Petra Dzankic
Accountant & Payroll Assistant
Eurofast Zagreb
zagreb@eurofast.eu