Digital Push for New-Age Accounting by the ICAI
The Institute of Chartered Accountants of India (ICAI) has recognized the need to embrace digitalization in the field of accounting. As the years passed, technology grew, and it has helped every aspect worldwide grow and taste the fruit of success. ICAI has taken a proactive approach to embrace the digital revolution as a paradigm shift. Automated software can handle complex calculations, generate real-time reports, and assist in decision-making, saving valuable time and resources. This blog post explores DCMM - ICAI's digital push towards new-age accounting and how it reshapes the field.
What is DCMM?
DCMM consists of a questionnaire that enables SMPs to assess the following:
- Digital competency level
- Identify solid or weak areas
- Establish strategies for reaching a higher level
The DCMM covers all data center aspects, including power, cooling, computing, storage, and networks. This model outlines current best practices and a five-year roadmap for the industry.
DCMM v2
There have been additions to DCMM v2 compared to its last release. Professional accounting firms have been guided on how to scale up and ride the wave of technology by the Digital Accounting and Assurance Board of The Institute of Chartered Accountants of India.
How DCMM v2 Can Benefit CA Firms
Automating the accounting department can save time, increase output value, and lower the risk of data errors and inconsistent results. Using DCMM v2, accounting software features can be tracked and quantified as follows:
Internal processes:
Time-consuming manual operations have been eliminated from CAs. Technology has made these processes accessible. CAs can access financial data wherever they are.
Audit Processes:
It focuses on actual audits and related work being carried out by the firm. It uses automated tools to facilitate the audit process or scenarios, especially where a complete audit concentrates on the IT controls in the client environment.
1. Competency Dimension Score/Point
2. Awarding Basis
3. Actual Points
4. Score Achieved
Tax and Compliance services:
According to the ICAI, the best accounting software for CA must advise clients to automate appropriately, ensure internal access to the latest automation tools is available, provide digital updates on the most recent amendments, and ensure that clients know. Lack of tax knowledge and inadequate document maintenance frequently prolong tax litigation.
Accounting function:
Through the operations of the accounting department, the company can maintain a fiscal history that it can make accessible for audits. As a result, CAs can make well-informed decisions to identify trends and patterns better, enhance forecasts, and improve outcomes.
Conclusion
The digital push by the ICAI also aims to facilitate seamless collaboration between accountants and their clients. Cloud-based accounting software and platforms enable real-time access to financial data, allowing accountants and clients to work together more efficiently. DCMM Technology has changed the Chartered Accountant's communication with their customer more efficiently and smoothly. Clients can access financial data and documents remotely through web portals and mobile apps. At the same time, automated chatbots answer clients' questions and concerns 24 hours a day.
