What is Accounting 2.0?

The term “2.0” is used across a number of different platforms today. Generally, calling something 2.0 is done to refer to it as next generation, a development, or an advancement, on what already exists or has come before. The term Web 2.0 is familiar to many people. When Google’s Eric Schmidt talked about Web 2.0 in 2007, he characterised it as applications that are “small, based on the cloud, and that can be accessed on any device.”

Clearly, the thinking behind Web 2.0 isn’t going to transpose directly into Accounting 2.0 – they are different industries, after all! There are many similarities, however. What is Accounting 2.0?

An Easy Definition

The easiest thing to say about Accounting 2.0 is that it is the modern way of doing things. It is an approach we have taken here at Friendly Accountants, and it informs everything we do.

Although we can arrange to meet with our customers in person, we prefer to do everything online as it keeps costs down and is better for everyone – Accounting 2.0 has a whole range of benefits! However, it is still too simplistic to say that Accounting 2.0 refers to online accounting; we have to look further at how this is done.

Accounting 2.0 Applications

All of the online accounting applications you can find in a Google search are great examples of Accounting 2.0.

These include applications that include no software download; you simply log onto a server and use everything through the cloud. The accounting software that does need to be downloaded is usually much smaller and easier to use. In the past, it felt like you still needed an accountant to be able to use the software on the market, but now it is easy to do.

You can also download apps to your mobile device and have your accounting data synchronized across your devices for instant access at all times.

Accounting 2.0 Businesses

It’s fair to call ourselves an Accounting 2.0 business. We communicate via email so documents can be shared instantly rather than relying on the post, and we can store all of your documents electronically so we don’t need loads of space or run the risk of things going missing in filing cabinets.

We’re also happy to explore the use of collaboration tools with our customers, services like Dropbox, for example, in order to even reduce the number of emails we need to send and receive.

Accounting 2.0 is the more efficient and cost effective way of accounting, and is better for everyone.