The only thing constant is change, and this applies to the accounting profession as well. Organizations can increase the productivity of accounting by using advanced technology. Accountants are now free from the burden of passing manual entries and drawing huge data to generate reports. They are now expected to develop additional skill sets that include making quick decisions, constructive criticism, analytical thinking, etc. The demand for new accounting technology increases the rate of performing various accounting operations and reduces costs. The accounting profession is making use of the internet to a great extent to manage internal management and external clients.
Every technology gets updated regularly to incorporate more functions. This increases its flexibility and performance. Artificial Intelligence has enabled many organizations to save money by using fewer resources, as it is easy and cost-effective to automate most of their mundane tasks.
The accountants and finance professionals have acknowledged the importance of advanced technology in accounting and they are in the best position to leverage the benefits of technological advancements. They are now adopting and learning these new advancements to improve their role and performance. The growth and development of AI have changed the manner of doing business and financial professionals need to get hands-on experience of this technology to understand it.
Technology has far-reaching effects on the growth and development of the accounting profession. Some developing technologies that are likely to shape the future of the accounting industry are:
1. Mobile Accounting:
Mobile accounting makes use of applications that enable the user to manage accounts and business-related information using a smartphone, tablet, laptop, etc. Integration of many applications can be done simultaneously, making it easy to access data on mobile. Mobile accounting being cost-effective enables users to complete regular activities like bookkeeping, report generation, budgeting, etc. on the move. It also improves efficiency, as it does not require the user to be present to complete a task. Mobile accounting’s benefit of being accessible anytime and anywhere makes monitoring and coordinating easy. It saves the use of paper, provides flexibility, and helps to streamline processes. With such convenience of use, mobile accounting technology is here to stay.
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2. Robotics accounting:
Robotics accounting is an emerging technology that uses artificial intelligence to develop the Robotic Process Automation (RPA) software. It eliminates the need for humans for handling voluminous and repeated tasks. Thus, this reduces the chances of errors and ensures that all tasks are completed quickly and efficiently. RPA is again a cost-effective technology that helps to increase the overall performance of the organization.
RPA can perform tasks like
- Accounts Receivables
- Accounts Payable
- Financial Budgeting
- Planning, and
3. Cloud Computing:
Cloud computing is an accounting technology managed by cloud service providers (CSP). It uses the internet to provide quick access to applications, accounting tools, storage, etc. Using cloud-based technology ensures that organizations do not have to invest in huge IT infrastructure, as everything is stored on the cloud securely. Data once stored on the cloud is never lost. Accounting software that uses cloud technology is automatically updated from the backend. This feature saves time, and the company does not have to keep its employees, unlike traditional accounting systems that usually expect the users to avoid the use of the system till the upgrade is complete.
Cloud accounting is reliable, as data is always backed-up and easily accessible from any access point. It is user-friendly and hence increases the speed at which the work is done thereby increasing productivity. It is also cost-effective and can be used on a large scale throughout the organization as its availability only depends on the internet.
4. Blockchain technology:
Blockchain is the latest technology advancement in accounting, which provides high-end security to all files and data in an electronic mode. The focus point of blockchain technology is its ability to protect the data so securely that it cannot be destroyed or changed. Financial institutions like banks, investment firms that deal with public money can protect their clients from scams using blockchain technology. The data in a blockchain is stored forever and all the users can access it, eliminating the need for centralized databases. Using Bitcoin and cryptocurrencies helps in transferring the rights of assets efficiently and securely.
Blockchain is also being explored in auditing, as the auditor can access data on a real-time basis as the client is processing it. This makes monitoring easy and helps the auditor to pay close attention to many complex transactions. It also helps to avoid wasting time on selective or random testing techniques for other transactions of the least importance. Thus, auditors can use the data available on the servers and do not need to re-test the client’s accounting system or software, as blockchain is highly reliable and free from discrepancies. Blockchain technology ensures transparency of accounts, which increases the stakeholders’ confidence and helps in the smooth business functioning.
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Want to know more about these evolving technologies?
Technology advancements are rapidly shaping the future of the accounting industry and if you want to know more about them or intend to implement them in your organization, you can contact us.
Diligen is a financial service provider serving small and large organizations across various sectors. The experts at Diligen have working knowledge of all the latest technologies available in the market. Diligen also understands the client’s need to stay updated with the latest advancements and strives hard to provide clients with the best solutions. The team at Diligen helps clients in implementing the latest technology based on their business size and needs. They also provide continuous technology-based support to help clients in their day-to-day activities and in making strategic decisions for growth and development.