How Technology is Shaping the Future of Accounting

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The accounting services industry is changing rapidly due to the evolution of technology.

Today’s accountant is no longer overwhelmed by work-focused projects. Instead, as a result of changes in dynamic accounting technology, accounting software programs are becoming more efficient and the role of an accountant is shifting to a business advisor. Using cloud-based applications will significantly reduce information technology and file storage costs. Security, backup, and data recovery have also benefited greatly from cloud technology.

Why Do you Need Technology in Accounting?

For example, “automation, minibots, machine learning, and evolving intelligence have become part of the financial team at lightning speed” in the company Accenture, as noted in Forbes.

Having records in digital format, and in one comprehensive system, means you will be able to easily manage and retrieve files if needed. Distributing accounting information to various branches within your company will also be a breeze.  The internet is something every business should learn to make the most of. Often, we think that the Internet is just the place where our company website and social media accounts live. However, there is a major change currently taking place in the corporate world: the cloud.

Mobile Accountancy

There are many benefits to mobile devices for small businesses that have not yet used them. There are now mobile applications for accounts related services. Here are just a few activities you can take care of on your mobile device:

  • Create and submit invoices.
  • Download receipts.
  • Create cost claims.
  • Include signatures.

When a problem arises that requires an immediate response, you will be able to access the files and data you need, wherever you are. With a smartphone or tablet and mobile device management from your IT support provider, you can go with your office wherever you go.

That means there is no more waiting until you return to the office. That is important because your clients are just as busy as you. They will enjoy your work, even more, when you can provide critical answers when they need them. Also, that information drives the increase in customer loyalty.

Accounting Softwares

Accountants are giving up on traditional calculators and slow and partially manual software used for calculation and maintenance of data. Now there are more efficient processing tools and special calculation software that allows for faster installation and calculation of data. Even the act of entering data manually into the software is reduced as the scanning technology makes it easier to scan the page and allow the software to complete the appropriate fields itself.

With advances in accounting technology, there is a long-term need for consultation on site. Because accountants and clients alike have access to real-time data remotely, both parties can simultaneously view, edit, and comment on their statements. After that, they can meet and discuss in any of the most convenient ways – including a web-based video conference.

Top 3 technologies Shaping Accounting

Cloud Technology in Accounting

An important technical practice works in the cloud. The cloud allows quick access to resources, such as data and computer power. An important advantage of a cloud-based system is the continuous review of information, which allows accountants and customers to analyze data and make decisions based on edge information.

Some of the benefits of cloud-based accountancy are:

  • Analyzing real-time data has been possible because everyone in your firm has access to the most recent data on the cloud.
  • Cloud computing makes re-formatting documents from the web easier to collect and use.
  • You can have unlimited storage space as your business grows – irrespective of the number and quantity of your accounting files.
  • Your files are secure and automatically backed up in the cloud.

Cloud computing is facing rapid growth as new smart technologies – such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning – are integrated into the cloud, according to Forbes. As smart technology evolves and more companies move their data to cloud-based systems, accountants need to be able to use the cloud to provide clients with timely financial analysis to stay competitive.

Automation in Accounting

Employee features and more accounting time – such as auditing, tax adjustment, banking, and employee compensation – are expected to be fully automated by 2020, according to Forbes.

For example, major software vendors, such as Intuit, Sage, OneUp, and Xero, offer automated data entry and retrieval options using AI and machine learning technology in the company’s archives, according to Forbes.

As automation becomes a major accounting factor, you must prepare for the future of financial services by acquiring the necessary skills to perform administrative, managerial, and analytical technologies that can be completed.

Blockchain in Accounting

Another approach that affects the future of accounting services is blockchain technology, a computer-based recording system that uses cryptocurrency within a user’s network. While blockchain may have gained popularity thanks to bitcoin – a digital currency where a transaction record is maintained and new currency units are produced independently of the bank – the technology has advanced significantly. Since blockchain enables users to access ledgers in real-time, and to make smart contracts and record transactions, it is not surprising that the system catches notification of accountants.

Conclusion

The emergence of accounting technology has been huge with strong growth potential in the future. The development has taken the industry to many of the new levels I have discussed in this article. In comparing the changes that have taken place with the use of accounting technology over the years, business production has created job stability and many different opportunities in this thriving accounting industry.

About Us

Wiley Financial Services is a full-service accounting company with over 20 years of experience with a wide range of industries ranging from restaurants, event design firms, IT firms, manufacturing, consulting firms, nursery, bio-medical, etc.

We have assisted several small businesses with their financial services, reporting, and tax requirements and we have complete information on full-cycle maintenance, reporting, and tax records., FRx, Crystal, and Microsoft Office Suite. We possess knowledge of accounting software programs such as SAP, Sage, QuickBooks, Syspro, Timberline, Great Plains, FRx, Crystal, Oracle, Peachtree, and Microsoft Office Suite. Wiley Financial supports small businesses where they may not be prepared for a full accounting team.