Technology has completely transformed how we operate. Cloud based accounting, real time reporting and artificial intelligence now automate many labour-intensive tasks that previously took hours, freeing up our time to focus on activities that require a more personal touch.
Even in the face of COVID 19, accountants have been able to ensure business continuity thanks to the technology that supports remote work.
While we can confidently assume technology will continue to evolve, there are four major technological trends that are changing how the accounting industry operates now, and how it will operate in the future.
1. Cloud-based accounting
Today, nearly all accounting firms and major businesses are utilising cloud-based accounting, and for good reason.
Cloud applications are able to handle everything from invoicing and payroll to benefits and taxes. And as robust as these systems are, they also offer user-friendly dashboards and intuitive interfaces that make it easy for businesses to see what’s happening at any given point in time.
Automation is the biggest benefit of cloud-based accounting. Sophisticated algorithms easily handle tasks that previously required hours of manpower to complete, creating more capacity for staff to focus on higher value tasks.
2. Artificial intelligence
Speaking of automation, AI is changing the game. Many of the labour-intensive tasks that accounting firms have previously relied upon – such as payroll, audits, and tax preparation – can be fully streamlined.
AI won’t completely replace humans as human intelligence will always be a valuable asset, regardless of how smart computers become. Rather than make accountants obsolete, AI solutions will give accountants access to better information.
3. Real time reporting
Over the past few decades, the delay between when an accounting event occurs and when it’s recorded has significantly diminished. It used to be that businesses were days behind, meaning the reports they had in their hands were only accurate as of a few days ago. Then it become hours and then it became minutes.
However, today’s most robust accounting technologies offer real time reporting. That means every accounting transaction is inputted, recorded, and reported at the same time.
In terms of the relationship between accounting firms and their clients, real time reporting helps establish trust and reduce confusion. It enables both parties to see the same information at the same time.
4. Remote accounting
Remote accounting solutions gives accounting firms the type of connectivity that people could only have dreamt of in decades past. Firms can reconcile accounts, add receipts, send invoices, or create expensive claims all from a smartphone, tablet, or laptop. As an added benefit, this allows accounting firms to hire employees in different areas of the country/world and manage remote teams with greater efficiency than ever before.
While many firms have embraced technology in their businesses, adoption barriers do still exist. Firms may be discouraged by the recruitment, organisation and training of staff, or find it challenging to invest enough time and effort in the evolution of technology.
One full proof strategy that provides you access to the latest technology without the implementation headaches or additional expense is outsourced accounting.
Outsourced accountants don’t just provide qualified teams to do the heavy administration lifting for you, they also invest in state of the art technology to ensure their clients always have access to the most advanced technological advancements available.