Technological innovations have made expeditious changes in the accounting industry. For example, “automation, minibots, machine learning, and adaptive intelligence are becoming part of the finance team at lightning speed” at consulting firm Accenture, as noted in Forbes.
Intelligent technology may seem new, but many companies are already using basic automated accounting processes. Accounting tasks and processes that machines can do or streamline, according to Forbes, include supplier onboarding, accounts payable, audits, procurement, purchasing, expense management, close processing, and customer queries.
Intelligent technology is shaping the future of accounting by impacting the types of jobs that will become available. As advanced systems handle repetitive work, humans will deal with more of the analysis, becoming the crucial link between data and clients. Technology will continue to impact the role of the accountant and the demand for accountants in the future.
Automation has made things easier for the modern-day accounting professional. Automation is extremely beneficial for small and medium businesses (SMBs), as it helps reduce transactional and routine tasks such as data entry, bookkeeping, and compliance work. Automation also enables SMBs to store all their financial information in a centralized location. Sending invoices and payments received can be tracked easily through an automated accounting system. It also simplifies the process of recording and verifying information on a large scale for SMBs. SMBs generally partner with third-party service providers who can help them reinvent their finance operations by integrating automation into key finance functions to improve their business performance.
Finance executives seek to make a positive impact on their organizations, yet they often lack the time, resources, and capabilities to achieve optimal alignment between their investments and overall business performance. To meet those challenges, outsourcing is now an option being considered by many CFOs. Outsourcing can also help businesses in cutting costs, lowering the risk of fraud, and providing streamlined and efficient processes. It also keeps a neutral eye on the business’s cash flow while still allowing complete control over business accounts.
Before AI came to the scene, accountants had to wait for the hard copy data to be delivered and then manually enter that information into their system. But now, with the help of AI, document scanning tools and software can give accountants live access to their financial information which eliminates the tedious task of manual entry and provides accountants with more time to spend analyzing the information and providing critical advice to management based on that information. The IoT adds another layer of benefit by providing access to real-time data and existing operations. It can immediately respond to issues and evaluate risks comprehensively. SMBs can integrate these technologies more effortlessly and swiftly because their structure is smaller and more flexible, ensuring them a quicker response to the insights and opportunities provided.
Drive towards Industry Change
As per a worldwide survey based on the answers of 3000 accountants in 2019, a stark percentage (around 90%) believes that the accounting industry will enter a cultural shift by the next decade.
Moreover, the effect of such a shift has started to come to light in the form of:
- Toward emerging technologies
- Business services
- Hiring practices
- Work from home practices
Another highlight revealed from the above survey is that more than 82% of accountants will start recruiting new employees from non-traditional backgrounds.
Even with a number as high as 62%, the current respondents believe that the accounting training programs of today won’t be enough to catch up to the accounting trends of 2030.
If the above facts are intriguing, we have more for you. So, let us look at a few fascinating accounting trends that are forecasted to shape better ventures.
The increased need for accountants and other financial records managers is typically linked to the country’s economic well-being. In the future, accountants will be in high demand because of globalization and stricter rules.
Despite the automation of many accounting operations, technology will never completely replace the role of accounting experts. “Technology simply can – & would never be able to handle on its own” the customer concerns addressed by accountants, according to a recent industry journal. There will be greater opportunities for accountants to become company advisers and strategic partners in the future, rather than merely financial gurus.