Accounting technology has simplified and shortened the time of recording financial transactions for the accountants. This allows companies and accountants to make management decisions quickly. Accountants today are updated with the latest information pertaining to the market and the business environment.
The advancement in accounting technologies has provided companies with new opportunities as well as challenges. The common challenges include customer expectations, innovative business ideas, escalating costs, etc. Hence, it is important to stay updated with the latest technology to make your professional life easier and make you a better accountant.
Following are some capabilities of Accounting Technology:
Better External Reporting
Artificial intelligence (AI) technologies are intelligence machines that are capable of completing tedious, mundane tasks at a fraction of time taken by humans and with greater accuracy. AI technology can handle various accounting functions such as tax preparation, payroll, and audits. Leading accounting software providers like Xero, Sage have incorporated AI technology into their software to handle basic accounting functions such as bank reconciliation, risk assessment, audit processes like expense submission and invoice payments. It is expected AI technology will transform accountants in the future. AI streamlines the process and enhances productivity.
Around 90% of small and medium enterprises use cloud accounting software. This software eliminates mistakes and provides accurate financial information which can make the decision-making process faster. It helps in maximizing the business capital. Analyzing the trends have advent the new styles of accounting thus, making the process effortless. It also automates tasks such as invoicing, tracking invoices and getting paid by the customers reducing the human error.
Blockchain is the distribution and decentralization of database technology. It can protect encrypted data and maintain an expanding list of transactions among all parties involved. It has the potential to transform entire industries, especially in the financial sector. Currently, accountancy is based on a double-entry system but with blockchain technology, there’s no longer a need for this kind of redundancy, since the data are verified without another party. It’s a complete, automated audit of each individual transaction. Blockchain technology allows both sides of a transaction to be recorded at the same time in a shared ledger, even as each accountant, auditor, and the company maintains a privately managed database.
Automated Accounting Technology:
The future is zero data entry required in the accounting industry. Automated technology has always presented the double-edged sword of convenience and the replacement of humans with technology. Virtual controllers of automated accounting technologies will be in high demand, so even if you have to redefine your role as an accountant, being a high-value virtual controller can help sustain your career path. The good news for the accountant is that automated technology will make accountants’ lives more efficient, cutting down the time spent on manual entry and reducing human error. It is expected that tax preparation, payroll, and audits will be fully automated by 2020. Cloud-based accounting systems such as QuickBooks are considered automated accounting programs, but they represent only the tip of the iceberg. Accounting professionals will be able to utilize the latest technologies that highlight anomalies without manual data input. This technology is cost-effective and can reduce the margin of error.
Optical Character Recognition:
OCR applications scan printed and handwritten documents and convert them into machine-readable text. When they can scan a handwritten note and create an electronic document, professionals can quickly share information with colleagues and clients. This technology has made accountants’ lives easier. The integration of OCR with accounting software allows accountants to perform a simple search to find the information they need. They can also copy or edit information as required. The best part is that OCR allows accountants to cut hours of work from such tasks as itemizing receipts, organizing invoices, tracking expenses, and making it paperless.
Technology is advancing at an alarming rate. Accounting companies are expected to invest in new solutions. AI will help accountancy teams with the heavy lifting of analysis and reporting, and intelligent algorithms will help identify issues and flag errors quickly and easily. With the right skills and training, technology has become a boon for the accountants.