The Future of Finance: How is Accounting Going to be Different?
The accounting industry is going through a dynamic shift with the support of the latest technology. No doubt technology is shaping the future of accounting as advanced accounting software and tools are making repetitive and tedious jobs easier, saving their time for analytical tasks. In a few years to come, we are likely to see a totally different picture of the accountant’s chore roles as tech changes the future of accounting.
Following are some industry experts’ views on how accounting is going to be different in the future;
- Luke Lee, CEO and Founder of Palaleather
Dependence on Analytical Accounting Data will Increase
Understanding is required when dealing with massive data information insights. Data analytics is all about cleaning, manipulating, examining, and modeling data to draw conclusions. Based on the information available, these findings are then used to make the best business decisions feasible. With massive amounts of data streaming into a business at any one time, it’s critical to leverage software solutions that can collect and translate data into meaningful dashboards and reports in a timely manner, providing more and clearer insights across the organization.
2. Jeffrey Nelson, CEO And Founder, NoLimitsTiming
Blockchain Can Transform Accounting
Blockchain has previously made headlines, and it is unlikely to do so again anytime soon. As per my experience, I firmly think that blockchain technology enables a computer-based recordkeeping mechanism for transaction verification. Blockchain can be used in accounting to establish ledgers that are innately validated without the chance of corruption, despite the fact that it is most usually associated with Bitcoin. Blockchain technology has already been adopted by a number of large accounting companies. Real-time access to ledgers, transactional recordkeeping, and smart contracts are all possible with blockchain.
3. Lulu Albanna, Co-Founder of WRC Media
Automation, AI, and ML Can Speed Up the Accounting Process
I believe accounting automation is one of the most noteworthy trends that has led to the financial revolution that most accounting teams are facing. Accounting automation software uses robotic process automation (RPA) and machine learning to automate time-consuming accounting tasks.
Banking, payroll, tax preparation, account reconciliation, audits, and other areas can all benefit from automation. Rather than having your staff generate reports or examine data by hand, the software solution can speed up the process, increase efficiency, and eliminate errors. This allows your human resources to concentrate on higher-value duties.
4. Paul Somerville, Technical Manager at Electric Scooter Guide
Accounting Services Outsourcing is Becoming Popular
Outsourcing is the newest technique to progress in the accounting industry and it will flourish in the future. It allows businesses to concentrate on their core business rather than on minor details. As a result, when experts or organizations outsource monotonous work, they have more time to focus on values like profitability and resources. Since then, outsourcing services has become the accounting industry’s fastest-growing segment. Accounting outsourcing services are becoming increasingly popular among businesses as they benefit from more competent and dependable professional services. It’s also a good way for CPAs to give outstanding services to their clients while also boosting their own credibility.
5. Matthew Dailly, Managing Director at Tiger Financial
Cloud Computing — The Future of Accounting
I believe that working in the cloud is a big technological development. The constant updating of information is a significant benefit of a cloud-based system, allowing accountants and clients to examine data and make decisions based on the most up-to-date information. When information on the system is updated, cloud-based technology can also ensure “continuous monitoring, rather than sporadic analysis,” according to the Journal of Accountancy.
6. Dr. Frederik Lipfert, Founder & CEO of VPNCheck.org
Specialized Accounting Software Will Change the Game
I believe that accountants are abandoning the classic pen, ledger, and desk calculator one by one. There are now more effective processing tools and specialist accounting software that permit faster data entry and computation. Even manually inputting information into software is becoming less common as scanning technology makes it easy to simply image a page and let the software automatically fill in the required fields. An accounting job necessitates exact calculations and having all of your data calculated by a computer has greatly increased precision and decreased the margin of error. Consider what occurs when even a small number of users simultaneously view, amend, and comment on their statements. Then, they can assemble and debate utilizing whichever method is most convenient, such as a web-hosted video conference.
7. Tanner Arnold, President & CEO of Revelation Machinery
Tech-driven Auditing Will Have an Impact
In my opinion, technology, such as computer-assisted auditing technologies (CAATS), has streamlined many of the auditors’ more mundane jobs and will continue to do so over the next decade. As a result, auditors may begin to observe the installation of RPAs replacing CAATs as a method for this purpose. As a result of CAATS, a portion of an auditor’s responsibilities now include monitoring such systems, in addition to performing more hands-on auditing work in person. As technology advances and more progress is made with RPAs, the number of auditing tasks that are entirely automated will increase proportionally.
When executing activities, auditors may find themselves collaborating with such software, when it is implemented, as opposed to monitoring them. Auditors may find their amount of connection with customers diminishing, but not eliminating, as technology enables greater distance communication, so allowing them to deal with clients from a larger geographical base. Nevertheless, many audit activities necessitate human contact, such as acquiring reasonable assurance over client assertions when auditing system data may contradict such assertions.
8. Brian Case, Director of E-commerce & Retail at Selkirk
Artificial Intelligence to Resolve Accounting Problems
Despite the fact that artificial intelligence techniques such as machine learning are not new and development is rapid, widespread use in business and accounting is still in its early phases. To create a positive future vision, we must first have a thorough understanding of how artificial intelligence may solve accounting and business problems, as well as the practical obstacles and skills accountants will need to collaborate with intelligent systems. The Institute of Chartered Accountants in England and Wales (ICAEW) has extensive experience in technology-related issues, spanning many aspects of business, finance, and accounting, and will focus on improving understanding of the practical use of artificial intelligence in business and accounting activities today and in the near future.
The Takeaway
The accounting industry is rapidly changing with the use of advanced technologies such as cloud, artificial intelligence, machine learning, blockchain, etc. In this fast-changing world, accounting professionals must keep up with the latest accounting technology and its best utilization in order to cope with the emerging industry trends.
