Technology has had an incredible effect on every industry imaginable – accounting being no different.
Automation tools that use advanced algorithms and machine learning are already streamlining accounting processes, freeing accountants up to interpret complex data sets and provide strategic insights to their clients.
Adopting cutting-edge tech is essential to the future of accounting. Here are some exciting trends to keep an eye out for in 2024:
1. Automation
Since ancient times, people have recognized the need to record their business transactions. Today’s accountants serve more than simply as bookkeepers; they act as curators of data that enable businesses to make informed decisions to meet their business goals.
Automation allows accounting processes to be completed faster and more accurately, freeing accountants up from tedious manual tasks to focus more on higher value activities.
Before, approving and submitting expense reimbursements or searching for purchase orders and invoices could take hours of tedious searching through filing cabinets and paper piles. Now, automated systems can process these documents on their own for easier retrieval when necessary.
Utilising emerging technologies can also assist with employee retention. Younger employees tend to seek companies willing to adapt with them.
2. Artificial Intelligence
Accounting has evolved significantly over time. Companies now emphasize technology proficiency, data analytics, critical thinking skills and cross-functional collaboration from CFOs down to entry-level staff.
Artificial Intelligence can assist accounting and finance firms by eliminating repetitive tasks. Many accounting firms rely on AI software for various accounting-related duties such as auditing, payroll processing, uploading files for accounts payable/receivable and inventory control among many other tasks.
Although artificial intelligence (AI) has generated fearful headlines in the media, it should be remembered that AI only performs tasks programmed for it. Accountants familiar with using and supporting AI can help their companies get maximum return on investment for their investments; additionally, AI provides insights through continuous learning that may identify tax savings opportunities or minimize financial risk.
3. Big Data
Accounting firms have taken advantage of big data’s proliferation to broaden their services and assist businesses in improving financial forecasting and risk management, and to identify potential issues with transactions or account balances more easily.
Big data’s other major benefit lies in enabling accounting professionals to make more accurate predictions about future business trends, which can save companies money while increasing profits.
Accounting firms need to harness this trend by hiring more personnel with expertise in big data analysis. Furthermore, they will need to partner with technology companies and young professionals familiar with this emerging technology. This study details six potential convergence points between big data and various accounting techniques and theories.
4. Cloud
Cloud accounting involves hosting accounting software and data on the internet for easy access and reducing expensive hardware requirements. This allows accountants to save time by working simultaneously on multiple projects without worrying about missing files or recovering information that’s gone missing.
Accessing real-time information via the cloud also enables for faster collaboration with clients, meaning accountants can spend more time meeting with clients to discuss finances and provide financial advice.
Cloud accounting not only simplifies tasks and collaboration, but it’s also easier for small- to mid-sized firms to comply with financial regulations – particularly those without sufficient resources to hire full-time accountants.
5. Blockchain Technology
Blockchain technology is an emerging innovation that provides secure, transparent and automated record-keeping. This revolutionary breakthrough could revolutionize accounting by automating tedious manual tasks like reconciliation and financial statement auditing while improving processes like invoicing and tax payments.
Blockchain will make it easier for stakeholders to access and verify accounting records, increasing transparency and accountability. Furthermore, its immutable and distributed nature helps maintain integrity and accuracy for accurate accounting records.
Smart contracts will enable transactions to execute automatically based on predefined terms and conditions, eliminating traditional invoicing procedures. This technology will revolutionize how accountants serve their clients; consequently it is crucial that they gain a firm grasp on this new development.
