As an accountant, you must have seen more technology transformations in your career than any other professional. Technology has been a true disruptor of this sector. However, technology and innovations have also helped us create dynamic growth environments.
We have been able to constantly improve the accounting functions and enhance its accuracy with the help of technology.
Some of these technology trends are still new in the market. These trends can help you transform your accounting infrastructure for better decision-making and financial outcomes.
Read how businesses of all types and sizes can extract full value from their technological implementations.
5 Trends to Follow
Accounting is an essential function of every business. Automating some of the accounting workflows and using technology can improve your accounting firm's accuracy and speed of execution.
Below we have explained some of the accounting trends. Read on to know how you can use these trends to serve your users better.
1. Cloud Hosting
Although accounting tools are here with us for multiple years now, cloud hosting is gaining popularity only recently. We have started moving towards this new technology for the past decade. However, the leap of this tech-implementation is a brilliant move.
Multiple small and medium enterprises don’t have the resources to host their applications on an in-house server. As a result, they move to cloud hosting for remote functionality and other benefits. This eliminates the need for an in-house server, empowers your team to use desktop solutions remotely, and decreases your execution and implementation cost.
Here are some of the fantastic features of cloud hosting:
You can host any accounting application on the cloud, such as QuickBooks or Sage 50. Cloud hosting helps you access data related to the application remotely from any device and any location.
The security offered by the cloud is better than the security controls you can place in-house. This includes automated intrusion detection, antimalware, antivirus, and other tools.
You also have the freedom to place access control on your files to define which user can view what file or data.
You can use multi-factor authentication to restrict unauthorized access to your cloud account and its stored data.
Your team can access data in real-time without worrying about delays and server access. This is because the uptime offered to you is approximately 99.999%.
2. Data Analysis
When you are involved in critical financial decisions of the business, analyzing the right data is necessary. New data analysis techniques and software help in making significant decisions of the business relatively quickly.
Let’s face it; you can’t make any decision without appropriate financial data. If you are going with the guesswork, then your decisions can go wrong far too often. To avoid that, you can utilize financial and critical information extracted through a tool to analyze your situation and decide.
Here’s what you need for financial decision-making and data analysis:
The best method to grow your business is to optimize your sales channels and utilizing a smart pricing structure. For this, you require advanced revenue analytics for better data utilization.
Other than advanced revenue analytics, you require visualization tools for diagrams and graphs. For a lot of businesses, these may be too-overboard. However, data visualization only helps accountants understand various verticals and observe information more clearly. The reason behind this is simple: we can consume visual information more easily than written data.
Another major trend that is currently emerging is the blockchain technology. This technology can truly change the financial landscape.
Let’s see how this technology works:
In the current scenario, if you want to send money to a client or vendor, then you would do so through a bank. However, without a bank, how can you achieve this transaction?
It is through a blockchain.
Blockchain is a distributed and decentralized network that helps you conduct transactions without a central authority.
This technology can help accountants in securing information related to customers. The data would be saved in an immutable manner, and you would have complete data ownership. The security of this structure is its real essence, which the accounting sector can utilize.
4. Artificial Intelligence
Like the cloud, Artificial Intelligence (AI) is also a ground-breaking technology that everyone is currently adopting. This technology teaches machines to act and react like humans. When accountants use it through accounting software, they are able to make smart decisions, draw better conclusions, and perform predictive analysis.
With the help of artificial intelligence, businesses can conduct business operations in the right manner. The cognitive ability of the tools helps in smart calculations, auditing, reconciliations, and invoice categorizations, which reduces the manual, labor-intensive work of the accountant.
5. Intelligence of Things
When you combine AI and the Internet of things (IoT), we get intelligent gadgets. This brings us smart and connected machines and devices.
These devices can communicate solely without human supervision, which can assist accounting professionals. Here’s what you can do with it:
Track your transactions, ledgers, and records anytime you want. The data is instantly fetched.
Identify and evaluate patterns in data to solve problems and find out irregularities in your accounting activities.
Continuous monitoring and auditing of accounting tasks for an improved outcome and fewer glitches or inaccuracies.
Better inventory tracking and management.
We are currently experiencing a massive technological transformation. Everything is moving towards remote working and better functioning. In such a situation like this, it is best to adopt technologies and inventions that can improve your return on investment and revenue.
The above accounting trends will surely streamline your workflows, and enhance performance and operational efficiency.