BUSINESS ACCOUNTING TRENDS: TOP 5 TECHNOLOGIES
The subtle take over of our lives by technology is, at times, astounding. There is no single field where technological advancements have not altered the basic functioning and brought about some completely novel changes. A simple example is how dishwashers now do the extremely annoying chore of washing dishes for us without making it look like a big deal. But that is that; technology has transformed the way we function and live.
Much like every other field, accounting and business disciplines have also gradually advanced, thanks to technological developments. The old ways of recording, analyzing, and producing reports are now more modernized and simpler to process. The advent of artificial intelligence and process automation has entirely transformed the way modern accounting now works.
It is best to stay updated with the changing trends. This way, you can adopt the newer industry practices and not lag behind your competitors. Therefore, if you are an entrepreneur or have your accountancy practice, you should be well-aware of the following top five business accounting technologies.
1. DATA ANALYTICS SOLUTIONS:
Over the years, businesses have learned the significance of utilizing data to their benefit. As a result, to better assist business managers and accountants in performing data analytics, several technological solutions came into existence.
Data analytics help businesses form conclusions based on analyzing sets of information. These can include researches, industry insights, records, etc. Such information is beneficial for companies to forecast and plan the future. Since planning is an integral part of business, data analytics is now also one of the most critically used tools in business setups. Some examples of data analytics solutions for accountants include eMoney, Asset-Map, etc.
In the past, accountants were merely record-keepers. But gradually, now accountants play a broader role. Considering this, aspiring accountants now have to gain a diverse set of skills to play a responsible part in an organization. Since organizations expect much from them, it is best for these graduates to opt for an online accounting masters program. Such a program can equip professional accountants with excellent data analytics skills and expertise, highly valuable in the modern accounting scenario.
2. BLOCKCHAIN TECHNOLOGY:
Businesses have a hoard of information to gather and store. And often, safeguarding this information is an entirely separate feat. Companies commonly store their sensitive business information in databases on IT systems. These systems then get guarded by numerous security measures to prevent hackers from entering the system. However, with the advent of blockchain technology, many businesses have saved themselves from hackers’ threats breaking into their systems and stealing their data.
Blockchain is also a type of database. However, the way it is structured makes it nearly impossible to hack. Businesses that store sensitive information such as financial records, business insights, etc., can now secure their data through blockchain technology. You can keep whatever information you wish without any fears of security breaches.
Blockchain is a perfect storage method for accounting ledgers. Transactions can happen simultaneously in a shared ledger by both parties. It helps eradicate the need to reconcile balances. It is nearly impossible to alter blockchain data, eliminating any fear of data mishandling or alterations.
3. ARTIFICIAL INTELLIGENCE:
Artificial intelligence can help businesses automate some of the more monotonous and repetitive accounting tasks. There are various responsibilities in an accounting function that are quite time-consuming and tiresome such as order processing, invoicing, document management, etc. And it is best if such processes are automated.
AI helps businesses increase efficiency levels by allowing human resources to focus on more productive tasks. Also, repetitive tasks are tedious. Workers are prone to making errors after getting tired of doing the same job continuously. When it comes to accounting, AI implementation can reduce the number of bookkeeping errors and record maintenance. Moreover, the usage of AI can streamline processes and speed up the time taken to perform tasks.
4. ACCOUNTING SOFTWARE SOLUTIONS:
Using accounting software to maintain records and process data is not a novel technology. However, over the years, accounting software has massively evolved. The focus now is on minimizing manual tasks and making each process as automated as possible.
Moreover, companies now look forward to implementing software that helps businesses create advanced level reports, statements, and analysis. Some of the popular accounting software include FreshBooks, Intuit Quickbooks, Sage Business Cloud Computing, etc.
5. CLOUD-BASED ACCOUNTING:
Commonly an accounting software runs and stores data on the company’s IT system. However, cloud-based software does not work like that. Unlike storing information on a database present on your IT system, cloud-based accounting involves storing data on a remote server. You can save your accounting information on a ‘cloud’ and access it from anywhere you wish.
Most companies are now shifting to cloud-based software since it helps in remote access. With most of the world in lockdown during the pandemic, remote working was the norm. And in such scenarios, cloud-based workings are a perfect solution!
Much like every other field, technology has also massively transformed the accounting discipline. Numerous technological advancements have eased the accounting function and made it more straightforward. As a result of implementing accounting technologies, a business can achieve better efficiencies and more productive use of human resources. We have mentioned a few accounting trends we expect to get popular in the years to come. If you want to stay updated on the industry trends, adopting the accounting technologies mentioned earlier can help you achieve this objective!