Intelligent technology aka Information technology may seem new, but many companies have been already using basic automated accounting processes. According to Forbes, Accounting tasks and processes like supplier onboarding, accounts payable, audits, procurement, purchasing, expense management, close processing, and customer queries can easily be performed or streamlined with the help of machines and software.
The types of jobs that will become available in the future will be highly impacted by Intelligent technology shaping the future of accounting. As advanced systems like workflow management software for Accounting Firms and CPAs can handle repetitive work, accounting professionals will have to deal with more of the analysis, becoming the crucial link between data and clients. Technology like automated accounting systems, AI, and Robotic process automation will continue to impact the role of the accountant and the demand for automated accounting solutions in the future.
1. Cloud Computing in Accounting
Accounting in the Cloud has changed the way many accounting firms operate. The cloud provides several benefits such as instant access to resources, data, and computing capabilities. continual updating of information, which enables accountants and clients to analyze data and make decisions based on real-time cutting-edge information. Additionally, cloud-based technology also enables constant monitoring, rather than periodical analysis i.e whenever information on the system is updated.
With these technologies becoming more accessible and advanced, the future of accounting is looking decidedly cloud-based.
2. Automation of Accounting Process
Manual and time-consuming processes of accounting — such as audits, tax preparation, banking, and payroll are quickly becoming fully automated. With applications of Artificial Intelligence and machine learning systems integrated into accounting processes, automated accounting systems will take on repetitive and time-consuming jobs, leaving the analytical and managerial tasks to professionals.
Another very significant example is the use of robotic process automation (RPA) in accounting processes like audits to reduce processing times down to weeks instead of months.
3. Data Analytics
In the accounting industry, there is a growing focus on data analytics. With advanced and automated technology integrating with accounting processes, the accounting industry is slowly and gradually shifting its focus to data analytics. Chartered Accountants and CPAs are undertaking additional roles of financial advisors, with unique skill sets that revolve around analyzing data. Analyzing numbers helps clients come up with valuable insights such as identifying process improvements to increase efficiency and manage risks better.
Although analytics as part of accounting services is not something new, it has now proved to be more powerful in presenting a financial performance for better actionable insights. Larger accounting firms utilize data analytics in tax, consulting, risk management, and auditing. Meanwhile, CA and CPAs in some organizations are utilizing specific data analytics solutions to support industry-specific needs.
What skills will the Future Accounting Professionals require?
Keeping pace with the technology advances, the accountant of the future will undoubtedly need to be technologically savvy to evolve with the changing industry. In order to stay competitive, more and more companies are moving their information to cloud-based systems. Therefore accountants need to become proficient in leveraging the cloud to offer clients up-to-date financial analysis and to stay competitive. Accounting professionals who wish to use automated accounting will need to be familiar with relevant software, as well as have the know-how of setting up information transfer for ledgers, contracts, and records.
With automation becoming a major aspect of accountancy, it’s crucial to develop the necessary skills to perform the accounting tasks that technology can’t do. Familiarity with data mining and other data analytics techniques will be of key importance as many accountants may have to take on an advisory role for their clients.
Thanks to automation, which has freed up time previously spent on more mundane tasks, accounting professionals can now focus on these higher-level analytical and technological skills.
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