How Is Technology Shaping the Future of Accounting?

How Is Technology Shaping the Future of Accounting?

In the future, technology will no doubt be a critical component of every business. Accounting will be no different. 

In this blog, we’re uncovering technology used in accounting. These technologies stand to shape the future of the industry. From cloud computing to automation, blockchain technology, and beyond, the future accountant will have to modify their role within the organizations they serve. 

Companies need more access to real-time reporting while receiving nuanced, in-depth data analysis. In the future, accountants will work alongside technology to provide these services. Future accountants will also need to specialize their services to stand out in the crowd. 

At Fully Accountable, we believe our clients deserve state-of-the-art technology at their disposal while maintaining the human touch. Continue reading to learn more about how you can implement a future-proof technology into your business. 

What is Accounting Technology?

Accounting technology refers to a wide range of new products and software accountants are implementing into their toolsets to ease clients’ worries and increase the services they provide. Artificial intelligence, automation, data analytics, and other software will continue to improve work processes and increase the accountants’ accuracy, efficiency, and productivity. 

In the past decade alone, companies have realized a vast difference in accounting technologies and the role of their accountants within their organizations. Increased automation leads to increased communication methods and more access to real-time reporting. 

Emerging Accounting Technologies

Accounting has taken a leap in recent years, and whether you’re a seasoned accounting professional who wants to stay updated on the latest trends or you’re a small-to-medium-sized business owner looking for what new accounting technologies can provide, the following advancements are bound to shape the accounting field of the future. 

Cloud Computing

Cloud computing is not exactly new. However, the possibilities of cloud computing will continue to shape accounting and how businesses manage their IT infrastructure for years to come. With instant access to resources, more flexible storage capabilities, and real-time information, clients can analyze data faster and make more accurate decisions. This constant data-monitoring lets accountants prepare better. Their tax strategy planning, capital procurement, and cash flow analysis create flexibility in an environment calling for increased compliance measures. 

Automation

Automation in accounting virtually eliminates the threat of manual errors on audits, tax preparation, and payroll…if your accountant understands how to use the software correctly. As accountants apply these automated features, they are able to focus on more analytical and managerial approaches to accounting. 

Another example of this automation at work is through robotic process information (RPA). RPA reduces processing time and audits from months to weeks and increases efficiency, allowing accounting firms to provide a higher level of services. 

Blockchain Technology 

Blockchain technology is another development affecting how accountants perform their jobs. You might have heard of blockchain technology from its applications for cryptocurrency. But one of its main attractions for companies is its ability to provide an accurate, continuously updating and continuously verified accounting ledger. 

Because users can access the blockchain in real time, they can create smart contracts and record transactions, accounting firms will continue to adopt this technology in efforts to implement it for their clients.

Required Skills for Future Accountants

Accountants of the future can’t afford to be the number-crunchers they were in the past. They must be aware of how these futuristic technologies can effectively integrate into their infrastructure. For example, accountants in the future will need to thoroughly understand how blockchain technology works to safely and effectively implement it into their clients’ infrastructure. 

They must be aware of how to perform information transfers for ledgers, contracts, and records. As automation continues to weave its way into every aspect of business, accountants have to understand how to perform the administrative, managerial, and analytical functions the software and technology can’t perform. In other words, they need more abstract rather than concrete skills. Accountants will be judged on how accurately they perform complex analyses and the advisory role they fulfill. 

Lastly, once accountants analyze the data they compile, they must have effective communication skills so they can clearly relate their analyses to board members and C-suite executives within an organization. Automation will free up time that accountants used to spend on mundane tasks, but accounting professionals must fill their time with high-level analytical skills. 

Demand for Accountants In the Future

Accounting professionals often base their predictions on the economic health of the country. As an economy improves, there is typically an increase in demand for accountants. As companies expand further with the effects of globalization driving this change, accountants will also have to modify their processes.

The increasing presence of various accounting technologies should not worry accountants. As with any other industry, accountants must adapt to changing demands. As automation increases, and manual task input decreases, the accounting profession itself will change. Accountants who are accustomed to performing manual tasks must modify the way they approach accounting. 

If they do not, there is a substantial chance that they will be phased out by technology. However, technology will not be at fault for this shifting dynamic. Instead, the impetus falls on the individual’s shoulders to learn how their industry is changing and adapt accordingly. 

Technology should not be viewed as a doomful omen for accountants but as a boon so they can focus on higher-value actions. If accountants treat it as such, they will be able to increase their efficacy and demand significantly. 

Specialization 

This change speaks to the underlying issue of specialization for accountants. It is no longer acceptable to call oneself an accountant simply because the general population lacks familiarity with compliance and basic bookkeeping. Accountants of the future must provide specialized services for their clients that technology can not handle. Rather than serving as a general accountant, accounting professionals should understand their niche and focus on specific areas of taxes and financial coaching. 

As companies dealing with eCommerce accounting struggles navigate an increasingly complex tax nexus, more specialized accountants will be of great value. The investigative accountant of the future – the professional who analyzes current organizations’ flaws and provides actionable recommendations – will be successful. The accountant who possesses exceptional communication skills will remain in high demand despite increased automation. 

Bottom Line- How Technology Is Shaping the Future of Accounting

Whether you’re an accountant worried about his or her place in a changing business environment or you’re a business owner looking to streamline your organization for the future, the numerous advancements in technology will prove indispensable. 

Automation, cloud computing, and blockchain technology represent ways technology will modify the accounting profession of the future. Accountants who modify their skills and their approach to the profession itself will be better equipped to survive in the business environment of the future. 

Those who develop specialized skills will be able to provide increased productivity, efficiency, and ultimately improve their clients’ bottom lines. 

At Fully Accountable, we believe our clients deserve access to a team of fractionalized professionals who understand how to simplify business processes and provide actionable insight to increase your cash flow and bottom line. 
If you’re wondering what you can gain from the future of accounting, we’re here to help. Contact us today to learn more about how Fully Accountable can streamline your accounting department.