With new technological innovations, businesses continue to reshape how they conduct their accounting activities. They continue to utilize technology because it improves efficiency, saves time and money. Advanced hardware and software applications are now used to perform repetitive accounting tasks with ease.
This has left a lot of companies with no other choice than to embrace the technological change. Many of them are making adjustments to accommodate the change in the workforce, industry regulations, customer and marketing demands.
Here are some of the trends in accounting technology that are transforming the industry in 2020.
Various accounting software are used to automate repetitive tasks. They have been used to eliminate manual data entry and consequently leads to improved productivity. The accounting industry will see more tasks become automated as technology continues to advance. Fintech companies have greatly utilized Artificial Intelligence in automating accounting tasks. This is evident in the growing number of accounting software for small, medium, and large businesses. The increased development and adoption of AI in robotics have aided automation.
2. Cloud-Based Accounting
The use of cloud-based accounting software has made the processing and storage of data from remote servers possible. SMEs no longer have to worry about the cost of purchasing and maintaining on-site hardware and software. Leveraging cloud-base accounting tools has provided businesses the ease to accessing data anytime and anywhere. This has helped them to save valuable time. All these benefits are reasons businesses will continue to adopt cloud-based accounting systems.
3. Data Analytics
Data Analytics is the process of analyzing raw data in order to make reasonable conclusions about the given information. The advancement in data collection and processing helps to have access to insights and predictive analysis. With a click of a button, you can now better understand the overall status of your business and consequently help to improve your decision making.
4. Remote Working
Remote working has increasingly become popular, thanks to advancement in technology. With Cloud-based accounting solutions and more advanced computerized systems, accountants can now handle accounting tasks remotely. This has made companies prefer hiring accountants who can work remotely rather than a full time employee. It is expected that this trend will continue to grow in the foreseeable future.
Blockchain technology has revolutionized the financial industry. There are many digital currencies that are now accepted as a means of payment. Blockchain will not only reduce the cost of reconciling but also provide accuracy of your account and asset history. It’ll increase accountability and tracking of supply chains.
Technology is greatly transforming how businesses are run, companies can no longer afford to stick to the traditional accounting practices. The relationship between technology and accounting has been intertwined. So if you want your business to stay ahead of the curve, it is only wise for you to embrace technology. Learn about new technologies and also encourage your employees to learn new skills. This way, your business will remain competitive and ready to meet the demands of today’s market.