The future of accounting

Thanks to the rapidly changing technology that now most of the accountants have become totally dependent upon software and other technological solutions. All the technological innovations in the accounting industry have made accounting cheaper, quicker, accurate, productive and efficient. Once technological accounting solution was an option for accountants and business but now it has become a necessity. Many of the lengthy and boring accounting operations like data entry have now become automated because of technological changes.

Nowadays, in most of the firms, accountants are expected to do more than just bookkeeping, especially in the financial service industry. According to a study, it has been found that most of the businesses expect their senior accountant to do devote more time in non-traditional functions like strategic planning and information technology projects. It has also been found that most of the CFOs are now spending one-third of their time in dealing with non-traditional functions and with the advancement of time, the time spent on such functions is expected to increase.

Technology is going to play a major role in shaping the future of accounting and that’s why in this blog post, we will be looking at some of the modern-day technological marvels which will shape the future of accounting.

Cloud accounting

Cloud accounting is one of the most revolutionary technologies in the accounting industry as it completely changed the way professionals carried different accounting operations. The concept of cloud is not new but it took several years for this amazing technology to become new normal in most of the industry. When cloud computing was introduced to the accounting industry, most of the accountants and their clients hesitated in using this alien technology but after understanding its advantages and affordability, it was widely accepted by both professionals and businesses. According to a study, it has been found that by 2020, 80% of the enterprise workload will shift to cloud and that will also involve accounting operations.

Nowadays, people have some of the most advanced cloud accounting solutions like QuickBooks hosting and most of the professionals and businesses are now capitalizing on the wide range of benefits offered by this technological marvel like global accessibility, high uptime, multi-user access, real-time updates and much more. Cloud accounting is going to play a major role in shaping the future of accounting and soon, accounting without cloud will become unimaginable.

Artificial Intelligence

You might be thinking that using Artificial Intelligence and machine learning is a futuristic application but you should know that many big firms have already started using AI in their accounting operation and getting better results. Using AI in bookkeeping and other accounting practices has now become a reality as major accounting software vendors like Intuit, Xero and Sage are currently offering advanced accounting features like automated data entry and automated reconciliation. According to research, it has been found that by 2020, not only accounting but other related operations such as tax, payroll and banking will be fully automated with the help of Artificial Intelligence.

But you should know even with so much of automation, Artificial Intelligence will never be able to eliminate accountants as still there are many accounting operations which can’t be done by technology alone. So, if you are an accountant and worried about losing your job because of AI then you need to have some rest as such possibilities are still unrealistic.

You should know that modern-day technologies like Artificial Intelligence and machine learning are still in their infancy stage, especially when it comes to accounting and it will take several years for even the most advanced accounting software solutions to become totally dependent upon such automated technologies.

The future of accounting is surely going to be very different but it will include humans for sure. There are many professions in the world which can’t be fully automated and accounting is also a part of it. If you are an accountant and looking forward towards the future of accounting then you should start preparing yourself to work along with the technological marvels which are going to be introduced in the accounting industry in the near future. With the help of technology, the accounting will become quick, easy, cost-effective, hassle-free and accurate as well.

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