How Accounting Professionals Can Leverage Evolving Technologies

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How Accounting Professionals Can Leverage Evolving Technologies

CFO Tech Outlook | Monday, August 16, 2021

Technology is increasingly changing the accounting sector.

FREMONT, CA: Intelligent technology is influencing the future of accounting through influencing job opportunities. Humans will become the critical link between data and clients as improved systems handle repetitive tasks. Technology will continue to impact the accountant's job and demand in the future. Accounting is evolving with technology. Below are a few upcoming technologies reshaping accounting operations.

Cloud Computing

A critical technological trend is cloud computing. Cloud computing enables rapid access to resources such as data and processing power. A significant advantage of a cloud-based system is continuously updating data, allowing accountants and clients to examine data and make informed decisions. The Journal of Accountancy notes that cloud-based technology enables "continuous monitoring, rather than intermittent analysis," anytime updated system data.

According to Forbes, cloud computing is accelerating its growth as new sophisticated technologies such as the internet of things (IoT), artificial intelligence (AI), and machine learning are integrated. As these technologies gain widespread use, the future of accounting appears to be largely cloud-based.

Blockchain

Another trend that will affect the future need for accountants is blockchain technology, a computer-based record-keeping system that utilises bitcoin in a peer-to-peer network. While blockchain acquired prominence as a result of bitcoin—a digital currency in which transactions are recorded, and new units of money are issued independently of a bank—the technology has advanced significantly since then. The appeal of blockchain technology for accounting stems from "the promise of a new sort of accounting ledger—one that can be continuously updated and verified without the risk of being edited or corrupted," as Accounting Today explains.

Since blockchain enables users to view ledgers in real-time and construct smart contracts, and record transactions, it's unsurprising that accountants are taking note.

Automated Accounting Tasks

Labour-intensive and time-consuming aspects of accounting—such as audits, tax preparation, banking, and payroll—are rapidly automating. As AI-based self-learning systems become more integrated into accounting operations, automated systems will take on repetitive and time-consuming chores, leaving analytical and management responsibilities to people.

Another example, according to the CPA Journal, is the use of robotic process automation (RPA) to cut audit and contract processing times to weeks rather than months. According to Forbes, more prominent organisations that integrate RPA and AI have “increased productivity and provided higher-level services” compared to smaller, non-AI competitors.

See Also: Top Internet of Things Solution Companies

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