Key Technology Trends in Accounting and Finance

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Key Technology Trends in Accounting and Finance

CFO Tech Outlook | Tuesday, December 21, 2021

Data is crucial for making financial decisions in business. Data today includes unstructured data that can be analyzed using natural language processing, in addition to the numbers and spreadsheets that accountants have been familiar with for years.

Fremont, CA: The data explosion that has brought in the Fourth Industrial Revolution, an era in which cyber-physical systems will transform business, has enabled the development of several technology trends. Every business can benefit from these important trends and should consider how to use them effectively, but accountants should consider how these six technologies can be utilized strategically to achieve the company's business strategy.

Big Data

Data is crucial for making financial decisions in business. Data today includes unstructured data that can be analyzed using natural language processing, in addition to the numbers and spreadsheets that accountants have been familiar with for years. This enables real-time monitoring of financial matters. Data is the fuel that drives other technological trends that are reshaping finance and accounting in the Fourth Industrial Revolution. The auditing process has also been digitalized. In the financial sector, data generates valuable insights, drives results, and improves the client experience. Because everything has a digital footprint, the unprecedented digitalization of our world is opening up new opportunities to glean new insights from previously unavailable data. These insights aid in the improvement of internal operations and the growth of revenue.

Computing Power Increased

All of the data generated by our digitalized world would be useless or at least less powerful if it weren't for advances in computing power, just as it is for other companies. These modifications enable accounting and finance departments and firms to store and use data effectively. First, there are cloud services from companies like Google, Amazon, and Microsoft, which offer scalable systems and software to be accessed wherever and whenever needed. Edge computing has also grown in popularity. This is where computing takes place, rather than in the cloud, but right where the data is gathered. The wide-adoption of 5G (fifth generation) cellular network technology is expected to serve as the foundation for a smarter world. When quantum computing is entirely adopted, it will be transformative in ways that cannot yet be predicted because it will exponentially increase our computing power. Quantum computers will be able to offer services and solve problems that traditional computers could not. This capability will be extremely valuable in the financial world.

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