Technology is evolving and advancing rapidly in the accounting industry, driving a shift in how accountants perform their work. It also impacts how companies approach accounting, with many finding in-house solutions via emerging accounting software. Here we look at accounting technology advancements, threats, and benefits to help you understand how technology is transforming the accounting industry.
Accounting Tech Automation Improves Firm Service
Current trends in accounting automation are a game-changer for accounting firms, as they eliminate time-consuming, non-billable manual tasks. As a result, they can streamline processes to expand their capabilities and service more clients. In addition, automation creates efficiencies to improve accuracy and the types of services offered. Firms can eliminate manual processes and paper-based records, modernizing service offerings like tax planning on top of tax filing.
From a business improvement standpoint, accounting firms save time with optimized workflows and the elimination of manual tasks to improve accuracy. The focus shifts to enhanced client service, with a proactive, more strategic approach that keeps their clients and their own operations profitable.
Improved Tax Compliance
Tax technology leverages artificial intelligence and machine learning, supported by instant tax compliance updates. The tech ensures compliance when processing client filings with integrated tax research functionality for ongoing tax updates. Using AI and machine learning, accounting technology can help accountants go beyond basic filing and introduce value-added services like tax planning.
Improved Advisory Services With AI
Through automation, accounting technology allows accountants to focus on higher-value services. Accountants can track financial data and create detailed reports and analyses complete with AI-powered interpretations. As a result, they can review and structure interpretations into data clients can understand and utilize. With simplified data preparation, financials are less intimidating, positioning accountants as dependable advisors bringing value to clients that help businesses achieve their goals.
A more proactive, strategic focus creates a shift to a more profitable accounting firm model that continues to bring value to clients all year. Accountants can enhance financial planning and guidance, nurturing client long-term growth and profitability.
AI In The Accounting Industry
AI has been a trending news story for a while now, thanks to its ability to increase efficiency and, on a more negative note, put human jobs at risk. However, while AI might help facilitate everyday tasks such as creating invoices and analyzing financial data, it still requires human input to create structure and identify opportunities using financial reports.
Some advantages of AI’s impact on technology for the financial industry include:
- Providing more specialized accounting services: AI and automation reduce time-consuming tasks, allowing accounting firms to become more specialized in what they offer. This brings more value to businesses with financial consulting and proactive advice that keeps clients better informed of their financial health. As a result, accounting firms become partners for smaller businesses that benefit from ongoing financial insights.
- User-friendly reporting: Financial analysis capabilities using machine learning improve how data is received and composed, making it easier for accountants and their clients to glean meaningful insights that help drive businesses forward.
- Focused accountant functions: Automation using AI allows accountants to focus on core functions such as cash flow management instead of resolving issues with error-prone invoice workflows.
- Proactive accounting: AI allows businesses to take a more proactive approach to growth, as accounting firms play a more active role in driving business decisions. Proactive accounting leveraging AI and machine learning provides prompts that facilitate wise investment and financial strategies using benchmarks, tracking, and real-time data.
Will New AI-Centered Technologies Replace The Human Accountant?
Although AI can replace basic accounting tasks, it doesn’t necessarily mean accounting jobs will be completely replaced — at least not in the near future. AI is already performing everyday manual accounting tasks. This means a more likely outcome we can anticipate happening sooner rather than later is reducing the staff required to man accounting departments. So, while entire teams might not be replaced, replacing specific tasks will create leaner, smarter accounting teams that use accounting software to handle manual, repetitive tasks.
Complete Digital Transformation In The Future
The next generation of accounting technology promises to deliver complete digital transformation. Leveraging advancements in AI and machine learning with cognitive computing skills, accounting tech will impact all accounting and financial management levels. Accountants will become focused on strategy and collaborative financial management practices, creating a far more valuable contribution to workforces and businesses.
This, in turn, will create a more attractive industry often avoided by past generations that viewed accounting as nothing more than entering numbers and tedious manual tasks. Instead, the focus will be on tax strategy versus basic tax filing, predictive analytics versus manual data input, and strategic partnerships with business owners instead of once-a-year interactions focused on taxes. Accounting will become a more desirable career, attracting a more diverse selection of talent.
Through digital transformation, the future of the accounting industry shifts the focus of accounting functions to tax strategy, data analysis, and financial advisory/consulting that contributes to business growth.
How Does New Technology Benefit Businesses?
Automation and technology are transforming capabilities for accounting firms and streamlining the day-to-day accounting activities of small to medium-sized businesses. For accounting firms, it saves time, allowing them to service more clients and increase revenue. However, it also helps companies eliminate manual processes, reducing errors and improving staff engagement.
How Technology Is Transforming The Accounting Industry
Some of the benefits of tech for accounting automation include:
- Cloud-based accounting technology makes collaboration easier, ideal for hybrid workplaces with both work-from-home and onsite teams
- The elimination of manual, repetitive, tedious tasks improves efficiencies
- This elimination of manual repetitive tasks also allows accounting teams to focus on higher-value, strategic, and more meaningful tasks
- Financial data collection provides valuable insights to facilitate wiser business decisions
- An end-to-end accounting technology solution reduces errors and improves tax compliance
- Improved record-keeping creates efficient tax workflow processes to reduce the risk of audits while also improving the audit process with accurate audit trails
- Accounting audit trails across all accounting functions from start to finish improve transparency and accountability
Companies that embrace accounting technology are far better positioned to flourish with sustainable strategies that continue to benefit them in the long term. If you want to leverage accounting technology to grow your business, call the experts at Intrepidium today at 778-800-7976 or click here to schedule a consultation.
