How Technology is Transforming Accounting – Insights by Aron Govil
Technology is rapidly transforming the accounting function, especially the optimization of productivity. With software programs and applications automating the accounting function to a great extent, the accountant no longer has the burden of completing task-oriented projects and is more concerned with offering strategic business advice. Even though technology has always played a vital role in the accounting function, advancements in technology have boosted the accountant’s ability to crunch numbers and interpret data. Some of the top technologies transforming accounting and creating new roles for accountants include:
Artificial Intelligence and Robotics
AI and robotics are increasingly being used for automating repetitive and complex tasks in accounting. As a result, operations are more efficient and accurate. These emerging technologies support the change in roles of accountants to financial advisors from mere bookkeepers. Artificial intelligence has not progressed enough to replicate the human brain, but it has demonstrated limited intelligence, including learning from experience, prioritizing tasks, resolving complex issues, and applying innovative and imaginative processes for efficient resolution of issues and more informed decision-making.
Cloud computing allows large amounts of data to reside on off-site servers. It makes available internet-based computing capacity on several devices on-demand, says Aron Govil. Being connected online, accountants do not have to restrict their work to offices. Now they can operate from any location using the cloud to fetch data and deliver reports. The connectivity enables boundary-less operations and opens up a flexible method for accountants to work with their clients. Instead of getting bogged down with detailed processes, accountants can now spend more time and energy on business strategy.
Contemporary tax software helps to improve accuracy significantly while reducing the error margin. It is of utmost importance to businesses who want to avoid penalties for non-compliance with tax laws and potential issues with stakeholders. By implementing improved tax software, businesses can streamline the audit function by making them more effective and efficient. Modern accountants need to understand new accounting software and financial models to conduct increasingly complex audits effectively, according to Aron Govil.
Accountants, like other professionals, are increasingly turning to their mobile phones to access financial data. Because of various reasons, including the pandemic, accountants nowadays work from remote locations using mobile connectivity to interact with their clients. Accountancy firms can now use mobile apps to manage their relationships while on the move. Using these mobile apps, firms can now generate and send invoices, reconcile entries, create expense claims, and add receipts, etc. from their smartphones
Even though it may seem strange territory for traditional accountants, social media has now become essential for accountancy and audit firms. Social media is a useful platform for them to engage with their clients for building brand reach and boosting the rate of engagement. Accountancy firms can leverage the power of social media to connect with existing and potential clients like businesses selling products.
After having been insulated from modern technology for years, contemporary accountants have now realized that they need to understand and use the rapid advancement in technology to sustain themselves and thrive in the fiercely competitive accounting industry.