The world has seen a rapid transformation, mostly because of the introduction of technological changes in accounting. Accountants in today’s world are not overburdened with task-oriented projects anymore. Since the advent of online accounting, accounting programs have become more and more automated. As a result, the role of the accountant has reduced down to that of an advisor. However, this shift in the role of the accountant asks for a newer skillset which includes judgment skills, professional skepticism, and critical thinking skills. As much as the accounting world has been revolutionized, the need for these soft skills remains, and accounting firms will put them on high priority when recruiting employees.
Recent Advancements in the World of Accounting
The technological changes have changed the role of an accountant drastically. All the mundane, repetitive tasks have been computerized. The work with paper has been minimized and instead now takes place on software packages and spreadsheets. Technology has also made it easy to strengthen the links across the international border as the accounting practices have aligned globally. With the advent of globalization, the standardization of accounting practices has taken place. Regulation has been transformed completely as accounting records can be accessed anywhere anytime.
Accountability has taken a new rise in the accounting profession. Technology has raised the standards of accounting, auditing, and ethical standards, making them more complex than they ever were. Let’s have a look at some of the top technological changes that have replaced small accountancy practices in today’s modern world:
1. Artificial Intelligence (AI) + Robotics
Artificial intelligence and robotics are constantly changing the world around us. For the accounting world, they have automated complicated and monotonous tasks. The results for these tasks are now faster, accurate, and efficient, and the cost of doing them has reduced drastically.
2. Cloud Computing
With the advent of cloud computing, it has become easier to share files in just a matter of seconds. The computer processing resources can be shared to any other computer or device on demand. Consequently, accountants now have the ability to execute tasks related to accounting from anywhere they are. Moreover, they can share all the financial details and reports through cloud computing. This technological advancement has given accountancy practice owners the capability to spend more time engaging with their clients. More focus can be spared for developing business strategies as compared to being burdened by repetitive tasks without cloud computing.
3. Tax software
There has been a lot of innovation with tax software. Margins and error are now a thing of the past as tax software has become extremely efficient and accurate. It has made the management of tax for businesses a lot easier by helping them avoid mistakes and penalties as a result of them. A better tax system also makes it easy to audit by making it effective and efficient. However, with all the advancements in the financial sectors, the auditors and accounts would have to learn everything about them and have the understanding to do their work effectively.
4. Accounting on your smartphone
Another major technological advancement is the availability of accounting services on your smartphone. Xero, the cloud-based accounting software company has been working on bringing the mobile age of accounting. Many other big names have also launched apps and are providing basic accounting features on smartphones that help accountants and clients stay connected. The apps on smart devices let accountants and business owners manage their finances and records while on the move. Firms have the ability to send invoices, reconcile, create expense claims and add receipts from their smart devices
5. Social Media
Social media is another area that has hit the accounting world with its popularity. Firms now make use of social media to stay in touch with their clients and engage with potential clients. Social media acts as a platform for accountants to make their sales and market themselves. Accounting firms do realize the importance of traditional marketing. However, most firms fail to realize the importance of social media marketing. Social media marketing can do wonders for the accounting firms, and it should be integrated in one way or the other.