No matter what industry you’re working in, it’s impossible not to notice how quickly technology develops. Accounting is no exception. In fact, it's often one of the first industries pushing the tech envelope. Accountants have adopted various digital tools as technology has progressed, which enabled them to eliminate a lot of paperwork and to optimize many crucial processes. As technologies using machine learning and artificial intelligence continue to evolve, more and more people want to know what machines are capable of, and whether they are going to replace humans.
AI and Accounting
Even though AI develops at a rapid pace, you shouldn’t worry about accounting becoming human-less. AI can work with massive amounts of data much more efficiently than humans, and some time-consuming tasks would be impossible to complete manually. However, machines also have their limits. A great example of such limits is AI-based translators. Even the best programs on the market still have a hard time understanding the context, and professional localization services like The Word Point aren’t going to lose their jobs anytime soon.
The same goes for accounting. Even though AI-driven programs can already perform many accounting tasks, they are far from replacing human accountants. Again, context comes into play here. Humans add an element of understanding that machines just can't manage. However, AI and other kinds of advanced technologies can help accountants by improving the accuracy, speed, and quality of data, while also reducing manual labor.
For example, some programs can capture and enter data from invoices of all kinds automatically, creating bills as soon as you receive the invoices. You can use AI-driven apps to track invoice numbers, vendor names, and due dates. Such tools improve as you use them, learning from every task, and they can even categorize your digital ledger for you.
However, AI isn’t the only technology used in the new generation of accounting applications. Let’s take a look at the strongest trends in accounting software so that you can use them to your advantage.
1. Cloud Applications
Experts predict that the global market for accounting apps will reach $11.8 billion by 2026. Many such apps are cloud-based, allowing users to quickly access the necessary data from any device connected to the internet. The ecosystem of apps that integrate with different accounting platforms constantly grows so that various industries and businesses can streamline countless back-office processes.
However, it seems like desktop software isn’t going to disappear anytime soon. For example, even though QuickBooks Online has more than two million subscribers, the user base for QuickBooks Desktop doesn’t decrease. The main reason for such a situation is that as much as 80% of online subscribers have never used any accounting software before. They don’t migrate from the desktop to the cloud but start from scratch.
2. Blockchain
Blockchain is one of the most discussed technologies because its area of application goes far beyond cryptocurrencies and electronic payments. For instance, blockchain is a delivery method that enables several users to access the same data in real-time. You can hash your risk profile to a blockchain, and then both you and potential investors will be able to access it simultaneously.
When one party makes changes in a blockchain ledger, everyone can see these changes as soon as they are validated. Thanks to encryption that is almost impossible to break, blockchain introduces new standards of transparency and security. Besides, transactions that used to take many hours or even days, can be done in minutes when using blockchain.
Blockchain also allows for more accurate and faster compliance, reconciliation, and auditing. All the transactions are recorded in the blockchain so there’s no need to worry about reporting them.
3. Automation
It makes sense to expect such tasks as audits, tax preparation, banking, and payroll to become fully automated in the nearest future. AI-driven software can help eliminate manual data input, update accounting records, and adjust financial records to the necessary accounting principles.
Accounting automation tools can process spreadsheet-based data much faster and more accurately than when it’s done manually. While accountants won’t need to perform this job, they will be able to focus on forecasting, risk analysis, and other strategic tasks. Therefore, organizations will still need accountants, no matter how smart AI tools will become.
Intelligent software will not replace but empower accountants, adding more value to their judgment and experience. The only thing automation will take from accountants is the necessity to perform transactional tasks. Accounting is a dynamic area that needs intellectual assessment.
Conclusion
Artificial intelligence, blockchain, and cloud computing allow for developing intelligent accounting apps that can simplify a variety of accounting tasks and introduce new standards of reliability and security. Although intelligent software won’t replace human accountants in the nearest future, it will certainly change every accountant’s daily routine. Accountants are already able to spend less time working on repetitive tasks. In the future, they will be able to focus exclusively on complex strategic tasks, while machines will deal with all the technical aspects.
Author Bio: Frank Hamilton is a blogger and translator from Manchester. He is a professional writing expert in such topics as blogging, digital marketing and self-education. He also loves traveling and speaks Spanish, French, German and English.