Learn more about the technology trends that will help grow your firm and support your clients in 2022 and beyond. Register here for the 9 Developments Shaping Accounting’s Future webinar on November 18, 2021, at 2 p.m.
Evolving regulatory requirements are just part of the equation when it comes the emerging industry trends impacting the accounting profession. Technology and the ongoing innovations in cloud-based solutions are likely to be one of the most transformative forces in your practice over the next three-to-five years.
Research firm Gartner estimates that by 2024 more than 45% of IT spending will shift to cloud-based technologies, and in many instances, this will include accounting software—driving the demand for accountants with strong cloud accounting software skills.
Key to the changing technology landscape for accounting firms is the introduction of new tools with real-time data analytics and artificial intelligence (AI). To thrive in this new technological ecosystem, accounting firms will need to have a clean, reliable, and secure data infrastructure. This may present a challenge for firms that have legacy on-premises systems, not only from a cybersecurity and workflow standpoint, but also in terms of revenue.
This is because it is only by using a new breed of cloud-based accounting systems that firms can open the door to automated financial reporting, cash management, accounts payable, and month-end close processes. The automation of these tasks will increase your firm’s productivity and profitability.
With this in mind, here is a closer look at the three technologies poised to have a lasting impact on the accounting profession: AI, analytics and cybersecurity.
1. Artificial intelligence. Once considered a futuristic technology, AI is now considered by many to be mainstream. There is a growing consensus that AI can and will have a significant impact on just about every industry and business role.
Accounting firms and their clients are already implementing solutions featuring AI to automate mundane, easily repeatable tasks, freeing employees and firm owners to focus their time on higher-value activities.
How will AI impact your firm? Consider this example: using machine learning, a type of AI, a company can feed a year’s worth of expense reports into a travel and expense system with the goal of teaching it to flag anomalies that might indicate fraud or human error. The more reports the system has to study, and the more time it spends analyzing them, the better it becomes at identifying potential issues, creating the opportunity for time and cost savings.
2. Analytics. One of the key advantages of cloud-based technologies incorporating AI and machine learning is the advanced analytics capabilities they offer for users. When more data can be analyzed more quickly with advanced reporting tools, the output is richer and offers deeper insights. This allows accountants to not only save time and increase productivity on data processing functions, but also provides the opportunity to offer additional advisory services and add more value to client relationships.
3. Cybersecurity. Using cloud-based technologies is often more secure than on-premises versions because the right vendor will store all of the client and other data your team has stored in accordance with leading cybersecurity practices most businesses cannot match on their own. In addition, the technology provider will update your solutions frequently in response to emerging security threats. This provides peace of mind to your clients and mitigates liabilities for your firm. Cloud systems also provide the redundancy necessary for business continuity should you need to relocate your firm, work remotely, or face some other business disruption.
It is now a fact: cloud-based technology innovations are disrupting the accounting industry. This trend is quickly transforming what used to seem like futuristic applications and use cases into mainstream solutions. Over the next few years, the technologies described above, along with other developments, will help accountants increase the efficiency of their workflows, access richer data, securely serve their clients, and extract additional insights from every accounting process. The only remaining question is, how will your firm respond?
Learn more about the technology trends that will help grow your firm and support your clients in 2022 and beyond. Register here for the 9 Developments Shaping Accounting’s Future webinar on November 18, 2021, at 2 p.m.