3 Ways Technology is Changing the Future of Accounting

We are currently living in a technology driven era where everything is dependent upon technological solutions. In addition to changing our day to day life, technology has also transformed the way businesses used to work. Now, using technological solution is not an option for businesses, it has become a necessity. Although, there are various parts of a business, where technology has taken the lead role but in this blog post, we are going to talk about how technology has changed one of the most important part of businesses – accounting.

Accounting has gone through a very vast phase of evolution which has allowed it to shape into the form in which we witness it today. Earlier, accounting was considered as a very boring, dull and repetitive profession where accountants have to deal with only number and piles of papers. But now everything has changed in accounting.

The modern day accountants are considered to be tech-savvy who play major role in some of the most important decision making processes of a business. All this change has been made possible because of the introduction of technology.

Now, accounting has become paperless, effective, productive, accurate and quick and all the credit goes to the modern day technological marvels. So, let’s see how technology changed accounting and technology will change the future of accounting.

1. Software solutions

One of the biggest changes came into accounting because of the introduction of software solutions. Software solutions slowly became human’s best friend as it allowed us to automate all those tasks which were earlier done manually and took a lot of time. The same thing happened in the accounting industry. Managing everything on paper was one of the most cumbersome parts of accounting and it was not only complicated but prone to loss as well.

With the introduction of software solution, automation became the key to success in the field of accounting. With the help of software solutions, accountants become quick and accurate. Due to minimal manual workload, the chances of mistakes reduced and automation allowed the accountants to get finish accounting operations much quickly. But just when people started thinking that this is the best form of accounting, the amazing cloud computing came into the market. Custom software solutions can be implemented by software development companies like EcDev Studio.

2. Cloud solution

Nobody realized the limitations of desktop installed software solution until cloud computing cam into picture. Just like any other technological upgradation, people find the available technology to be the best until a new technology is not introduced in the market. Cloud computing was making revolutionary changes in all the industries and it slowly became a new normal for businesses as well. People were getting palpable results by using cloud computing solution and the same thing happened in the accounting industry.

Cloud accounting software allowed people to see the limitations of desktop installed accounting software and this realization made people move from desktop to cloud. The amazing cloud accounting solution like QB on the cloud, offered people anywhere, anytime access, high uptime, enhanced security and much more.

CPA`s have replaced their traditional accounting tools with cloud based tools such as Quickbooks enterprise cloud hosting. Some new cloud apps like MS Teams have come out recently similar to Slack that will hopefully persuade more firms to adopt team chat tools.

All this advantages were proving to be a magic wand for accountants, as they were able to work on the books from any corner of the world and at any time. They were also able to collaborate with other staff sitting at a distant location without compromising on the security. Cloud hosting proved to be a revolution for the accounting industry and it changed everything for accountants.

3. Artificial Intelligence

Now, the next big thing in accounting is going to be artificial intelligence or AI. Currently AI is in its infant stage, but soon with some more innovations and improvements in this field, it will surely become an integral part of accounting industry. Analyzing a large amount of data is an important part of accounting industry but dealing with gigantic amount of data is time taking and complex as well.

If machine learning program is fed with enough data, then it can give accurate predictions and find our patterns which are impossible to spot by humans. This is just one application of AI in the accounting field as in future, we may see multiple AI applications being used in accounting.

Technology is a vital part of the human race and it doesn’t only allow us to become effective, accurate and productive, but it also allows us to get a glimpse of the future possibilities. Accounting will keep getting better and better through technology and what we consider best today will become better with technological evolution.