5 Technology Trends that is Transforming Accounting
Digital transformation stays a clear leader in technology trends, due to the growth of data to be handled at any one time. Accountants will need to embrace the rapid advances in accounting technology if they want to remain relevant in the accounting industry.
Automation
Automation has been a growing trend in the accountancy and finance sectors, with routine administrative and rules-based tasks being automated more and more. Automation is growing beyond accounting or bookkeeping software to an enterprise resource planning (ERP) system. Using an ERP allows organizations to combine their accounting data and financial data with other critical areas of their business, such as supply chain, order, and production management. Under an integrated system, all important information can be entered into a single application and is accessible across various channels.
Data Security
Accountants handle sensitive client information related to their finances, payroll, and taxes. Data breaches will be a huge blow to their credibility and reputation an could subject them to lawsuits. Personal information is increasingly at risk of phishing, hacking, scamming, ransomware attacks,etc. Companies will increasingly invest in cyber security tools and protection to mitigate against these attacks and to avoid recovery costs in the event of an attack.
Artificial Intelligence (AI)
Artificial intelligence software is one of the emerging technologies that will shape the future of the industry. As the volume of data to be handled increases, so too does the opportunity to introduce processing efficiencies through artificial intelligence.
Data Insights
A significant number of companies are investing in data analytics and visualization technologies as the work of accounting and finance professionals shift from transaction to analytical processing. Data visualization and analytics plays a vital role in sound decision-making.
Digital signatures
Companies that have adopted a work-from-home culture are implementing practical initiatives to support their decentralised operations such as digital signing. A digital signature is a mathematical technique used to validate the authenticity and integrity of a message, software or digital document. It’s the digital equivalent of a handwritten signature or stamped seal, but it offers far more inherent security. Benefits to using digital signatures include timestamping, time savings, traceability and legal compliance.
