Bellamie Judson is interested in the future of accounting and approached the DOKKA team recently to offer her thoughts.
Her thoughts and opinion on the future of accounting specifically focussed on cloud based systems, automation and machine learning are below.
Please note that this view on the future of accounting is the opinion of Bellamie Judson who is not associated with DOKKA in anyway.
Accounting is an integral part of a company’s operations, but it’s gotten an unfair reputation of being too inaccessible and dry. This has led to many business owners downplaying the need to look at their accounting operations in favor of flashier aspects like branding and sales.
This is where tech comes in. When used properly, tech can make accounting a lot more accessible while giving business owners the insights needed to push their company forward. Below are three top trends to examine when it comes to the future of accounting.
Three top trends to examine when it comes to the future of accounting.
Cloud-based accounting has been on the rise thanks to the flexibility it grants businesses. After all, cloud accounting allows both business managers and accountants to access information from wherever they are while also keeping all invoices and bills in one comprehensive system.
As many companies are weathering the global health crisis by adopting work-from-home policies, Accounting Today cites cloud systems as a way for bookkeepers to access information from anywhere, in real-time. This immediate access also means that you can continue to reach out to employees and partners regarding payments.
An added, often forgotten bonus to cloud computing is that it foregoes the need for software updates. Cloud providers maintain their servers on their own, which means that IT personnel don’t have to worry about running maintenance checks.
Automation simplifies complicated ledgers and spreadsheets, and allows for streamlined reconciliation during financial closing. Automated accounting software also lets users retrieve information faster, which can streamline day-to-day- business operations.
However, contrary to popular belief automation isn’t meant to put everybody out of work. After all, account managers still need to be able to monitor changes in ledgers and examine how a company’s finances can be best allocated. It’s therefore important that today’s accountants are comfortable with these tech tools in order to make finances more accessible to their clients.
With Maryville University estimating the demand for accounting degrees will increase by 11% between 2014 and 2024, there is ample opportunity for trained professionals to use this tech background and help their organizations grow financially. Automation offers a scalable way for businesses to handle their finances as they grow; trained accountants can help navigate this growth as needed.
Last but not least, machine learning is necessary for accountants to forecast trends. This is particularly helpful for larger organizations, especially those with outposts in several countries. As with automation, some are worried that this ability to predict trends will detract from the forecasting roles of today’s financial professionals.
To assuage these fears, change management consultant and professor Mathew Donald notes that this disruption actually opens up opportunities for accountants. Data is only as useful as its analysis, and so relying on AI to predict trends allows for financial professionals to play a larger role in using these trends to shape business decisions.
Again, this speaks to the need for today’s professionals to be comfortable with going beyond the usual bookkeeping tasks, utilizing tech tools to analyze information.
A previous post on How Innovation Has Created the Smart Financial Document Management System highlights just how dynamic an accountant’s role actually is. With innovation being the name of the game when it comes to creating a competitive edge, the tech-based future of accounting allows skilled professionals to drive change in their companies.
Do you have thoughts on the future of accounting?
Do you have strong opinions on where accounting will be a decade or two from now? How cloud accounting, automation, machine learning and other factors will change?