How Technology is Shaping the Future of Accounting?

The advancements in technology that are accelerating almost every industry, have led machines to take over human labor. With humans relying more on technical support systems, the accounting industry is also witnessing a huge change in their working environment. Like many other accounting firms, accounting firms in UAE have accepted the need for switching to automated accounting practices. In a profession where speed, accuracy, and quality of data matter, adapting to intelligent technologies like cloud computing, blockchain, artificial intelligence, etc., is not only a wise choice but a necessity to remain in the mainstream. 

Impact of new trends in accounting 

Technology is, without a doubt, transforming the accounting industry with accountants rising above the concept of just being a number-cruncher. The accuracy provided by accounting software has helped them to become trusted advisers and value-added analysts in the field. This is why most accounting companies have placed their trust in these technologies, which render their support to reduce manual labor. Human interference could now be invested in other productive activities like strategy development and advisory work.

Cloud – Transforming Accounting

Working in the ‘cloud’ could be considered as a significant trend in technology. Resources like data and computing capabilities could be instantly accessed using cloud computing. The continual update of information by the cloud-based system comes as a great advantage for both accountants and clients. This will allow them to analyze the data and make decisions according to the information provided in real-time. 

According to the Journal of Accountancy, on the updating of the information on the system, the cloud-based technology makes sure of “constant monitoring, rather than intermittent analysis.” With the progress in intelligent technologies, the companies moving their information to cloud-based systems have also increased. This has compelled accountants to be efficient in leveraging the cloud to deliver effective services to their clients. 

Artificial Intelligence is an Intelligent Method

Repetitive and complex works may seem to be a tedious task for human beings, but not for artificial intelligence (AI) or robotics. This technical approach to accounting can reduce the operating cost and increase the efficiency of the work by automating even difficult tasks with high accuracy. With major accounting software like Intuit, OneUp, Sage, and Xero offering capabilities to automate data entry and reconciliation, the application of AI and machine learning to bookkeep is becoming a reality, according to Forbes. As commented in Forbes, it is estimated that “by 2020, accounting tasks – but also tax, payroll, internal audit, banking, etc. – will be fully automated using AI-based technologies.” The future of accounting looks glorious with a touch of artificial intelligence and takes it to the next level. 

Blockchain – Highly Secure Database

Blockchain or a distributed ledger is another trend that has a great impact on the future of accounting. Blockchain makes it possible to store and record data securely and accurately, by using cryptocurrency within a user-to-user network. The smart contract enabled by blockchain technology helps in protecting and transferring ownership of assets. It also renders to verify people’s identity and credentials and thus providing a safe and secure retrieval system. It opens up the possibility of a new type of accounting ledger, where information can be updated and verified without having to fear being altered or corrupted, as explained by accounting today. Accounting professionals who are willing to go along with the trend should be familiar with relevant software programs to become an expert in using blockchain. 

It is necessary to evolve with the changing technological trends to stay competitive in the field of accounting. With the boom in the accounting industry, it is practical to make use of the technological advancements witnessed in the industry to make sure that you are not left behind by other companies. These technologies have the potential to shape the future of accounting, so it better that we fit into the form perfectly when that happens.