How Accounting Technology Improves Your Firm’s Efficiency

According to the IT advisory firm Gartner, worldwide spending on public cloud services is expected to grow from $275.5 billion in 2010 to more than $304.9 billion in 2021 — a growth rate of 18.4%. Similarly, when it comes to adapting to new technologies, accounting has been at the forefront, often by necessity. Accounting has a reputation for being staid, traditional and slow to adopt new technologies. In fact, I would argue that technology is transforming accounting—and in an equally exciting way, accounting is transforming technology.

By the time you graduate, you’ll be prepared to crunch numbers as an accounts payable clerk, a bookkeeper, or another type of financial clerk. Artificial Intelligence and Machine Learning are also playing a significant role in the accounting industry. These technologies analyze financial data to find patterns and trends that can be used to predict how the firm will do in the future. Less manual labor and data crunching for accountants means more time for high-level analysis and decision-making, thanks to new and developing accounting technologies.

Degree Options and Requirements

It is no longer acceptable to call oneself an accountant simply because the general population lacks familiarity with compliance and basic bookkeeping. Accountants of the future must provide specialized services for their clients that technology can not handle. Rather than serving as a general accountant, accounting professionals should understand their niche and focus on specific areas of taxes and financial coaching. how to account for the value of finished goods inventory refers to a wide range of new products and software accountants are implementing into their toolsets to ease clients’ worries and increase the services they provide. Artificial intelligence, automation, data analytics, and other software will continue to improve work processes and increase the accountants’ accuracy, efficiency, and productivity. Schinterria specializes in providing accounting activities, financial reporting, business operation consulting, and payroll services for nonprofit and public sector organizations.

Becoming well-versed in OCR, among other growing trends, can make you a highly valuable employee for even the largest accounting firms. The integration of OCR with accounting software allows accountants to perform a simple digital search to find the information they need. The best part is that OCR allows accountants to cut hours of work from such tasks as itemizing receipts, organizing invoices, tracking expenses, and eliminating paper clutter. The business landscape is quickly approaching the no-coding era of accounting, which means there will be virtually zero data entry required in the industry. Automated technology has always presented the double-edged sword of convenience against the replacement of humans with technology. In the past, accountants struggled when making the transition to more advanced technologies.

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Here’s one of the few accounting firms that are leading the way on this trending emerging technology to offer no-code development as a service to help their clients automate more of their accounting. A big part of what many accounting firms and accounting professionals do is process and enter financial documents into an accounting system. All the benefits that I listed for cloud services apply to tax software as well. The purpose of this program is to prepare students for entry-level positions in accounting and business, or to provide supplemental training for persons previously or currently employed.

• Due to her extensive experience working with nonprofit organizations in all areas of tax preparation and planning, Patty understands the vigorous reporting requirements of the Form 990.
• When it comes to doing business online, security and accessibility are the main concerns for all businesses dealing with client information.
• Now, there is more time to engage with the client and focus on business strategy instead of getting burdened with detailed processes.
• Not only does this mean more productive employees, but it also results in cost-savings and reduces the possibility for human error.
• In the latter half of the 20th century, technology companies developed innovative spreadsheet software for accountants to use on computers.

Lisa regularly researches tax law and develops strategic plans to minimize clients’ income and estate tax liabilities. Filibert also has experience assessing, observing, and testing internal control procedures and compliance with laws, regulations, and grant requirements. OCR applications scan printed and handwritten documents and convert them into machine-readable text. When they can scan a handwritten note (or photograph of a note) and create an electronic document, professionals can quickly share information with colleagues and clients.

Alternative Ways to Earn Credit toward this Degree

Such technologies are actively used as AI-driven automation, blockchain transactions, cloud-based solutions, data analytics, and cybersecurity measures. With an emphasis on accountability, Patty helps nonprofit organizations meet their financial reporting, operational, and federal and state filing requirements. Due to her extensive experience working with nonprofit organizations in all areas of tax preparation and planning, Patty understands the vigorous reporting requirements of the Form 990. Patty is mostly retired, but still works with Rubino on an as needed part-time basis.

That said, I believe it’s important to understand and monitor the technology trends happening to see how they may apply to your business operations in the future. In high demand is RPA, one of the more popular of the latest technologies to help companies automate rule-based tasks in accounting and to eliminate manual entry. By taking the right actions today to increase your accounting efficiency, your company will be in a better position to reduce friction, remove obstacles, and provide your clients with a more seamless experience both now and in the future.

Staying up to speed with artificial intelligence in accounting

Client portals are websites where clients can access their financial data, communicate with the accounting department, and submit invoices and receipts for processing. Whether you’re an accountant for a small business, the CFO of a successful accounting firm, or a student completing a bachelor’s degree in accounting, you must stay on top of technology trends and advances. Clients expect accountants to provide automated services that meet their needs in the least time possible. They expect robust information systems, excellent communication, and an online presence just like any other business. She has experience working in public accounting for a range of medical, Informational Technology, and non-profit organizations.

If the accounting software you rely on isn’t current with changing times, you could find yourself and your company behind the curve within a few short years. In driving the adoption of new technologies, for example, it was the accounting profession that first used adding machines (specifically for use in tax calculations), which ultimately were precursors to the computer. In modern times, accounting, including management accounting, drove the adoption and improvement of ERP systems, which have revolutionized business processes. If you’re trying to streamline your finance department, accounting software is an essential component. The fast-paced business environment of today demands you automate elements of your accounting department so you can focus on larger…

What is accounting technology?

The content introduces individuals to the preparation, presentation, and analysis of business reports. Upon completion, students have acquired fundamental accounting skills, including preparation and interpretation of financial statements, budget development, cost analysis, computer applications and tax compliance. Social media is a tool that provides those in the accounting profession with a powerful sales and marketing platform to connect them with potential clients. Marketing is just as important to accounting firms as it is to any other industry, after all.