Artificial intelligence, blockchain, cryptocurrency: the ABCs of 2020. Like all other industries, the accounting profession is experiencing an increasingly rapid pace of change. Technology is likely not the first thing you think of when you think about accountants, but it has transformed the industry from pencil and paper and outdated financial information (just a few short years ago) to real-time access to financial information and the ability to provide feedback as soon as transactions occur.
The modern accountant is using tools such as QuickBooks Online, Sage Intacct, Bill.com, Expensify and others to streamline data entry and transform the traditional accountant into a well-informed business advisor. Artificial intelligence and bots are automating repetitive tasks, blockchain is creating an audit trail that is far more complex than what has historically been available, and cryptocurrency has introduced a hackable currency that is difficult to value. Technology has drastically changed the way data can be transferred, allowing information to be sent securely and instantaneously.
By leveraging technology, business owners have more options for outsourcing and automating day-to-day tasks, giving them more time to focus on value-added activities like strategic planning, product development, sales and marketing, customer relations and others.
Technology: Our greatest asset or weakest link?
Relying exclusively on historical financial statements is like driving while only looking in the rearview mirror: you can see where you have been, but lack insights to help understand where you are headed. Choosing optimal accounting software and enterprise resource planning (ERP) systems can directly improve profitability, transparency, efficiency, controls, and security. While an enterprise or accounting system may appear to be adequate, an unreliable or outdated system can negatively impact a business. Slowed operations and productivity, security vulnerabilities and limited to no cloud functionality are just a few consequences of working with the wrong system.
Outsourced, cloud-based systems offer customizable dashboards that provide key business and financial data in real time. Having 24/7 access to this information from multiple devices helps business owners manage operations and cash flow more effectively and identify and address issues proactively. As businesses becomes more complex, traditional enterprise and accounting systems may lack the features necessary to keep up with ever-changing financial challenges. An outsourced model using cloud-based solutions can provide instant access to cutting-edge technology and experienced personnel without the need to invest in additional software, equipment, or human resources.
Regardless of an organization’s size, there are solutions that fit the industry, fulfill operational needs, help accomplish daily tasks, and give insight into the organization’s financial health on demand. With hundreds of options, each with different versions and features, selecting the best accounting or ERP system can be a lengthy, frustrating process. A leading-edge accountant can work with you to help identify the best fit, while keeping the future needs in mind.
Although technology has transformed how accountants receive information, it has not changed the need for this specialized role. In fact, accountants may have become more of a necessity than ever before. Partnering with an accountant who understands how to leverage technology is critical to ensuring your business is positioned for growth and prepared for the changes that will occur.