Advancements in science and technology have revolutionized the field of accounting, making it easier in some aspects while more intricate in others. Nowadays, machines can perform various accounting-related calculations with exceptional precision, almost completely eliminating the possibility of human error. However, the presence of fractions of cents in a cryptocurrency wallet can make the calculations and transactions more complicated.
Today, there are several technologies available to assist accountants in their work. Some of the notable ones include:
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Companies rely on off-site servers to process business applications and store data. They no longer need to invest in bandwidth or data storage space.
The coordination and integration of entire enterprises via the cloud can lead to deeper relationships, improved communications, and reduced travel and operational expenses. With the help of cloud-based software like Xero, accountants and their clients can securely upload and access relevant information from their mobile phones or laptops, allowing them to virtually share materials around the clock and across the miles. This software also enables multiple accountants to work on the same project remotely, making it easier to collaborate and complete tasks efficiently.
Automated technologies have revolutionized the daily operations of accountants, allowing for easier and more accurate recording and reconciling. This frees up accountants to focus on more complex analytical and forecasting tasks.
Automation has the ability to take over monotonous and error-prone accounting tasks such as data entry and bank reconciliation. Accountants need to be open and prepared to discover and implement new technologies that can assist with time-consuming duties. Even basic Excel macros can aid in expediting accounting processes.
Blockchain technologies are not yet capable of helping with accounting tasks. However, blockchain technologies such as cryptocurrency and NFTs have an impact on accounting practices. The technology that powers the permanent and secure ledger entries in blockchains has significant implications in the field of accounting as professionals work towards enhancing transparency and reducing security issues.
Enterprise Resource Planning (ERP) systems use integrative software to connect different departments within an organization. This allows company leaders and their advisors to have a complete 360-degree view of the company’s performance and business operations in real-time. This provides deeper insights and enables comprehensive decision-making based on accurate and up-to-date information.
Readying accountants for the digital age
The relationship between technology and accounting is a two-way street. Technology has made it possible for accountants to automate repetitive tasks, allowing them to explore new opportunities and reach greater heights. Furthermore, emerging accounting trends, like the use of fractions of cents in cryptocurrency, will spur the development of new technologies to help us analyze and process data more effectively.
Accountants require a diverse range of skills along with a strong ability to understand and implement accounting principles, government regulations, and tax laws. They should also be well-versed in merging information technology with information systems and should focus on adopting and optimizing new software to remain competitive in global markets. As accounting is transitioning from a number-crunching job to a role that involves interpreting and presenting data, accountants should possess exceptional management and communication skills.
To prepare ourselves for the future, it is crucial to stay updated with technological advancements and embrace new technologies. As professionals, we must make efficient use of resources. One way to do that is by investing in ourselves, which we can accomplish by partnering with and participating in accounting membership organizations that assist us in meeting our CPE learning objectives and keeping our skills relevant.