Technology in Accounting

Keeping Up

As we have recently covered in my previous posts, technology is moving fast within accounting. However fast technology continuous to move, accountants need help to keep up with it. In this post we are going to go over some advice in how you can prevent being left behind in this changing profession.

The first thing is training. Using this technology may not be as easy as people may assume. Although the purpose of technology is to make the work of accountants easier, there is still training that must be done in order to achieve that outcome. Although your firm or organization will provide some training as new technology is introduced, it will be helpful to go out of your way and continue to educate yourself in order to fully take advantage of the technology. For example, there are online resources such as webinars and workshops.

Another factor is security. Although that may seem like a problem for IT, it is important that you adhere to security protocols in order to avoid any complications for your work. Especially since accountants are dealing with the firm’s finances it is important that you understand the system and software you are using, and to use it cautiously. By doing so, you can prevent your technology from becoming a weakness in your department and can continue working on the bigger picture.

Next is updating. Since majority of an accountant’s work will depend on the technology implemented by the organization, it is important that you constantly keep your system updated. Outdated systems can cause lags in your operation which can can disturb the efficiency in your accounting operations. The vendors of your technology provide updates in order to continue to provide better service to benefit you. Thus, it is important to stay updated on your systems in order to stay ahead with the advancement of technology.

Lastly, and what I think to be one of the most important, is to consult. Getting comfortable with new, advanced technology can be difficult thus, don’t attempt to figure things out on your own. It will be more beneficial to you to consult to those who will have the answers that you need. Reaching out to your IT department or the very vendors of your new technology. It will save a lot more time and reduce possible complications than attempting to figure out your questions on your own. However, if you don’t have any questions, it is still recommended to reach out to these specialists in order to stay updated on the software you are using and learn information that can help boost your productivity.

Accounting is a profession needed in all organizations and firms. Thus, organizations will implement advanced technology in order to improved the productivity of this department. However, the technology is only as good as the users. Their potential can not be shown if the accountants aren’t knowledgeable of the software. That is why it is important for you to remain aware of the technology you are using and continuing to remain updated on it in order to take full advantage of it.

What’s Changing?

In the previous post we discussed the pros and cons that organizations are considering in regard to moving towards a more technology based accounting department. Despite the cons provided, it is undeniable that businesses are attracted to implementing technology within this department to improve their overall productivity. Therefore, we’re going to discuss how technology is changing accounting.

1.Cloud Computing

Cloud computing provides accountants with more freedom by providing all financial information in the cloud. The cloud will provide real time tracking, payment information, invoice reminders, and administrative access all online. This means that accountants will have the ability to perform their tasks and accesses their information through any device with internet access. Thus, accountants can do their jobs in any location without being restricted to one.

2.Information Online

In addition to innovations like the previous one mentioned, all information is now able to be shared online. They can be managed to allow only certain people to have access and others who can make changes. This allows accountants to work together with other individuals without having to meet face to face. In fact, this information can even be set to be shared with clients in order to provide transparency. Therefore, accountants can constantly show the progress they are making with their clients information without having to set more meetings than they need to.

3. Social Media

Although social media isn’t making any internal, physical changes within the accounting department, it is a powerful tool used more for engaging with cliental. Technology isn’t only making an impression in accounting, but also everywhere else. Therefore, accountants and accounting firms are taking advantage of social media in order to reach out to more potential clients and equip themselves with a sales and marketing platform. It is also a simple tool for accountants to continue to reach out to their current clients.

4. AI (Artificial Intelligence)

Small implements of artificial intelligence has already been made in order to help accountants in their everyday tasks. Although people fear that having AI in accounting will rid the profession altogether, it will actually improve accountants in their much more complicated tasks. These AIs are were built to handle complex, routine tasks that accountants find themselves doing on a daily basis. By having AIs do these tasks that would have taken accounts hours to do, it lessens their daily work load and shifts their main focus to more strategic work.

These are only some of the many ways that new accounting technologies will change how accountants work. It is ambitious to state that these implementations will take over humans in the accounting department, as many would assume. However, technology is only transforming the career as we know it, not replacing it. In fact, according to the leading research firm Gartner, technology like AI are set to create more jobs than they will replace. As mentioned earlier, firms are planning to use these technologies to perform repetitive tasks while providing their accountants with more time to focus on the bigger picture. Despite the positive changes that technology is making within this department, companies are always going to need that “human touch” to interact with their clients and human intelligence to interpret the data provided.

The Future of Accounting

It comes as no surprise how technology has made an impression in accounting offices. The talk of technology is one that will either raise fear or joy within accountants on what this may mean for their future career. In this post we will be addressing the pros and cons of technology taking place in accounting.

Pros

It’s clear how technology in accounting will be beneficial for various organizations. Since technology comes with the promises of improved productivity and efficiency within the workplace, organizations are motivated to implement them within their own businesses. Some examples of the benefits include:

Automation

By implementing new accounting software, doing tasks such as entering data, creating electronic documents, and producing receipts can be handled completely electronically. The systems prepare simple data entry to make it easy for accountants to input data and click a single button to generate financial reports.

Better Relationships With Clients

With technology making tasks easier and faster to complete, it provides accountants more time to focus on their clients. The different accounting systems and platforms don’t just benefit the accountants, but also their clients. Technology makes it easier for clients to communicate with their accountants which then leads to improving customer experience.

Faster Processing

As stated above, the technology for accounting is made to improve the efficiency of managing finances which includes a faster processing of them. A task dealing with large amounts of financial information that could have taken an hour can be done in minutes by inputing the needed data and allowing the system to do the rest. This also helps cut down an accountants long work hours!

Cons

The following are the possible disadvantages associated with technology taking over the profession. These include:

Technical Issues

Being dependent on computer systems can pose an issue when they suddenly stop working. We are all familiar with the times when our own technology suddenly stops working and we can’t do the tasks we need to. That is one of the biggest issues to arise by depending on computerized accounting.

Security

To add to the technical issues, if not managed properly the wrong people can get their hands on an organization’s financial information. With the rise of technology comes with the rise of risks. In order to prevent security breaches, companies may invest in security measures which will include additional costs.

Training

Since financial information will now have to be handled digitally, that means that accountants will need to undergo continuous training in order to prevent human error. Although systems attempt to make data entry simple, the individual must still understand the software’s functionality. Without the proper training, using the software may take longer than meant to and even lead to errors. Especially since technology is a continuously improving tool, accountants need to go through training in order to ensure they can adapt to these technological changes. In fact, being able to adapt to new technology is a skill more admirable compared to Excel.

Despite the disadvantages of implementing computerized systems into accounting, their benefits to the organization and even accountants is undeniable. What this means for accountants is that technology is changing the game. That does not mean that accountants won’t be needed, but rather accountants will need to be much more tech savvy. Being able to adapt to the changing nature will improve an accountants productivity and provide much more accurate results. Technology in finance is growing fast, and we should be growing along with it.