Technology is disrupting all industries and all companies that choose to keep adopting traditional methods of doing things are going out of business as clients migrate to competitors who are embracing technology. Here is how technology is disrupting the accounting industry.
1. IoT and Big Data
New technologies based on Internet of Things (IoT), analytics, big data, and business intelligence are impacting all areas of business life. Approximately 90 percent of currently available data was created in the last two years. This big data offers companies massive amounts of information as well as analytical tools to improve decision-making.
Hence, accounting professionals and financial advisors will utilize the same data to migrate from the simple analysis, data entry, and record-keeping to strategic business consultancy. Microsoft Excel is not a central analytics program anymore. Nowadays, CFOs and financial controllers utilize predictive analytics, structured data, and unstructured data to access a lot of client information, industry data, and financial trends to develop insightful forecasts for customers.
2. Mobile Computing
Around 68 percent of adults in the US had smartphones in 2015. In spite of mobile devices being common, their multiple numbers and various platforms remain to be an issue. Providers of accounting services need to determine the type of mobile devices being used by their customers and provide valuable apps on those devices. As consumers and businesses continue to use mobile devices to access the internet and their data, accounting services are adjusting to meet demand. For example, busy operators of small businesses want to maintain their books on the go by tracking financial data, recording expenses, and managing accounts.
Vendors of accounting software are reacting to this change by developing apps and online portals that are particularly designed for mobile devices. They provide military-level value-added features like security encryption and messaging systems. Accounting services will interact with clients and provide them with advice and updates in the form of chunks of data that are bite-sized ideal for small mobile devices. The objective is to aid them to manage their business on-the-go.
3. Connection Convergence
As high-speed internet and broadband progressively enter business locations and households, the capacity of CPAs, financial controllers, and bookkeepers to have two-way and high-speed conversations with customers through video streaming is more realistic. Broadband and TV services will increasingly converge. Even though there are current video call services like Skype that provide face-to-face engagement, they are not close to the high-definition, picture-perfect transmissions that will be available in the future. This trend will aid in quickening the globalization of the industry such that accounting firms can service customers around the world as well as those nearby, in a single meeting.
These adjustments are pushing the accounting industry to estimate the value they can include to the clients’ accounting processes. A good prediction is that robotic automation and machines will enhance the service value as opposed to detracting from the service. Basic services are able to be offered efficiently, letting accountants have plenty of time to discuss the current situation as well as future needs of the client.
4. Automated Data Entry
Automation is a critical driver in the disruption of bookkeeping and accounting. This results in the vanishing of manual data entry. Due to things like robust software solutions, automatic imports, and electronic documents, some companies are even able to do away with data entry fully. This causes more efficiency and lets companies better utilize human resource. For instance, a fixed assets software automates multiple accounting procedures and systems of tracking fixed assets, making the accounting of fixed assets more efficient.
Due to automation of workflows and data entry, there is quicker processing that results in more timely financials and real-time reporting. There is also increased accuracy and minimal human errors as well as significant reductions in order cost by 50-70 percent.
Keeping up with these trends and adapting them to your accounting business will ensure you stay ahead of the competition. You will increase your client base and revenue as you offer better service than before.