Three ways technology has positively changed the accounting industry

Discover how innovative technologies have evolved and improved the role of accountants

Technology has drastically changed the accounting industry over the years. Gone are the days when calculators, paper, and pencils had to be used to add up accounts payable. Today, all of the numbers can be input into specialized software to generate accurate data every time.

Although some are concerned about technology making the role of an accountant obsolete, there are indications that it has quite the opposite effect. 

In addition to a recent study finding that the employment of accountants and auditors is expected to increase 6% (about as fast as the average for all occupations) over the next 10 years, many believe that technology has expanded and improved the role of accounting professionals. [1]

What technology tools do accounting firms utilize? 

The popular technology tools that modern accounting firms have implemented include: 

• Cloud computing opens up time, space, and resources while increasing the flexibility of accounting firms by hosting software remotely on the cloud that can be accessed through the Internet. 
• Specialized software aids accountants by offering automated processing tools that significantly improve accuracy, eliminate errors, and increase efficiency. The most common of these tools include automated accounts payable software and payroll and tax automation programs. 
• Virtual communication platforms allow accountants to easily and securely share necessary information with colleagues and clients through applications such as Microsoft Teams. These platforms offer increased connectivity, efficiency, and reliability to clients and accountants alike, especially the ones that also offer mobile apps. 
• Enterprise resource planning (ERP) and customer relationship management (CRM) platforms can be integrated with key accounting processes like keeping track of expenses and invoices to manage all of an organization’s essential information in one place. This type of integration can streamline operations and improve the digital organizational structure. 

The accounting profession is also moving towards adopting other innovative technologies in the future such as:

• Artificial Intelligence (AI) in accounting is emerging as a tool to automate basic tasks, so that accountants can spend more time on the most important tasks that require an analytical and creative point of view. 
• Blockchain technology is predominantly used in the cryptocurrency industry, but could emerge in the accounting field as a new type of virtual ledger that can be continuously updated and verified without risk of alterations or corruption.  

Keep reading to learn how these technologies have changed the accounting industry for the better: 

#1: Reducing the margin of error

Perhaps the most impactful way technology has changed accounting is by drastically improving accuracy and reducing the margin of error in the industry as a whole.

By implementing technologies like the ones listed above, accounting firms can avoid errors for clients that could lead to costly tax penalties or poor business decisions. 

For example, specialized accounting software offers simple data entry that guarantees ledgers and financial reports are completely accurate by reducing the risk of human error from manual data computation. 

#2: Diversifying the role of accountants

In addition to reducing errors, the implementation of technology in accounting processes has opened up new opportunities for accountants to take on more specialized and strategic roles in their jobs. 

With technology automating repetitive and menial tasks, accountants can focus on more analytical and critical tasks such as:

• Data analysis and interpretation
• Advising and consulting on financial and other business decisions
• Developing new processes
• Performing future forecasts 
• Integrating new technologies into operations 
• Helping adjust to technology-driven changes in regulatory requirements

The diversification of an accountant’s role also means that it’s become more important for them to develop soft skills like communication, critical thinking, and problem solving in addition to their technical skills to better serve their clients. 

#3: Improving communication and connection with clients

Both of the prior points lead into the fact that the technological advances in the field allows for accountants to better serve their clients. 

The ability of technology to allow accountants to work quickly, accurately, and efficiently greatly benefits clients who rely on their accounting team or firm to help guide decisions and properly run their business operations. 

Certain technological tools also make it easier for accountants to communicate with their clients anywhere, at any time which is extremely valuable to a field as vital to business success as accounting. 

How we can help

By offering specialized IT services for accounting firms, our team at NeverBlue IT can help your firm implement and optimize all of the best technology tools to streamline your operations and support your accountants. 

As the trusted managed IT service provider of businesses in Southeast Michigan and Central Florida, we offer the following to our clients:

• Proactive technology support
• Onsite IT support
• Fixed monthly price
• And much more.

Is your firm ready to achieve more with the right IT partner?
Schedule your free consultation today.

Source:

1: U.S. Bureau of Labor Statistics | Accountants and Auditors: Occupational Outlook Handbook