5 Common Accounting Technologies Every Accountant Should Know
As technological innovations are integrated into our daily lives, different industries have normalized the use of software and other advanced technologies to standardize and streamline their workforce – the accounting industry being one of them. With the nature of work of finance and accounting professionals, accuracy and timeliness are priorities. Thanks to innovation, accounting technology not only ensures accounting outputs are accurate and efficient but also secures sensitive data and optimizes financial management.
Now, proficiency in accounting technology has become a must for those wishing to become finance and accounting professionals. To start, here are some of the new and most widely used accounting technologies:
New Technology used in Accounting
Cloud Accounting Software
Cloud accounting software has revolutionized the way accountants manage financial data. Popular platforms like QuickBooks Online, Xero, and FreshBooks allow for real-time collaboration, automated data backups, and access from anywhere with an internet connection.
This effectively allows finance and accounting professionals to work and access company data from anywhere at any time – ensuring that all work is done efficiently and reducing the risk of data loss and inaccuracy. By using cloud accounting software, companies are able to ensure the continuity of their operations throughout any situation.
Artificial Intelligence (AI) and Machine Learning
In line with the rise of AI in today’s landscape, the accounting industry has also begun to adopt AI and machine learning – benefiting from the efficiency they bring. AI and machine learning technologies are transforming the accounting landscape by automating repetitive tasks and providing data-driven insights.
Finance and accounting professionals can use AI and machine learning to monitor financial data and activity, quickly accomplish routine tasks, predict future financial trends, and create accurate company projections. This allows companies to mitigate any risk and optimize their operations at the same time.
Blockchain technology is also an innovative development that has been integrated into the accounting industry. Although it gained traction through cryptocurrency, it is now regularly used in accounting due to its ability to create immutable and transparent financial tracking. This makes it nearly impossible to alter or tamper with financial records, reducing the risk of fraud and errors. Finance and accounting professional s can leverage blockchain for verifying transactions, auditing processes, and ensuring compliance.
Data analytics tools such as Microsoft Power BI, Tableau, and Google Data Studio enable accountants to turn complex financial data into easily understandable visualizations. These tools can help accountants identify trends, anomalies, and areas that require attention. Visualization of financial data through charts, graphs, and dashboards allows for better decision-making and more effective communication with clients and stakeholders.
With the increasing reliance on digital platforms and online data storage, cybersecurity has become a needed focus for companies everywhere – and is something finance and accounting professionals must comply with due to the sensitivity of data they handle.
This is why aside from knowledge on different accounting software, accountants must be familiar with cybersecurity technologies such as using encryption, multi-factor authentication, and intrusion detection systems to safeguard financial data. Additionally, knowledge of cybersecurity best practices, regular software updates, and employee training can help prevent data breaches and financial loss.
By becoming proficient and staying up to date on the common accounting technologies and software used in the finance and accounting industry today, aspiring finance and accounting professionals would be able to increase their marketability, excel at their profession and overall remain flexible to the ever-changing landscape of finance.
Want to work with professionals proficient in the latest accounting technologies?
D&V Philippines’ commitment to staying on top of all the new technologies used in accounting allows us to stay proficient and in the know in the finance and accounting industry. Contact us today and we’ll help you find the right solution for your needs.
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