Beyond the Buzz: Why Embrace Innovation in Accounting?
Innovation enables industries to advance their practices and produce better results. It helps us change the way we work and utilize technology. Clearly, innovation is the drive behind every successful advancement of a company.
Accounting trends and technology such as robotic accounting and automation opened the doors for a more streamlined business process and improved team efficiency. Through this innovation, you can minimize the risks and threats your company will likely face. Plus, this allows you to incorporate innovative practices in your team, where everyone is encouraged to introduce new ideas.
Coping with Changes
Innovation transforms the accounting landscape to meet the ever-changing demands of the consumers. Overtime, manual transactions shifted to a higher gear. Because of this, basic tasks such as basic bookkeeping and invoicing are automated, reducing the chances of human error. Greater precision is more possible through this process as well.
These advancements were further nurtured, bringing us cloud accounting technology, blockchain, fintech, and cryptocurrency. Adapting to this new wave of modernization gives you a clearer view of your finances and offers better opportunities for your company’s growth.
Changing of Roles
As a Chief Financial Officer (CFO), you have to be agile in being at par with the trends, and at the same time being circumspect in making sound business decisions. Your responsibilities lie in between managing the company’s financial health and ensuring the continuity of your team’s everyday core operations, which makes it seemingly overwhelming to attend to.
However, through the emerging artificial intelligence (AI) in accounting, you are sure to embrace the technological potentials of AI to its fullest extent and give a guarantee of lifting manual tasks for you and your team. According to a blog, it is anticipated that future developments with AI in accounting will only continue to transform the industry and impact businesses in a variety of ways.
Though many finance executives still aren’t prepared for a shift to AI, 80% of CFOs believe that maximizing AI can get them ahead of the competition. Utilization of this technology allows you to focus more on value-adding management responsibilities such as getting precise business analytics and financial forecasting.
Improved Business Process
Overall, innovation in accounting can help you optimize and refine your business processes. In the F&A industry, countless disruptive innovations establish standardized reporting mechanisms through simplification of core internal transactions. Below are some of the current trends in accounting industry today:
1. Artificial Intelligence (AI) and Machine Learning
Let’s face the fact that AI and machine learning technologies are transforming the accounting profession. These technologies can automate repetitive tasks such as data entry, reconciliations, and basic bookkeeping. AI-powered systems can analyze large volumes of financial data quickly, enabling your accountants to focus on value-adding activities such as financial forecasting and data analysis. By embracing AI, you can increase efficiency and accuracy while reducing the risk of human error.
The emergence of cloud computing has transformed the way accounting is done. With cloud accounting, you and your team can access the organization’s financial data anytime and anywhere. It allows for real-time updates and collaboration, as you and your accountants can log in to their software remotely. Alongside these features, you can also make sure that your numbers are secure in the cloud. Breach and tampering of data are almost impossible because your information is stored through a central online domain.
3. ESG Reporting
Environmental, social, and governance (ESG) reporting is becoming increasingly important for businesses as investors are demanding more information about companies' ESG performance. Your accountants can play a key role in helping businesses prepare ESG reports.
5. Blockchain Technology
Blockchain is changing the way transactions are recorded and verified. Its decentralized nature improves transparency, reduces fraud, and increases the trustworthiness of financial records. This technology also has the potential to revolutionize auditing processes and streamline your financial reporting.
6.Remote Workforce and Outsourcing
The COVID-19 pandemic has accelerated the adoption of remote work and outsourcing in the accounting industry. With the right technology and processes in place, you can work with accountants remotely and collaborate effectively. Outsourcing certain accounting functions to specialized firms can also improve your efficiency and cost-effectiveness.
As accounting trends and technology dominate the F&A industry, we promote innovation in your business through our automated and customized solutions that can simplify your business process.
Interested to know how we can help? Read our paper Fostering Innovation: The VitalSignRx Case Study to learn how we helped our Australian client achieve greater efficiencies through automation.
This post was first published on 25 September 2019 and edited on 14 November 2023 by Angelica Garcia