Recent Technologies that have Changed the Accounting Industry
17

Aug 2020

The past few decades have seen considerable advancement in the technologies in all walks of life. Be its manufacturing industry, communication industry, retail industry, automotive industry, etc. the development of technology has impacted every sector. The accounting industry, though, has been a little slow in catching up with the latest technological know-how but is slowly even the accounting industry is not unaffected by the changes in technology.

There are many benefits of moving forward and using new technologies as they provide the accountant with a number of benefits such as:

  • Less Number of Errors
  • Prepared for every Scenario
  • Detailed and Quick reports
  • Cost and Time Effective
  • Easy to use by even a Novice

These benefits have attracted more and number of companies to use the latest technologies not only to conduct their business but also to in their accounting process.

Technological Advancements in Accounting

Some of the recent advancements in technology which have proved themselves as a game-changer and have changed the face of accounting are:

1.The use of various Accounting Software

There has been an increase in the use of accounting software by different businesses. This accounting software is easy to use, and therefore can be used even by a person not knowing the technicalities of the accounting industry. This software will allow businesses to stay updated and improve accuracy while being cost-effective and efficient.

2.Digitalization

The digitalization of the complete accounting operations, as well as the various transaction methods, has helped the accounting industry in many ways. In the past, the accountants had to make a note of every transaction, and if something significant were missed, it would lead to the preparation of improper accounts of the company.

Due to the digitalization of the transactions, all the records will be present, and the chances of missing out on any vital information will be very less. This will help to increase the accuracy of the complete accounting procedure.

3.Use of Mobile Accounting

There is an increase in the use of mobiles by everyone. Seeing this, the accountants have now started using mobile applications to conduct accounting services. With the use of mobiles, the accountants can stay mobile and then perform the respective accounting procedures. All they require is a good internet connection. It will also allow the accountants to keep connected with their clients and provide them solutions to their problems in real-time.

4.The use of a Cloud-based System

The transition of moving to a cloud-based system for accounting has been a big decision and has been exceptionally advantageous and helpful for every accountant. Being on the Cloud, an accountant can access the data from anywhere and thus can help a client to provide the financial data of a company in real-time and then analyze it in real-time.

Keeping the data on a Cloud-based system will also help in sharing the data with the various departments of the company and will allow for collaborations and better insights from the other departments. It will also save much time while transferring the financial data from one department to another.

5.Development of Artificial Intelligence

The development of Artificial Intelligence is considered as one of the most considerable growth in the accounting industry after the implementation of the Double Entry Bookkeeping System. Artificial Intelligence will help reduce human errors by automating the complete accounting process. An A.I. will be able to compute the required data quickly and will provide the results accordingly.

It is usually thought that the use of accounting software and the increasing Artificial Intelligence will slowly take over the jobs of the accountants. This part is not entirely right. Though some of the posts will be affected due to the automation, accountants will still be required during than accounting process as some of the decisions require an emotional side which the Artificial Intelligence cannot provide.

6.Developments in the Blockchain Technology

Blockchain is a simple process that will simplify the process of the transaction. It will remove the middle man from the complete operation and will provide better security to both parties. Though it will take a certain amount of time to apply this technology worldwide thoroughly, this technology will revolutionize the entire accounting industry.

These are some of the technologies that have affected the accounting industry the most. In the future, there may be the implementation of more new and updated technology in the field of accounting. Thus all the companies must be ready to adapt to new technologies and remove the techniques which have become obsolete.

If you have plans to conduct business in the United Arab Emirates, then you need to take the assistance of a firm which understands the importance of technology and possesses the technological know-how. One such firm which will take care of all your accounting and bookkeeping requirements is JAXA Chartered Accountants. This firm provides its services in both the Mainland and the numerous Free Zones that the country possesses. For details on the services provided by JAXA, Contact Us. We will be happy to help.