With the accounting software industry expected to grow at a rate of 8.6% to $11.8 billion by 2026, accountants must be prepared to modify how they approach their responsibilities. Outsourced accounting firms are aggressively searching for ways to leverage these new technologies in order to provide their clients with a streamlined process that maximizes their profits and simplifies compliance. Additionally, these services are switching their roles as bookkeepers to strategic advisors.
This article discusses the future of accounting and how accounting advisory services, accountants need to adapt to a changing industry to retain their demand. It also discusses how bookkeeping will eventually become obsolete based on these technological advancements and how bookkeepers can sharpen their skills to stay competitive over the next decade. Continue reading to learn more about the future of accounting.
Accountants will not be obsolete
The fear of AI is rampant in most service industries. The case can be made that bookkeeping is a service industry and it is possible that AI and technology will render bookkeepers’ jobs obsolete. That’s why the future of accounting can strike fear into bookkeepers and accountants alike.
However, these roles are different and will not be affected in the same way by technological advancement. Automation will render most bookkeeping tasks useless. However, the last thing companies should look to do is develop an overdependence on automation, which is why accounting responsibilities require a heightened specialization level on. The prognosis seems to be this: bookkeepers, not accountants, will likely become obsolete.
The cloud, automation, and AI
Data centralization is one of the most important considerations for the future of accounting and cloud technology will be one of the chief facilitators of that transformation. Cloud technology reduces overhead for hardware and improves communication and collaboration. Standardizing your data in a data sphere makes it easier to capture, access, share and analyze. As data silos dismantle and data quality improves, it will be easier to automate more and more bookkeeping tasks.
The cloud and AI will essentially work in tandem, with a centralized location to accumulate high-quality data necessary for AI to work its magic. AI reduces time-consuming manual labor and human error, but AI won’t have data to analyze without cloud computing. The combination of both will let teams focus exclusively on creative strategy and collaboration, which AI can’t yet achieve.
In the future, AI will do all of the grunt work typically associated with bookkeeping. By rendering raw data into more manageable formats and connecting traditionally disconnected data sources, AI can synchronize with human ingenuity, streamlining the accounting process by refining what humans already manually complete.
Instead of accountants focusing on compiling and computing the data into bookkeeping tasks, they can automate the mundane tasks and devote themselves entirely to their creativity and strategy. In the integrated environment of the future, accountants will be able to collaborate with peers from other business departments to leverage financial data across channels and build more resilient and agile supply chains. These supply chains will promote growth while ensuring cohesiveness.
Blockchain
Blockchain technology has already earned a reputation for its potential in supply chain optimization. It also has a clear place in accounting. Accounting professionals who understand ledger technologies will produce records and have an even more secure and safe database than those using cloud technology.
Virtual reality
Virtual reality carries the potential for many more applications besides video games, allowing companies to implement strategic initiative responsibilities required level on. In fact, according to Robert Half, 71% of US managers are already using some kind of virtual reality or planning to integrate the virtual reality within three to five years.
The benefits of future accounting measures
Cost savings
The future of accounting will save companies both time and money, not only on expediting accounting processes such as statements, reports, invoices, and budgets but eliminating the need to hire bookkeepers altogether. The future of accounting will likely feature automatic record checks and eliminate errors, resulting in increased efficiency and profit margins. Companies will understand their finances easier and at a lower cost than ever.
Especially when an enterprise is expanding, outsourcing accounting services could save on costs. For instance, if a company is expanding to a new region in the United States or abroad, future accounting measures will have your business stay up to date with all the relevant information. For instance, if you wish to expand to China, you can look for accounting services in China, that will keep you informed of all statements, reports, filings, and invoices you need. Hence, procuring accounting services will be quite beneficial for you.
Hardened data security
In the age of cybersecurity, data safety must be a priority, and the future of accounting responds to this demand. New accounting software protected by extra security layers such as authorized access, two-factor authentication, and regular backups will provide additional security protocols for businesses that can’t afford to have their data compromised. Additionally, technologies such as the blockchain will respond to this need in greater detail.
E-invoicing
E-invoicing can feed data directly into a business account without the possibility of errors. This type of invoicing makes businesses more productive and efficient because individuals no longer will need to create individual invoices. It will also help organizations process business information faster and improve their relationship with suppliers.
This software organizes accounting books for organizations and helps save time and effort by keeping financial records in order. With accounting software capable of producing invoices, organizations can save templates, customer details, and product information in one location.
The required skills of future accountants
The future accountant will have to be more technologically savvy to compete in a rapidly changing job environment. As these intelligent technologies and tools situate themselves in the industry, accountants will have to become pretty proficient in properly leveraging the cloud by offering more in-depth financial analyses rather than simple compliance and bookkeeping services.
Accountants in the future must familiarize themselves with the blockchain and other forms of technologies, transferring ledgers, contracts, and records. With automation due to take over the accounting industry, the future accountant will need to develop the necessary skills to perform administrative, managerial, and analytical tasks that technology cannot.
Accountants in the future will also have to take the advisory role and responsibility with clients, meaning they will require being very skilled at perfectly analyzing big data to find trends and patterns. This requires skills in data mining and other data science techniques. Accountants must prepare themselves using data visualization strategies and programs so they can translate the data into insights for clients and company leaders. Accountants with these skills will be in higher demand than they currently are.
Conclusion- The future of accounting
The future of accounting is bright, and accountants need to adapt to this changing landscape if they don’t want to be passed up by technological solutions. However, for bookkeepers, these professionals will have to figure out ways to bring value to their companies and become more skillful when trying to provide data analysis. They will have to exist within the evolving role of accountants and give a fuller understanding of accounting roles and responsibilities, or technological solutions will pass them up.
