What is the Future of Financial Accounting?
The future of accounting will be determined by technology. Over the last decade, rarely you’ll see any business function not impacted by technology. Even though financial accounting is a latecomer to the party, it’s playing catch up with a huge leap. Over the last few years, we have witnessed the automation of repetitive and monotonous accounting tasks. We are in the era of modern finance where the definition of an accountant is taking on a new role closer to that of a financial analyst.
These changes are basically the result of the growth in artificial intelligence which is making many industry watchers a simple but confusing question; what is the future of financial accounting? Of course, with the current leap in technology, the accounting profession will experience major changes in the next two decades.
Already most of companies changed the process by using automated accounting processes. Our technology is impacting the future jobs of accounting and the roles of future accounting. As the technology grows, we then focus on the analysis and become a link between the client and the data. These technologies will impact future accounting and the demand for future accountants.
There’s a trend already and it will shape the future of accounting in the following way;
1. Bots Will Take Over Many Future Accounting Job Descriptions
Saying the robots are coming is an understatement, they are here already and will take over future accountants’ roles. Future accountants will even go as far as preparing bank reconciliation accounts. For accountants to remain relevant in the scheme of business, they need to become more sophisticated and advanced in the use of technologies. Future Accounting functions will heavily rely on the use of smart technologies.
The whole idea behind future accounting is the use of bots is for the automation of accounting tasks. It will go a long way to save businesses a lot of time and resources that are often invested. Thus future of accounting will reduce a lot of burdens related to manual accounting.
2. Advanced Financial Insights Through Business Assistant Bots
Today, more businesses are leveraging artificial intelligence and machine learning. This is helping them to reduce costs and serve customers more efficiently. The idea is to be able to provide quick and effective transactional services. Now, with assistant bots, basic tasks such as bank account details, loan inquiries, and balance inquiries can be handled by bots. This will allow humans to focus on complex issues.
These business assistant bots will allow businesses to save billions of dollars. AI and Machine Learning will cease to be just buzzwords but an integral part of the business.
3. Voice and Chat-Based Interaction Over Screen-Based UI
Unlike before, accounting tools will assume an interactional dimension. The future of accounting technology will be more interactive, and financial accounting will not be left behind. User experience will change towards the voice and chat-based interface. It’s all about making technology more human rather than imposing technology on humans. Technology will go a long way to shape how accountants work and how accounting functions are performed.
There’s a transition from screen-based UI to Voice and Chat-Based UI. No, you can access financial data faster and decisions can be made in an instant.
4. Mobile First App Rather Than Web or Desktop.
We are in the era of mobile computing rather than web or desktop applications. Today, 70% of tech-savvy individuals rely on mobile devices rather than their desktops. This is an era of information overload, and businesses are learning to grasp the attention of users by focusing on mobile-first apps. With a mobile-first app, it is narrowed down to its most essential features. Additional features are now thrown into the desktop app.
With this approach, users are inclined to use both the mobile and the desktop app. They are complementing one another rather than competing against each other.
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5. Easy Integration With Other Apps
The future of accounting is all about being able to do all that is needed without logging out of a single app. Today, an accounting app for small businesses is able to perform other roles such as payroll, CRM, and more. There’s an ease that comes with having all your data in one single spot, that’s how the future of financial accounting is!
6. Using Blockchain Technology
A type of technology called blockchain, which is a self-executing, peer-to-peer contract that eliminates the need for third-party verification, will likely have an impact on the demand for accountants in the future. Blockchain is often used for cryptocurrency and the technology has progressed substantially. Blockchain helps you more to take your business and future the long way.
Thus, the future of accounting will definitely boost productivity as you can do more with less. That’s how the future is accounting will be! and it’s already in motion. The fusion of more than a single function in an app.