With any industry you look at, consistent and unparalleled innovation has had a massive impact on business as well as our day-to-day lives. Sure, predicting changes in the technological ecosystem of the accounting industry is undoubtedly a daunting task. There are, however, some major trends that have transpired during the course of 2018 and right into 2019 that every business leader should know.
Plenty of accountants have effectively acclimatized themselves to utilize the best digital accounting tools and software that successfully enhance every minor and major accounting process in a diligent attempt to go paperless. Technology continues to dominate the latest trends in accounting which every business leader should know.
The Role of Machine Learning and Artificial Intelligence
According to Jean Baptiste Su, Vice President of Atherton Research, the approach to integrate machine learning into the accounting stratosphere has steadily become a constant. It is safe to say that artificial intelligence is gradually beginning to revolutionize the entire accounting sector. Moreover, by 2020, a majority of accounting functionalities which are more or less labor-intensive (such as pay roll management, preparing tax documents, auditing, etc.) will be fully automated.
Machine learning has transformed into a trend that will dominate the accounting ecosystem within software, smartphone, and tablet application. Facets of accounting that are integrated with machine learning as of now include data extractions, analytics, predictive insights, and chatbots. It is safe to say this is one major trend big and small business leaders alike should watch closely.
Using the Mighty Force of Cloud Computing
By the year 2026, the total value of accounting software and applications throughout the world will climb to a massive $11.8 billion, says Hubdoc co-founder Jamie Shulman, quoting statistical analysis posted by Accounting Today in 2018. The accounting industry has already gone digital. However, with the addition and integration of SaaS (Software as a Service) and cloud computing, accounting will become more virtualized and financial data accessibility will maximize in terms of efficacy and ease.
The accounting ecosystem for software, applications, and other digital platforms has become more streamlined. It is proving to be strikingly viable and effective for back-office functionalities and accounting process within a variety of industries, including SMEs and large businesses.
Blockchain and Accounting
Just as binge watching your favorite TV shows on Netflix isn’t the sole purpose of online streaming, the same can be said about cryptocurrencies. According to Nick Chandi, CEO of PayPie, blockchain isn’t just for digital currencies. Blockchain as well as smart contracts have been a major topic of conversation in relation to accounting and finance.
Think about it, blockchain is a method of delivery that enables millions of people from thousands of sources to acquire the same information in real-time. For example, if an organization’s accounting profile is integrated into blockchain, the information pertaining to multiple accounting facets of that particular company will be available to all its lenders and investors. They will all be able to access the same information whenever they want it.
Similarly, if anything else is added into the profile, people with the appropriate clearance will be able to quickly view the changes as soon as they are made, saving time and resources.
Staying ahead of the curve is what every successful business leader does. We are living in a world where keeping tabs on every dollar is increasingly important. So as far as the vital accounting function is concerned, staying on top of the latest accounting trends remains crucial.
Fatima Mansoor is a writer at Aepiphanni, a Business Consultancy that provides Management Consulting, Managed, and Implementation Services to business leaders and entrepreneurs seeking to improve or expand operations. She specializes in business & entrepreneurship, digital marketing, and health & fitness. Her focus is on creating compelling web content for small and medium businesses form diverse industries. She mostly writes for entrepreneurs and marketing agencies across the US, Australia and UK.
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