In our modern world, almost every industry has benefited from the introduction of technology. However, many accountants have a, perhaps healthy, dose of skepticism when it comes to welcoming new technology into their workplaces.
In terms of the technology and software that’s available in the accounting sphere, the aim is to assist accountants with their role by lessening the time and resources it takes to perform their duties. Don’t worry, there is very little chance that this technology will be taking over accountants’ duties.
By embracing technology, accountants can not only expedite their output but control its introduction into their practice. This article will introduce you to the benefits of using the newest technology, and how it can improve your business.
Why Embracing the Newest Technology Benefits Accountants…
Before we get into the specific technology you can take advantage of at your firm, let’s take a look at why embracing technology can be a huge benefit to accountants.
Ease of Access - When common bookkeeping, reports, and forecasts are digitized and stored in the Cloud, it not only provides ease of access to these important files and documents for both parties but allows business owners and accountants to communicate with ease. If ever you require a certain document from your client, they can simply upload it to your shared area.
Increased Data Protection - Even if accountants are not embracing the newest technology available to them, it’s probable that some or all of their data and reporting is digitized. By embracing new software programs available to accountants, you ensure your firm’s and your client's data is being stored securely on remote servers, protecting both parties.
Better Planning - When technology takes over repetitive and time-consuming tasks, accountants will have far more time to dedicate to client care, important one-off tasks, and bespoke offerings. With the knowledge that the software can handle daily duties, accountants have a much clearer idea of their day-to-day and can plan accordingly.
Collaborative Possibilities - As so many accounting firms are embracing a move toward technology, embracing it in your own firm gives you the chance to partner with other forward-thinking accountants. There are many benefits of collaborative accounting, especially in terms of servicing clients and attracting larger clients.
More Services, More Profit - When software takes care of your duties for you, or assists with your work, you can offer your clients new services and a faster turn-around time. This not only solidifies partnerships between you and your existing clients but can be a game-changer in your marketing, helping your firm secure new clients, too.
Keep Up With Competition - Your competition may well be embracing new technology to reap the above benefits. It’s much easier to get to grips with new technology and then expand your knowledge when this software is updated than jump on the bandwagon after your competition, when it may be too late.
Why Do Forward Thinking Accountants Embrace New Technology?
Aside from the benefits listed above, the main reason forward-thinking accountants embrace new technology is that it stops firms from falling behind.
In 2022, the market size of accounting services is about $120.6 billion and is expected to grow by 0.9% before 2023. This growth is driven by market demand, and it is this same market demand that drives accountants to adopt new trends. For example, during the pandemic just under 70% of accounting firms began to offer pandemic-related services. The industry is built on embracing change.
Consistently offering clients what they want and need, even if those wants and needs change, is key to an accounting firm’s success. With 82% of small businesses relying on Cloud accounting and 88% of business owners stating that a tech-savvy accountant is important, embracing new technology is perhaps the most beneficial investment in your firm’s growth and continued success. If you’re looking out for the future of your firm and your employees, embracing new technology is an easy decision.
What Kinds of New Technology Are Available to Accountants?
Now we know why new accountants embrace new technology, and why it’s essential to achieving your goals, let’s take a look at what new technology is available to you.
- Cloud Accounting
The Cloud is an advancement that a majority of accountants are already familiar with. With Cloud accounting software, data can be stored online rather than on a hard drive. As we mentioned above, this makes information sharing and collaborative work so much easier. As a first step in embracing accounting technology, the Cloud is simple to use and requires almost no support after set-up. Plus, with the Cloud services industry growing by 380% between 2010 and 2020, you can rest assured that it’s not going anywhere, anytime soon.
- Big Data
Big data is almost exactly what it sounds like. This term is used to refer to datasets that are often too large and unruly to be analyzed using simple tools such as spreadsheets. While big data is not a new technology in itself, and the software that combs and collates big data is what you’ll need to embrace it, it can bring a variety of benefits. With the help of big data, you can forecast trends across industries and provide business leaders with state-of-the-art data analysis and visualization. Big clients and big data often go hand in hand, so if you’ve got your eye on the prize, big data is a must.
3. AI
Using artificial intelligence in accounting is one step up from the automated processes that are often used in Cloud accounting. In your firm, artificial intelligence can complete a variety of time-consuming tasks, and completely cut out the risk of human error. Most commonly, AI in accounting is used to find and upload files, conduct audits, comb large datasets, and automate payroll tasks. But this is just the tip of the iceberg when it comes to what AI can offer your firm and the industry as a whole.
- Robotic Process Automation
Also known as RPA, robotic process automation is a little different to AI, but still carries out the same tasks through automated actions and responses. RPA learns from your actions as an accountant, and then streamlines the process of rudimentary tasks that require data retrieval and file uploads. Like many of the other technologies on this list, RPA reduces an accountant’s workload, lets you offer your customers services with minimal delivery times, removes human error, ensures compliance with regulations, and protects your data. RPA can also extract relevant information from client correspondence and use this for general bookkeeping, and to generate audits and forecasts. RPA is the perfect choice of new technology for smaller accounting firms that want to compete with major institutions.
- The Blockchain
This emerging technology is still quite rare and has not yet been fully embraced across the accounting industry. So, getting to grips with the blockchain now can really set your firm apart. Essentially, the blockchain is an encrypted system that tracks transactions made between multiple parties. For accountants, this means transactions can be automatically verified as they happen, cutting out the need for independent audits. This saves auditors and accountants a huge amount of time and effort combing through receipts and saves your firm and clients money by cutting out the middle-man.
What Are The Roadblocks Accountants Should Be Aware Of?
While embracing new technology is a step in the right direction for your firm and your employees, it won’t come without challenges. Being aware of the roadblocks you may come up against will help you deal with them quickly and efficiently.
Lack of Support - New technology and software are never perfect, and a lack of support can leave you floundering and waiting for an IT service to assist you. It’s always worth selecting technology for your employees to use that has constant, external support included in the package. Although this ups initial costs, it can maximize ROI by reducing downtime. You can also roll out new technology in your firm bit by bit, to make sure you and your employees learn how to deal with smaller issues.
Lack of Tech-Literacy - This can apply to both your employees and your clients. In particular, adopting some new technology often relies on your clients knowing how to use that technology. 72% of accountants surveyed by Accountancy Age believed that clients adopting technology would be the biggest hurdle in complete digitization. On an individual basis, it can be beneficial to match the software you’ll use to a client’s current capabilities, and once again, roll out new technology slowly within your firm so employees can get to grips with it.
Lack of Control - Finally, one of the biggest fears accountants hold is that AI and RPA will slowly reduce the need for human involvement, eating away their jobs in the process. It’s true that, when it comes to new technology in the accounting industry, the ball is already rolling and doesn’t seem like it’s going to stop any time soon. This leaves accountants in a fretful position, where they must accept and embrace what they believe is ultimately going to make them redundant. However, embracing new technology will give you a degree of power over how it is implemented in your firm and the industry as a whole. For now, the benefits of embracing technology, especially when it comes to individual career paths, far outweigh the distant possibility of a reduction in the need for human-led accounting.
Closing Thoughts
Forward-thinking accountants embrace new technology not only because it can save time, money, and energy, motivating employees and providing the opportunity to attract larger and more profitable clients, but because it is quickly becoming essential to ensure the continued growth of their firms.
Cloud accounting is one of the most common new technologies being implemented and is a great first step for accountants looking to introduce new tech to their role. Alternatively, embracing AI and RPA can benefit both your employees and your clients, and set your firm apart from its competition. Finally, blockchain and big data are new technologies that can completely revolutionize the way your firm operates.
Sources
https://blog.pleo.io/en/accounting-technology
https://www.avn.co.uk/technology-wont-ruin-your-practice-your-decisions-will/
https://www.accountingweb.co.uk/community/industry-insights/accountants-its-time-to-embrace-change
https://financesonline.com/accounting-software-statistics/
https://www.accountsandlegal.co.uk/accounting-advice/technology-is-the-future-for-accountants
https://www.internationalaccountingbulletin.com/news/high-demand-for-tech-savvy-accountants/
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