How Technology Will Dynamically Impact The Future of Accounting

Nida Bohunr | May 16 2021

Technology has aggressively changed the world around us and is predicted to impact the future of accounting. Businesses are able to understand their target market with a greater ease and at pennies on the dollar. Giant tech corporations have made the most out of understanding, accumulating and establishing a highly intimate connection with the general public. In broader terms making the world a lot smaller than it used be, simultaneously opening up new horizons for scalability of small businesses.

Even though technology has made it easier for humans to coexist and build a stronger more united world, there are adverse effects of it as well. However, that is only relevant for those that let time slip away and are not able to adapt at the rate that technology brings about innovations and rejuvenates how everyday functions are performed.

There are extensive lists of professions that have been determined to be in the danger zone due to technological advancements and progressions towards independent and self-aware artificially intelligent (AI) systems. A way out does exist, which is to adapt to the changes and be a head of the game by keeping up to date and utilizing advancements to one’s own gain, professionally.

Here are some predictions on the future of accounting.

Cloud Accounting vs Local CPAs

We have discussed about this in earlier blogs as well, where local CPAs were compared with cloud-based computing. The future of accounting is all but cloud. The life of a hard drive is very limited, since all communications and important data is starting to get stored away in a remote system. This will enable the transformation and sharing of data at a much faster and more logistical way.

Small businesses rely heavily on small margins of profits; being a small business owner yourself, you would know this better. Every penny that is not being spent towards any unnecessary expenses can mean enhanced profits. Accountants are an integral part of your business; its well-being and structuration depend on them. However, local accountants can be extremely pricey especially accountants in the Houston, Texas area. The point in having cloud-based accounting systems in place is to reduce the overall expenses on this core business function, improving on the quality of management, and control that you as a small business owner need.

Corporations such as Monily, handle taxes and bookkeeping at extremely affordable rates all the while helping you focus more on your savings and business’s expenses on a reoccurring base at a quarter of the rate at which you would get a single accountant.

See Also: Local CPA VS Cloud Bookkeeping

For accountants this means that they need to move up from providing just financial advisory services to small businesses, to providing cloud-based solutions that would help their client base save up on accounting expenses and cater to more clients through the integration of technology.

Clients are becoming more service oriented

Every service including accounting is utilized or employed for the ease of individuals or businesses as well as the experience they bring about with them. Yesterday’s customers knew less about customer experience and depended more on less saturated markets to fulfill their needs of service consumptions. Today’s clients, however, have a huge variety of options to choose from and logically the better the experience a client gets the greater the chances of them are to stick to where their experience is enhanced.

So is the case within the accounting industry, earlier clients were bound to their accountants or local firms due to the need of being physically present and connected to the people that were managing their books. Now, every single piece of data, no matter how valuable it may be are present on clouds and the internet and can be sent back and forth from any corner of the world. Meaning, that accountant manage their relationships with their client and how they structure the client’s journey through the service delivery life cycle has become imperative.

Strategy based solutions preferred

Just like how Amazon has taken over the world of retail purchasing; by offering an abundance of products under the same roof. Accounting firms need to adapt to the changing market dynamics and the way their clients expect to be served by going above and beyond to deliver every need that they might have under the same roof. Human beings have always-preferred ease rather that discomfort; this brings us to clients expecting more out of what they are paying for.

The optimal use of technology can help accountants perform their tasks at a more cost effective, efficient and more strategized manner. By integrating the systems to optimal working capacity, clients can be helped with understanding their market’s dynamics and financials in a more optimized manner. Which leads to greatly customized and strategic solutions for the betterment, improvement and growth of the small businesses they are working with.

Concluding thoughts

Changes are rapidly happening in all fields around us, the future of accounting is no different through advancements in technology. However, accountants that are quick to adapt to change and connect with their client through the use of smart systems are expected to largely increase their hold of the market.

Author Bio

A highly skilled accounting professional at Monily, having extensive and diverse experience of working in US healthcare and agriculture industry. Nida is a CA finalist with expertise in Bookkeeping, Auditing, Bank Liaison, Tax Preparation, Accounts Payable, Accounts Receivable.