How has Technology Impacted the Finance and Accounting Industry?

How has Technology Impacted the Finance and Accounting Industry?

There has been a tremendous technological revolution in the past few years that’s impacted various aspects of business operations. Accounting has also been affected by this change and has experienced a dynamic shift in terms of productivity. 

Stacks of papers have now been replaced by apps and analytics, helping accountants make the giant leap from task-oriented projects, to becoming modern-day business advisers. 

Access to smart software programmes that can perform tedious tasks in a short amount of time, along with automated tools has made financial accounting operations efficient, organised and more productive. Read on to learn how just how much this industry has been impacted by technology.

While new developments have been immense, certain new advents have restructured accounting processes. Cloud-based systems are a popular technology in accounting that are used by various firms to streamline information and facilitate easy access. This way, accountants can access important data from anywhere, unrestricted by time and space through the web. This also facilitates the analysis of data in real-time as storing large files is now possible through cloud computing which offers unlimited storage space.

Accounting apps and analytics are new technologies that have surfaced in the past few years. These apps allow accountants to conduct operations such as accessing financial data and tools on mobile devices. Some of the most popular ones used by small business owners are QuickBooks, Xero, FreshBooks and more. These tools remove human error and provide businesses with timely financial information and cash flows, which can be produced by simply filling in a form or at the click of a button, streamlining operations and reducing administration costs.

The impact of technology on accounting has become so crucial that it has diversified the role of an accountant. Considering that major time-consuming tasks can be done at the click of a button, accountants can now focus on analysing data to make better business decisions and strategic plans for their clients. Industry analysis is now a smooth process as everyone is able to view and interpret data remotely. Enhancements in accounting software and application have made the work of accountants specialised.

Consumer-friendly applications also benefit non-accounting professionals who can now understand financial dealings and structures. One of the main aspects of accounting - client and accountant interaction - has also changed as on-site consultations are no longer required and both parties can access real-time data simultaneously online. This makes conducting business operations easier, and the client gets to enjoy better services, making it a win-win situation for all. 

Social media is among the most prevalent technologies in accounting and is reshaping many functions. As a global platform of engagement, it has caught the eye of big names in industry such as Gary Boomer, CEO of Boomer Consulting Inc. who is using social media to connect with current and potential clients. Firms are constantly seeking new ways to market themselves and adding social media to their business development strategy has helped many target their goals.

The role of technology in accounting has transformed the sector with newer and advanced software, and its ability to ensure accuracy and reduce errors, which helps businesses avoid tax penalties and other issues. Furthermore, it’s now much easier to organise audits in a highly efficient manner. 

Accountants must embrace all new changes that technology brings to ensure that their industry knowledge remains relevant. Gaining new knowledge is achievable through professional courses in accounting and finance provided by London School of Business and Finance Singapore (LSBF). Become an asset to global employers by signing up today!

 Reference article: 5 Ways Technology is Transforming Accounting published by UWorld

This article was written by Nandita Kaushal and edited by Anisa C.