With the arrival of the pandemic, the world has undergone a drastic change. People are adapting to the new normal in their life. This change is evident in the accounting industry. With the introduction of technologies, an accountant’s life has become much more manageable. Technology is changing the way of approaching accountants towards their clients. It helps them perform their best in doing professional accounting, auditing and advisory services.

The accountants and accounting firms need to accept these trends, be well-versed in them, and understand their various pros and cons.

Advancement of Technology in Accounting

Accounting is always known as a program dealing with mathematical calculations. Technology didn’t have any place in it. But when accounting started moving from numbers to consulting like auditing, tax and advisory services, the need for technology became evident. It helped in serving their clients in a better way.

Now technology is making its place in the accounting industry. It is continuously evolving. Accountants need to understand the latest trends in technology as it will be an inevitable part of the accounting industry. Those who learn these skills are only likely to advance in their career.

Below are some of the latest trends in accounting, which will gain pace shortly.

Increased Presence of Artificial intelligence(AI)

Some accountants fear that AI is going to take up their jobs. They are mistaking AI for automation. However, this is entirely a misconception. Because they provide support systems in accounting, AI can be used to compile and sort the uploaded files and handle different client tasks like scheduling meetings, drafting engagement letters, and billing clients. By managing these tedious tasks, AI helps accountants provide better client service.

Data Analytics

Data analytics has shown a new path in decision-making skills in the accounting industry. Data collected are analysed and interpreted in a systematic way using data analytics. By availing of data analytics, you can identify the operational inefficiencies, develop accurate forecasting models, collect valuable financial insights and track client progress. The demand for data analysts is likely to go up in the coming years. So accountancy aspirants will have an advantage if they master this skill in making their career.

The Power of Cloud computing

Cloud computing allows you to collect data from any device. You need not have to sit in your office to work. You can work from anywhere, and that too for multiple companies. But the most important feature of cloud computing is its safety. It has many safety features that allow accountants to work comfortably from anywhere. Safe collection of data leads to no chance of unauthorized access. Cloud accounting software ensures that data saved here is not lost. The data is stored safely even under unavoidable conditions like power loss, network interruptions, lost or stolen laptops, and other disasters. Cloud computing improves productivity, helps serve clients better, and improves relationships between clients and colleagues.

Big Data

When it comes to making important financial statements, Big Data has always been helpful for accountants. Big data collects large quantities of data collected by the company. Interpreting these data helps to make any financial decisions. It helps in business planning, uncovering malpractices and decision making. It is the fundamental aspect of data analytics. Accountants who have expertise in Big Data are in high demand.

With the introduction of technology, the entire working culture in the accounting field has changed. Before the pandemic, people worked within their office premises. Thus we were missing many rare talents. Many couldn’t work because of the considerable distance or other personal problems. But things changed when the pandemic happened. People forced themselves to stay indoors and look for various possibilities to work. Then technology came to their help. Initially, it was a bit difficult to adjust to the new normal. But later on, everyone realized the importance of technology and its unlimited possibilities.

Technology enables this work from option, making it flexible for accountants and clients. They can communicate with their clients via phone or video, even in remote locations.

This latest trend in accounting has its pros and cons.

Pros

1. It allows access to data from anywhere around the world. Cloud computing software will enable us to share and work on data from anywhere without compromising on safety.
2. Telecommuting software has allowed accountants to communicate with their clients and colleagues based on each other’s time.
3. Technology has increased the productivity of the workforce. People can save the time lost during commuting and work even after business hours.

Cons

1. Newly employed persons will find it challenging to work as they learn new things. They won’t have anyone to guide them properly. Regular employees will also face some difficulties if they have distractions from home. Workaholics may overwork upon finding unlimited access to work which will eventually lead to energy loss and tiredness. All these factors may affect the quality of work.
2. Work from home may hinder the interpersonal skills of the employees. Though video conferencing will open new doors in business, interacting personally with clients and peers has its advantages. It boosts the morale of the individual and helps in developing social skills.
3. People may face network issues if they are working from remote locations. They may not have strong network connections at home, affecting the work quality.

But you must agree that everything has its advantages and disadvantages. Now technology has become the present and future of accountancy. We should be ready to embrace this new change in the accounting industry. If you are looking for an accounting career, it is always better to learn all the latest trends and skills happening in this industry.
Accounting is a field that keeps on evolving. Every day new technologies and trends are coming. You should stay updated if you are expecting career growth in this field. Many short term accounting courses are available which will enhance your skills and help you stand out from the crowd. You can learn these courses and take the first step towards your career growth or change. Learn more