The profession of Accounting has always been thought of as boring and monotonous. There even have been predictions of accountants becoming extinct or unnecessary because of technology. However, the advancement of technology is not a threat for the Accounting sector but an opportunity for the evolution of accounting.
With the help of technology and the shift in the needs of businesses, here are the top 5 future trends of accounting:
- Accounting Processes Automation
Accounting is heavily involved in data encoding and processing. With new technology, data encoding and processing will now be automated, minimizing human error and improving efficiencies in companies. The need for in-house accountants would rise to ensure data accuracy and streamlined processes.
- Cloud-based accounting and Accounting Software
From piles of ledgers to accounting software, Accounting has also entered the era of the “Cloud”. Data can now be stored and retrieved easily from the “cloud” through the internet or other networks via a cloud application service provider. It is cost-efficient and real-time! Moreover, the different kinds of accounting software offered in the market have been improving, offering better products and services catering to all kinds of businesses.
- Data Analytics and Advisory Services
Because of automation, information has become available at a faster rate. Accountants would not have to spend most of their time encoding and processing this information. Instead, they can use the time to analyze the data they got from the automation. A new skill set is being required from Accountants since they would now be performing advisory roles. As advisors, they can provide valuable insights that can improve the processes and manage risks better.
- BlockChain
The use of blockchain in businesses has immensely helped the accounting sector safely and accurately store data. It has lowered the cost of maintaining multiple records and ledgers and increased traceability of transactions by giving the business better sight of its resources and obligations.
- Big Data
The ease of automation and security from blockchain have ensured the continuous availability of accurate data. The next role of accountants would now be the analysis and identification of big data and from these, formulate actionable insights that would help in decision-making.
Gone are the days when accounting is merely bookkeeping. Accountants are now management advisors, data analysts, data scientists, accounting software developers, and many more. The Accounting profession is not dying, it is continuously evolving and expanding to other sectors of the business world.
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