.Finance is considered as the backbone of any business, whether small, medium, or large. Managing it with high-end security and accuracy has always been significant for successful business organizations. Especially during these challenging pandemic times most of the companies are creating a need to stay updated. With the latest trends in terms of their accounting technology to cope up with the challenges relating to remote working. Simultaneously maintaining efficiency, security, and effective collaboration throughout the workflow. For that reason, many companies in recent times have come to terms with the need to replace their legacy accounting system with the new age, best accounting software to stay progressive and competitive.
This article will guide you through the top 10 accounting software trends that every modern organization should consider in 2021 and beyond while making innovative developments.
#1 Artificial Intelligence (AI)
Artificial Intelligence is a technology that allows you to stay ahead of time. It helps in automating time-consuming, redundant, and repetitive tasks to a great extent. Not only that, AI-based accounting software can help you extract valuable insights from large amounts of data quickly. Saving time and driving more intelligent and strategic decisions impacting the profitability of the overall organization. Integrating AI to accounting systems has empowered accountants to be highly accurate and efficient. Allowing them to automate their monotonous tasks and focus more on strategic jobs. AI is the future of accounting and should be consider integrating to the accounting system. For improve productivity and decision-making within the organization.
#2 Cloud Computing
When it comes to financials, the ease in accessibility and security of the data is essential. After the Covid-19 pandemic outbreak, most companies had to mandate their employees to work from home. This situation made it difficult for the organizations that use obsolete accounting systems and store their financial data in stand-alone computers. The need for financial data management and security grew to a great extent, and this is where cloud-made accounting systems play a distinct role. The cloud-based accounting software can store the entire data in a centralized location that is easily accessible from any device and platform. So, even if your team members are working from any remote location, they can easily collaborate and ensure that the financial operations of your business are being carried out seamlessly with high-end security.
Blockchain, also termed as a distributed ledger system. It is used to record and store transactions in a highly secure manner. Based on which crucial financial decisions are made. Besides that, it enables managing internal and external contracts. Verifying the identities and credentials of the users, protecting and transferring the ownership of assets, etc. That require a high level of intricacy and precision. Integrating blockchain to the accounting systems can help businesses overcome the challenges of recording transactions. Into a decentralized ledger with interlocked arrangement, eliminating the chances of data getting tampered with. It also enables accounting auditors to validate the huge amount of data in less time. Saving costs and improving productivity considerably.
#4 Natural Language Processing (NLP)
Natural Language Processing (NLP) can parse textual data quicker and more accurately than humans do. This is why many software development companies have integrated NLP into accounting software, empowering companies to work more intelligently. Natural language processing enabled accounting software can convert unstructured data into a more usable form; and add context to it to make it easily searchable and actionable. Efficiency, consistency, speed, and accuracy are some of the benefits of leveraging NLP-based accounting software. It can automate the task of analyzing huge volumes of unstructured data on a real-time basis.
#5 Internet of Things (IoT)
IoT has already revolutionized modern industries these days, and accounting is not an exception. IoT (Internet of Things) are connected devices that can communicate with each other, exchange and collect data using the internet without the interference of human efforts or interactions. Accounting software making optimum use of IoT can extract the data from multiple sources on a real-time basis. Based on this intelligent data based on real-time facts, it becomes easy to monitor and streamline accounting activities and audits without any stress. Additionally, it becomes feasible to generate comprehensive reports, deliver accurate financial advice, and make informed decisions that benefit the business in the long run.
#6 Robotic Process Automation (RPA)
Accounting departments need to analyze and process several documents, which can become quite time-consuming and prone to errors. Robotic process automation enabled accounting software to handle repetitive tasks, free the accounting teams from mundane tasks and help them focus on more strategic and advisory jobs. Moreover, robotic process automation in accounting systems has brought in disruptive changes in current auditing practices that allow auditors to deliver high performance. RPA implementation in accounting software can help you automatically validate and send invoices to the customers, reduce manual review processes, increase data accuracy, speed up completing sub-ledgers in close processes, and finally eliminate human errors.
#7 Business Intelligence (BI)
Business Intelligence (BI) is a technology that has successfully equipped businesses with highly accurate data in the form of comprehensive reports. Enabling them to make highly strategic and informed decisions that can drive success. Accounting and finance departments have also made optimum use of this technology. Thus are now able to track financials accurately and optimize their processes efficiently. BI-enabled accounting software helps accounting professionals to be more proactive. And analyze the critical issues before time so that the organization can be protected from huge financial losses. This means, with the help of BI accounting software, businesses can have real-time data at their fingertips. For shaping their decision-making processes exceptionally well. The robust reporting features of BI-powered accounting software have allowed the accounting department to be the most integral part of the organization’s overall strategic planning process.
Significance of Integrating Modern Technology In Accounting Systems
As per a recent report, 90% of accountants believe that there has been a cultural shift driven by digital transformation and increased client demands in the accountancy profession. The approach towards accounting is being reframe, and the focus is more on data accuracy and proactiveness in decision-making. The accounting profession is moving towards an advisory and consultative approach. For that purpose, accountancy firms need to embrace the future technology. That would ultimately allow them to perform excellently and outgrow their limitations.
These accounting trends tell us that digital transformation is highly significant in the accounting sector as it is in any other sector. So, the time is now to adopt the new generation accounting system integrated with one or more of these happening technologies as per your business requirements and reap the benefits of having more accurate analytics and making smarter decisions. Other than these, reduced cost is also one of the major benefits that businesses are experiencing by amalgamating modern technology in their accounting systems, which cannot be ignored in the economic havoc brought in by Covid-19.
Jemimah Rodriguez is senior content writer working with GoodFirms – a reliable platform helping businesses in selecting right Software Companies & Products. For further information, you can get in touch with her on Jemimah@goodfirms.com