Technology of the future for accounting

 

Accounting is the de facto the language of business. And as every language has gone through several changes throughout the years, so has accounting. Accounting continues to evolve with the changing technologies. With the increase in our knowledge of technology, there has been seen an increase in the accountant’s ability to efficiently and effectively interpret data. From the invention of a calculator to invention of computers and accounting software, the accounting practices have changed completely. It is safe to say that technology plays a major role in the evolution of accounting industry. So if we look ahead, what is the technology of the future for the accounting? 

Let’s talk about the three emerging technologies that will revolutionize some traditional accounting practices. 

 

  1. Artificial Intelligence (AI) and Machine Learning (ML)

A few years ago terms like AI and ML seemed far too futuristic. But today, the future of accounting lies in the hands of artificial intelligence and a current application of it, known as machine learning. AI and ML will allow organizations to transform data into business insights. Now, many may think that because AI helps in automation, it may replace the role of accountant completely. Whereas, AI will help automation become more intuitive and effective but the role of accountant will become more important than ever. Accountants will still need their strong accounting skills and build new skills to work alongside AI systems. 

  1. Cloud Technology 

The cloud is rapidly replacing the need for physical storage of key information. Contrary to the popular belief of the cloud being insecure, storing information on the cloud is more secure than traditional methods. Because of something were to happen, for instance, loss of equipment, property destruction or power outage, the financial information will still be secure and available for review. Cloud technology will benefit both the client and accountant because it is a secure platform to share information in the most time and cost-effective manner. 

  1. Blockchain

Blockchain does not only make cryptocurrencies possible but also bookkeeping significantly easier. It is a secure electronic ledger that tracks and encrypts transactions. Blockchain is the most effective way to cut down the risk of fraud and other inaccuracies. This is because the transaction, once entered, can not be changed or modified. Blockchain also offers other advantages like getting real time access to valuable financial data, and you can also set up rules via smart contracts for how the money from transactions can be spent. 

 

RSM Insights 

Technology brings with it new levels of interconnectivity. Keeping up with the changing technological trends in accounting is only a smart thing to do. The above-mentioned emerging technologies will have a profound impact on accounting. It is because these practices will enhance the ability of an accountant to seamlessly collect information that can be transformed into useful business insights. Companies that wish to head down a path of becoming an industry leader will need to build an accounting infrastructure that is able to benefit from the promise of these technologies.   

Feel free to consult RSM UAE to discuss your financial and budgeting concerns.  RSM is one of the world's leading audit, tax and advisory service network, recognized for innovative solutions across the globe. RSM professionals can help your company undertake granular analysis required for a comprehensive accounting systems overhaul.