What comes to your mind when we say Financial Accounting?
Stack of papers, a person hitting the calculator, and lots of manual paperwork. If this is what you have visualized, hold on!
Lets see how technology is redefining Accounting across the globe.
Accounting is no longer the laborious number-crunching job it used to be. It has undergone a massive transition owing to technological advancements, and accountants can now experience a faster, smarter, and more efficient workflow.
Technology continues to reign supreme in the financial landscape, as 86% of accountants agree that technology will be the growth factor behind any firm's progress.
According to the Accountant Technology Survey, the following findings are crucial for accountants:
Enhanced Client Interactions
- The survey found that technology is transforming accountants' interactions with their clients.
- 82% of accountants believe that technology creates more meaningful client interactions, thereby improving the quality of service they can provide.
Embracing Automation
- With technology taking over mundane tasks, accounting professionals are embracing automation and artificial intelligence (AI).
- As per the survey, 48% of firms plan to invest in these tools over the next 12 months. This move will allow accountants to focus on more value-added tasks.
Solving Hiring Challenges
- The accounting industry has been facing a significant shortage of young professionals, causing concern among accounting firms.
- However, the survey found that 85% of accountants believe technology could help turn this around. By automating repetitive tasks, technology will free up time for accountants to work on more engaging projects.
4 Factors How Technology Will Change the Accounting World
The accounting world is rapidly changing, thanks to the advent of Artificial Intelligence (AI) technology.
With AI's help, accountants can devote their time and resources to more creative and valuable tasks rather than being bogged down by mundane, repetitive tasks.
In this blog post, we will explore four ways that AI is revolutionizing the accounting industry.
1. Accounting and Bookkeeping
According to Accenture, just 34% of finance tasks utilize automation, yet about 60-80% of historical accounting activity can reach greater efficiency through automation.
With AI, accountants can automate tasks such as auditing, payroll, uploading files, accounts payable and receivable, inventory control, and other accounting functions. Technologically advanced accounting and AI algorithms would enhance 40% of work in these areas, liberating accountants to work on more strategic and creative tasks.
2. Error Free Accounting
AI is already exceptional at continuously gathering, sorting, and visualizing data to discover new growth gateways of financial and business efficiency. Large and small businesses would use AI to reduce financial fraud and minimize human errors or mismatches such as duplicate invoices.
It can identify correlations or links between payments and known risks and accurately assign costs so businesses do not overpay for items.
As laws become more stressful, every action becomes more critical for compliance. Firms can employ their human resources in ways that strategically move the company forward with AI in the background.
3. Actionable Financial Reporting
As AI technology continues to improve, the analytic capabilities provided by machine intelligence will quickly align with what analysts presently do.
It would improve the operations and workflow of financial reporting, optimizing data systems and driving actionable insights that executives can use to make smarter business decisions.
By factoring in internal and external data, AI can provide valuable insights that help businesses thrive in various market scenarios.
4. Financial Intelligence
Financial Intelligence describes how it goes beyond repetitive document analysis and processing tasks with executions that beat the clock. It would enable unattended software to help humans to communicate efficiently with tedious chunks of information.
In addition, technology can now open up new conversations to eliminate problems in the financial world. Such capabilities would become efficient through the Internet of Things (IoT), interconnected devices that track and transmit information in an AI/ML environment.
It may help accountants to work more efficiently and reduce the chances of errors in the data processing.
Final Thoughts
In conclusion, AI and other advanced technology are changing the game for the accounting industry. By automating tasks and providing valuable insights, accountants can focus on creative and strategic tasks that add tangible value to businesses.
On the forefront, ViTWO.ai technology is revolutionizing the accounting industry and helping businesses to stay ahead of the growth curve.
With the benefit of ViTWO.ai, accountants can provide more personalized, efficient, and valuable services while inspiring a new generation of accounting professionals.
The future of accounting is bright with ViTWO.ai at the helm.