The Future Of Accounting: New Technology Means New Opportunity

Technology continues to evolve throughout all aspects of life, and for accounting it is no different. As technology grows alongside accounting businesses, new methods and practices develop that can create huge new opportunities that never would have existed before. But, these changes are coming so fast now that it can be hard to keep up. Here’s a quick rundown of the newest advances in accounting technology and what it means for the near future.

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Cloud Technology

Accounting has actually been lagging behind other industries when it comes to adopting cloud technology, but starting last year more firms and businesses have adopted it wholeheartedly. Part of that has been the amount of time, money, and mentality to buy into cloud software, but more and more you are seeing greater variety and refinement than ever before. Here is how cloud technology has and will help benefit accounting:

  • Real time information — accountants can access up-to-date information for their clients with no waiting period
  • Time savers — the days of relying on faxes, email responses, mail delivery, phone calls, etc are over
  • Global access — cloud tech makes accounting on-the-go possible, so you can access and process information from anywhere, on any device

As you can see, what cloud technology gives to accountants and their clients most of all is far greater flexibility. Everything can be processed faster, in real-time, from anywhere. Also, with the combination of integrations with other software, everyone saves time and money.

Optical Character Recognition

This technology allows for computers to process all documents at a whole new level. It can scan your documents and upload them into whatever database or software you use which allows all information to be parsed and processed faster than ever. Here’s how it will help accounting firms to provide more benefit to your business:

  • No more data entry — you don’t need someone to manually enter receipts or other information into software
  • No more hand writing — you don’t have to worry about having to read someone’s chicken scratches
  • No more errors — automation means you cut out the errors from writing, reading, and entering documents manually

This is a technology that still has lots of room to grow, as accountants and technology firms further refine best practices for using Optical Character Recognition. For now, customers can scan checks and receipts when filing their taxes, and that’s while this is all still new. Just think of the possibilities when it matures in a couple of years.

Analytics & Data

Data processing and analytics are all the rage now, and not just in accounting. With the advent of powerful new technology, everyone is using it to try and run as much data as they can to find new and better ways of doing business. When it comes to accounting, here is how analytics and data can help:

  • Competitive advantage — better analysis means you can glean new insights and use them to your advantage
  • Spotting problems — processing data allows you to find any inefficiencies and anomalies you might not have ever noticed
  • Analyzing risks — if you are trying to weigh the potential risk, big data and analytics can give you a more complete picture to assist you in making business decisions

The key for any new technology that helps process and display analytics for accounting is that it helps accountants formulate actionable strategies to help their clients. Find parts of the business that are financial anchors that need to be improved, recommend new practices or investments that can help generate more revenue, and so on.

Integration of Everything

Until recently, most of the advances in technology have been in their own eco-systems that did not interact with each other. Now, perhaps the greatest innovation has been the ability to have everything integrate with each other. Let’s look back at the other aspects of technology mentioned above.

Imagine you or your client being able to automatically enter receipts. It is then loaded into your cloud server, where it is processed and parsed through your analytics software. Next, it’s pulled into a report for the accountants to access, digest, and act on. Your accountant then has more time to look through the data and find ways to save your business more money.

Want to learn more about the technologies we use at Schell & Associates, CPA? Contact us, we’d be happy to help you learn more about us.

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