Accounting is on the cusp of undergoing profound change thanks to innovation and technology. While some accountants fear Artificial Intelligence (AI) will take their jobs, those who understand how best to use technology will ultimately supplant those who don’t take full advantage of its potential.

Accounting functions can be time-consuming, but automating them with automation tools can free up precious hours for essential work such as analysis and planning. Furthermore, cloud technology provides increased mobility, security, scalability and cost savings to save companies time and money.

Artificial Intelligence

AI is revolutionizing accounting, relieving professionals from tedious data entry tasks and automating audit processes to free them up for client relations and strategic planning while increasing efficiency and accuracy.

AI enhances financial statements by detecting patterns and anomalies that indicate fraud. Furthermore, CPAs can use AI to stay abreast of regulatory standards and compliance issues by processing and comparing information automatically.

AI can assist bookkeepers in performing bookkeeping tasks more quickly and accurately. AI can categorize transactions, reconcile accounts and generate financial reports more efficiently; detect suspicious activities based on changing transaction patterns or frequencies; report them, as well as serve as an invaluable tool against finance fraud. Over time, intelligent automation could even open up entirely new specializations within accounting.

Automation

Accounting has long been known to be a time-consuming endeavor. From understanding tax codes to managing financial data, accounting tasks take considerable time and require intense focus – often leaving little room for other work tasks to be accomplished.

Many accountants and bookkeepers are worried about how automation could threaten their job security. Although artificial intelligence (AI) technology is capable of performing many of the rote functions typically performed by accountants and finance professionals, it cannot yet replace humans completely in the workforce.

Automating manual accounting processes can free accounting professionals up to focus on projects that add greater value for clients, so it is vital for accounting professionals to embrace new technologies and learn to use them efficiently in order to stay ahead of the future of accounting. This will keep their skills sharp while positioning them to remain relevant within this profession.

Cybersecurity

It should serve as a wakeup call that in 2017, over 5 billion data records were lost or stolen – a 78% rise from 2016, representing an increased vulnerability across industries like accounting. Such vulnerability calls for robust multi-layer cybersecurity strategies to protect vulnerable entities like this one.

With more firms adopting cloud-based accounting practice management software, security should not be taken for granted. Direct attacks have increased significantly and may pose serious threats to a firm’s business operations or cause irreparable reputational harm.

Cyberattacks have become an all-too-real threat to financial data and must be protected as quickly as possible. For more information on how you can keep your firm safe from cyberattacks, download our employee checklist and read up on why a flexible workplace environment is vital for cybersecurity.

Data Analysis

Data analytics are revolutionizing how accountants work. With access and analysis of large datasets that were once inaccessible, accountants can now process these large sets of information more quickly, revolutionizing auditing by enabling them to identify outliers and anomalies; connect non-financial with financial data sets and compare predicted results against actual outcomes.

Accountants now have instantaneous access to information and can rapidly fix reports that contain errors, helping them make smarter strategic decisions and set useful performance benchmarks.

Automation has also reduced manual tasks that were once time-consuming and laborious, freeing accountants to assume more advisory and business management roles that drive organizational decision-making processes – necessitating them to upskill to stay ahead of their competition.

Legislation

An industry-wide shortage of qualified accountants and finance professionals continues to have an adverse impact. This shortage is exacerbated by educational requirements, prioritizing work/life balance considerations and retirement waves; yet many accounting firms have moved towards advisory services rather than transactional transactions as a solution.

Accounting firms are making strides to strengthen diversity and inclusion initiatives as younger professionals increasingly care about social and environmental concerns, expecting their accounting firms to address them with care.

Accounting professionals must also remain cognizant of legislation. Any changes in tax laws, financial reporting requirements or compliance frameworks have an effect on accounting professionals; as a result of such changes they need to update their practices accordingly and understand how blockchain can provide real-time access to data while improving security measures.