CHANGING DYNAMICS OF ACCOUNTING INDUSTRY

Technology advancements has redefined the way Finance and Accounting industry works.
Accounting practices are now increasingly becoming automated, with accountants focusing
more on analysis, interpretation, and business strategy.
As an entrepreneur, it is essential to be aware of the technological changes and advances
taking place in the accounting processes and the industry. To get started, let’s take a closer
look at the key emerging trends and what it really means to you in the future:
1. Data Analytics/Big Data

Put simply, data analytics is a science of analysing raw data in some information which
can help to draw conclusions. Accountants use financial data and formulate it in a way
that’s understandable; allowing management to draw conclusions and help the company
recognize trends and metrics that otherwise would be lost in the mass of information.
Data analytics tools such as Google Analytics, Microsoft Power Bi, etc. could be very
useful for the entrepreneurs to strategize their finance and operations.

2. Artificial Intelligence

Artificial Intelligence (AI) extends the capabilities of computing by creating algorithms

to classify, analyze and draw predictions from the large chunk of data and execute
repetitive tasks. It is used to process large volumes of repetitive tasks and create
patterns, for accountants and firms to focus on the analysis and strategic decision
making. AI tools like Zia by Zoho, Semine & Dynamic 365 by Microsoft etc. could be
used by small and medium sized enterprise to large corporates.

3. Mobile computing

As corporates and entrepreneurs increasingly use mobile devices to access their

data and the Internet, accounting services are changing to meet the demand.
Accounting software vendors are responding to this shift by creating online portals
and apps that are specifically built for mobile device with in-built security
encryption for data security. The goal is to help them stay on top of their business
on-the-go. Mobile applications from Zoho, Quick Book, XERO etc. enables such
enhanced functionalities to manage your business on the go.

4. Cloud based accounting

Cloud accounting software is hosted on remote servers, where the data is sent into
“the cloud,” where it is processed and returned to the user. This provides
accountants with secure access to the desired information in real time from any
device. With permission-based sharing; the accounting files can be shared with the
relevant stakeholders easily, enhancing the shared relationship. It provides
transparency and adds value as the availability to assist with information is on-
the-go. Microsoft, Google, Zoho etc are leading the charts in providing the cloud
services.

Accountants use the aforesaid technologies to extract critical information which can
prove valuable to the businesses from following perspective:
 a. Monitor and Improve Business Performance: Reviewing financial information
to ensure the company is running well, meeting goals, and maintaining or
improving performance. These technologies will provide statistics and recent
business trends using relevant historical data which could prove essential to both a
business’s sustainability and survival.
b. Identifying and Manage Risk: There are limited areas where risk can be
identified and managed. By having understandable data points to work with,
accountants can review the various areas of risk faced by the businesses and use
predictive analytics to make relevant decisions around specific risks, leaving the
company with a more clear and risk-averse future.
c. Information management: Seamless integration, real-time access and scalable
storage with secured encryptions are helping the company to streamline data
management.

These advancements are here to stay, and its importance in the business environment is only
going to grow in the future. As they make the lives of an entrepreneur simpler by providing
greater insights, this blurs the line between accounting and strategy.

It’s time to adapt these ‘changes as the new beginning’ to move beyond outdated accounting
processes and empower your teams to work smarter and more efficiently. So, if you’re
looking to understand the key trends in the accounting industry and processes, this is your
guide to go.

Stay tuned to our next article for more details!

Pro-tip:

Here’s how you can do it.

Leverage the combination of data and process standardization, embed internal controls,
and real-time reporting and dashboards, to continuously monitor and evaluate
performance to drive further process optimization. Seek service of CPA/outsourcing
firms to gather expert advice to streamline your business objectives and maximize
potential growth in business development. Let’s connect for more information.