Five ways technology is transforming the future of accounting

Finances rule the business world, there is no doubt about that, but technologies such as marketing automation, lead generation, firm improvement and development software are making it harder for a modern accountant to keep up the pace. Knowing what this type of a professional needs to do in order to stay on the right track is the key to understanding the future of accounting.

The cloud

The cloud environment has completely changed how the business world works – on the one hand, it has sped up a variety of processes allowing access to every file users might need while they are in an area connected to the web; on the other hand, it has rendered itself an unavoidable part of any business that is looking to succeed.
When it comes to accountants, a mere couple of years ago they would have needed to spend a lot in order to provide the best possible financial suit for servicing their clients. Nowadays, with cloud accounting, it takes less than $100 per month to obtain professional finance and accounting tools, thus rendering the old business model completely redundant.
The advancements in the cloud environment are far from their plateau – an increasing number of innovative applications with even more advanced analytical tools and larger data sets are just around the corner.
Essentially, what this means is that a modern-day accountant can take on more clients than ever while providing their services globally!

Thinking globally

As previously mentioned, modern accounting is spreading its reach across the entirety of the planet. This does entail working with clients on their own time-zonal terms, but working nights and early mornings is really a small sacrifice for the amount of success that global accounting brings to the table. And truly, with the modern technology, one no longer needs to have personal appointments – Skype conference meetings have already become a regular thing! Of course, meeting in person is always preferable, but making the most out of what the Internet has to offer is usually more than enough. Besides, all the cashflow data is right before the accountant, almost on-demand, almost like meeting in person.

Adapting

Forget about those who believe that the cloud and other technological advances are costing accountants and bookkeepers their jobs. The truth is, technological advances in accounting have received a vast support from accounting professionals themselves! In fact, when it comes to small and micro businesses, the financial gurus have taken this opportunity to expand their service and value, which brings us to the next point: you’re going to need to keep up if you want to step into the future of accounting. A certificate IV in accounting provides students with all the basics of modern accounting, and even more importantly, with the knowledge of using the popular pieces of accounting software that are on the rise.

Freelance

Much like the shift towards cloud computing, the tendency towards alternative means of employment has also started to emerge. We’re talking, of course, about freelancing and contracting, which has not only completely reshaped the accounting part of the business landscape, but also created brand new opportunities for accountants. In truth, there are many reasons why the future of many professions is, in large part, in freelancing and contracting, and accounting is a prime example rather than an exception.

Education requirements and other issues

To sum it all up, future accountants will need thorough education in digital technology, globalization and evolving regulations, such as tax regulation, but also new forms of corporate reporting, integrated reporting regulation and much more. At this moment, which is the turning point of this profession, a vast number of accountants have huge skill gaps caused by the fact that the regular education couldn’t really predict the ongoing trends with certainty. These gaps include their lack of knowledge about transformation of new disclosure regulations, new forms of disclosures and awareness of the connection between financial and non-financial reporting.
When it comes to research, large accounting firms are already conducting surveys on the mentioned cloud computing, but not without brushing against the ever-popular big data, integrated reporting and even carbon emission accounting.
Increased regulation and disclosure rules that are associated with it are likely to have a huge impact on the profession in question, owing to ongoing problems, such as massive tax avoidance, transfer pricing and money laundering, i.e. the plagues of modern accounting.

The future of the accounting profession is really already here, and if you’re one of these professionals who are still doing things the old way, you can rest assured that the need for keeping up with the modern trends is going to come knocking at your door really soon. Focus on cloud computing, think globally, learn how to adapt, but most importantly, consider joining the freelance crowd.