The rapid technological evolutions have transformed every industrial sector. Marketers already use digital marketing tools to automate campaigns. Likewise, entrepreneurs have improved workplace productivity with task management and communication applications. Now, accountants are also stepping into the tech-savvy landscape to improve financial management. From automated software to high-tech devices – they are taking advantage of technological disruptions.
Any idea about emerging trends in the field of accounting? Artificial intelligence and data analytics have become increasingly popular in the finance world. In addition to automation, analytical tools can help companies make more informed decisions. Similarly, blockchain technologies are likely to reshape the payment structure. After all, the decentralized ledger doesn’t involve any financial intermediaries. In short, the emerging accounting trends will strengthen financial infrastructure and improve profitability.
In case you are not up to date with emerging trends, have a look below. Here we are highlighting the top five trends influencing the accounting field in 2021.
Automated Accounting Processes
Today, accounting professionals automate all labor-intensive tasks such as auditing, tax calculation, bookkeeping, and payrolls. They use high-tech accounting software to automate these routine tasks and improve efficiency. The software can also send invoices to clients, pay utility bills, and make debt repayments with interest. In addition to speeding up the procedures, automation reduces human errors and workload. In turn, accountants can take advisory responsibilities and help companies in the decision-making process.
However, the use of automation in today’s accounting processes requires comprehensive know-how of finances. You must be familiar with debit and credit policies, accounting standards, and crucial record-keeping principles. Even though short courses can come in handy, opt for higher education to understand the accounting world inside out. You can complete an online MAcc degree to invest in emerging accounting solutions and make the business thrive.
With spiking uncertainty in the stock markets, the investment companies relied on data scientists to determine future patterns. Now, machines can crunch vast amounts of data within minutes and highlight potential price fluctuations in the stock markets. The AI-enabled servers monitor past patterns and anticipate under what circumstances those patterns can repeat.
Moreover, the companies can also automate their risk portfolios with the help of artificial intelligence. The AI-enabled servers can assess every person’s risk appetite and prepare investment portfolios accordingly. Likewise, the servers can also send alerts when the market is falling. As a result, investors can decide whether to stay in the market or sell their stocks immediately to avoid losses.
Data Analytics & Forecasting
Big data is providing unprecedented amounts of information to business leaders. From clients’ transactional patterns to prevailing interest rates – accountants have also started to leverage big data with the help of analytical tools. Analyzing numbers and financial data can help enterprises develop valuable insights and improve business efficiency. Perhaps, you can conduct a comprehensive cost analysis to identify process improvements and make the business more cost-efficient.
Likewise, you can apply data analytics in tax, consulting, auditing, and risk management. Accountants can also prepare accurate financial forecasts by observing past data trends through analytical tools. However, utilizing these data analytics solutions isn’t as straightforward as it sounds. It would help if you had advanced analytical skills and proficiency with technology. You can complete an online masters in analytics to learn about data analytics and integrate it into accounting processes.
Financial Advisory Services
Previously, companies had to bring financial advisors on board to foster the decision-making process, but now, things are changing. In 2021, the organizations are looking forward to Robo-advisors. These are AI-enabled robots that offer financial advisory services to companies. The bots thoroughly analyze financial data and market dynamics to develop suitable solutions. For instance, if you are skeptical about financing machinery, the bots can throw light on the interest rate, risk, value of money, and repayment capacity.
Moreover, artificial intelligence bots can advise companies on mergers and acquisitions. If you want to acquire another company, the Robo-advisors will highlight its financial performance. Simultaneously, it will consolidate the financial statements, demonstrating the impact of the acquisition on the company’s performance. If the profits start declining, you will have enough time to rethink the decision about the business acquisition.
Currently, blockchain has become a buzzword in the finance sector. It utilizes independent computers to share, record, and synchronize transactions into a decentralized ledger. It also employs standard protocols and processes across the entire network, ensuring transparency. Organizations can maintain records and make transactions without involving banks or financial intermediaries. It decreases the transactional costs since companies no longer have to pay bank charges for incurring international payments.
Additionally, the blockchain applications record liabilities, assets and help with accounts reconciliation. With accurate record keeping, the accountants can ensure compliance with regulatory bodies and accounting standards.
Businesses must keep up with the latest innovations and incorporate them into business operations. Instead of exhausting accountants with bookkeeping tasks, opt for automation. Similarly, you can leverage artificial intelligence to make investment decisions rather than depending on market speculations. In addition to improving workflows, effective accounting processes can set up the business for success.