6 Innovations That Has Transformed the Accounting Industry
January 13, 2022
In the last decade or so, technology has made accounting much more approachable and accessible like never before. With the emergence of so many tools and applications that help companies with their business processes as well as the handling of big data, the accounting industry also has its fair share of milestones because of these innovations. In this guide, we’ll discuss some of the ways new technologies are transforming accounting and how the industry can greatly benefit from it.
1. Cloud Accounting
Cloud accounting is the most revolutionary breakthrough in terms of accounting because it has made the industry more accessible and easier for people to use. Cloud accounting is essentially a set of applications hosted in the cloud, allowing users to pay for the applications according to their usage. This has resulted in many companies taking it up as a standard practice. The cost of setting up accounting software has also been reduced significantly.
2. Accounting APIs
The technology world is inundated with the concept of APIs. These Application Programming Interfaces provide the developers with a way to develop applications that can talk to each other. APIs are usually present when various processes need to work together with some form of communication. Cloud technology has also added to this concept where they can transact data with each other through APIs. This has greatly benefited the accounting industry as well and has helped businesses automate their accounting processes.
3. Mobile Accounting
Similar to the introduction of the cloud, mobile accounting is a revolution in the accounting industry. The concept uses cloud accounting which is easily integrated with mobile devices. Mobile technology has undergone tremendous growth in the last decade, and hence, it is only natural that accounting software companies introduce mobile-friendly applications. These mobile applications help accounting professionals to work at the same speed as their clients do.
4. Big Data Processing
Big data is a relatively new term in the accounting industry, and it is still in its nascent stages. Big data is usually vast and mostly unstructured and is stored in databases. The data is then stored in a high-capacity computer storage where it can be processed efficiently. Accounting software companies are expected to process this data from the financial records of their clients, as well as from all their daily transactions. Big data processing allows small to medium-sized businesses to adopt the same technology used by larger corporations.
SaaS, or Software as a Service, is another technology that is making waves in the accounting industry. The concept followed by SaaS is that the software is hosted on the cloud and is updated frequently, meaning that the software can be used by the companies indefinitely. These software applications are designed in such a way that they are compatible with various devices, which makes them easy to use. This is one of the most affordable and easy accounting software options available to businesses today.
6. Robotic Process Automation
Robotic process automation is another concept that has gained popularity over time. It is basically the automation of a business process using software. Business processes are automated by using software that can assist the employee in performing their usual responsibilities. Many of these tasks can be repetitive, and hence, it makes sense to automate them using software.
The above technology trends are expected to change the future of accounting and, in turn, redefine the way the whole industry works. From accounting software to big data processing, technology is the answer to faster, efficient and more affordable accounting services.
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