Impact of Technology on the Accounting Profession
Technology has made an undeniable impact on the accounting industry. Before accountants had computers, they had to use calculators to manually reconcile financial documents against paper ledgers. Records were significantly less accurate than they are today, and calculation errors were difficult to catch.
The advent of computer-based accounting technology dramatically changed the accounting industry. The most significant technological changes occurred after accounting software became widespread.
How Has Software Changed the Accounting Profession?
Of all the information technology advancements that have shaped the accounting industry, software has had the largest impact. In the latter half of the 20th century, technology companies developed innovative spreadsheet software for accountants to use on computers. Instead of using handwritten ledgers and calculators, accounting professionals could now automate equations in an electronic spreadsheet. Spreadsheet software allowed public accounting professions to spend less time on tedious tasks and focus more on finding solutions for high-level issues.
Early spreadsheet software paved the way for more advanced technology, including automated accounts payable software and payroll and tax automation programs. Automated accounts payable software eliminated the need for manual data entry by pulling essential information from financial documents and entering that information into a database. Payroll and tax automation software streamlined human resource tasks by automatically calculating payments, applying tax rates, and storing employee tax information.
Recent Changes in the Accounting Profession
Over the past few years, accounting technology has advanced to adapt to changing needs in the workforce. Here are some of the major technological advancements that have impacted the accounting industry recently:
Cloud computing: With cloud computing, accountants rent server space in off-premises locations, and they access stored information over the internet. Cloud-based software systems free up space on accountants’ internal hard drives, and they allow multiple workers to collaborate on financial tasks, even if they’re in different places.
Enterprise resource planning (ERP) and customer relationship management (CRM) platforms: Most ERP and CRM platforms incorporate accounting technology. By integrating accounting processes into their organization’s existing system, accountants can keep track of hours, expenses, invoices, and payments. Additionally, accountants can more effectively communicate with clients and coworkers using ERP and CRM platforms.
Virtual communication platforms: Accountants often feel cut off from other organization members, and it can be challenging to relay financial information to coworkers. With cloud-based unified communication platforms like Microsoft Teams, accounting professionals can easily share information through chat, video, and voice.
Outsourced accounting: Many companies are choosing to downsize their accounting department and hire a third-party provider for outsourced accounting services. Outsourced accounting firms can employ the best technology and financial reporting processes at a low cost to clients.
Future Trends in the Accounting Profession
The recent technological changes in the accounting industry provide an indicator of new trends to come. Industry professionals expect the following technology advancements to change the future of accounting:
Artificial intelligence (AI): As accountants continue to focus more on high-level accounting processes, they are expected to turn to AI technology for further automation. AI can perform basic tasks and answer simple client questions outside of work hours, and in the future, AI might be able to automate more complex financial tasks.
Blockchain technology: Blockchain technology is currently known for its use in cryptocurrency, but it might enter the accounting world in the next few years. Blockchain uses an extensive network of computers to create a highly accurate virtual ledger of accounting information, and it might change the way that accountants store and analyze data.
Preparing for the Future of Accounting
Accounting is an ever-changing industry—technology providers are constantly releasing new, innovative accounting technology that changes the way accountants do their jobs. To keep up in the accounting sector, you have to keep up with technology trends. However, many businesses don’t have the time or resources to adapt to new trends.
Discover Your Future in Accounting
Accounting is undeniably changing, largely because of intelligent technology, including machine learning, AI, and blockchain. With any evolution, those who aren’t willing to adapt risk being left behind.”
Future accounting jobs will require dedicated professionals ready to evolve alongside the industry. Don’t let yourself be left behind — learn more about how you can gain the skills that can bring your career to the next level by enrolling with Get Trained Get Hired. If you need any assistance in preparing your resume or you need more specific interview guidelines that best suit your personal requirements to have a breakthrough in the Canadian job market reach out to Gettrainedgethired.com to book a free 30-Minute career counseling meeting. At Gettrainedgethired.com we provide you with the necessary training to learn practical skills to become an accountant. Our training is based on practical real-life cases. After the training, we work on your resume and try to place you in accounting firms through our network. You will also get access to like-minded individuals who are looking for jobs through our WhatsApp group. Please feel free to contact us at [email protected]. Or call us at 647-870-6986
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your situation and is not intended to be used without consultation from professionals. Salman Randhawa and Gettrainedgethired.com will not be held liable for any problems that arise from the usage of the information provided on this page.