When you consider the scale at which modern-day technology evolves and improves over time, it's no wonder why so many organizations rely on it to keep their operations running smooth and efficiently. Regardless of an organization's industry or size, innovative technologies continue to be a driving force of success for nearly all businesses, providing countless opportunities for increased growth and sustainability.
Of course, while most departments in an organization can benefit from business technology investments, specific departments benefit more than others. One of those departments is the accounting team.
The benefits of innovating accounting processes
Regardless of how much an organization invests in technology solutions for their company, nothing replaces the importance of having qualified accountants on staff capable of handling the business's financial needs. Accountants play a crucial role in driving business efficiency and providing critical information to company stakeholders to make informed decisions about the organization's future success.
However, when provided with innovative tools and technology that help streamline system processes, accounting departments can quickly transition from being considered a "cost center" to a "profit center."
When properly integrated, accounting technologies can completely transform how accounting departments manage their day-to-day activities. This can result in benefits such as:
- Higher productivity and increased output within the department
- More in-depth analysis and business visibility
- Faster data retrieval and improved efficiency in ERP (Enterprise Resource Planning) systems
- Better accuracy and less human-prone errors
- Powerful accounting technologies available to businesses
Today, accounting technologies come in all shapes and sizes, and there isn't a one-size-fits-all approach when improving a business's financial systems and processes. However, there are several robust solutions available today that many companies have already begun to implement. Below is a list of four of these powerful accounting technologies:
Blockchain Technology
Blockchain involves the transfer of ownership of assets by using a distributed ledger of accounting information. This technology has several use cases in the financial sector, but for most businesses, the benefits include streamlining audits and providing transparent records of financial data. Blockchain technology is incredibly powerful when leveraged to improve traditional accounting processes while also reducing fraud and improving regulatory compliance.
Cloud-based Accounting Systems
For several years now, businesses have been capitalizing on cloud-based systems and services to improve their scalability while also reducing their overhead expenses. Cloud-based ERP systems and other accounting services significantly improve visibility and operational efficiency across the organization. For accounting teams, this added visibility and remote accessibility of cloud-based accounting systems can give them the flexibility they need to streamline the business's many financial functions.
Big Data
As more advanced technologies with powerful computing capabilities have become available over the years, the ability to leverage big data analytics has been a game-changer for accounting departments. Rather than building and managing multiple spreadsheets to make sense of business and financial information, big data and its supporting technology have paved the way for more accurate and advanced forms of data analysis. Big data allows organizations to build highly accurate financial reports, risk management evaluations, cash flow forecasts, and other mission-critical business metrics in real-time.
Robotic Process Automation (RPA)
Now positioned as a significant business productivity element, RPA (Business Process Automation) can be applied in various cases across an organization. RPA involves using self-executing software programs driven by artificial intelligence to automate any number of manual tasks. RPA has expedited the shift towards the digitization of paper documentation and legacy invoicing processes. Using RPA, accounting teams can automate even the smallest, repetitive tasks, whether entering and converting data, submitting invoices, managing PDF documents, or compressing files.
Looking ahead to the future of accounting
As these financing technologies are utilized more, it’s apparent that the future of business is more remote and digital than it has ever been. The rush to create sustainable and scalable remote working environments has placed a high priority on developing innovative accounting technologies that favor those conditions.
The adoption of cloud-based accounting platforms and hybrid cloud integrations will undoubtedly continue to increase over the years as businesses look to create better visibility across their systems regardless of where employees are located. Artificial intelligence will also continue to play a vital role in improving accounting efficiency and automation, helping businesses support various structural changes while improving their overall costs.
There is no doubt that it's an exciting time for businesses to start looking at new ways to improve their accounting processes. By investing in these powerful accounting tools and systems, organizations can position themselves for greater financial stability while streamlining operations and enhancing their departmental efficiencies.
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