Current era of technological revolutions has changed the way we perceive our day to day life. Accounting is also not left untouched by the technological advancements and disruptive thinking to make the life easier and automated. Accounting firms which don’t evolve with the changing dynamics always found themselves lagging behind in competition. This article is to introduce you to the current trending topics in accounting which you should look for in 2019.
1. Artificial Intelligence (AI)
In simple terms, Artificial Intelligence is the computer system which has the ability to learn from experience. Although AI techniques like machine learning is not new to the market, now its pace of adoption in various businesses and industries are increasing. Accounting & Auditing is also one of them. For the proper usage of the technology and turn vision into value, we need to have a deep knowledge of the artificial intelligence and its use in solving business problems.
Among other, Machine Learning is one of the techniques which can play vital role in accounting profession. An extensive use of ML in decision making process enabled accountants to make financial and non-financial analysis faultlessly. AI will eventually take over laborious work from accountant such as data management, data entry, report generation etc. Therefore, accountants can devote time in value-added services such as problem-solving, advising, strategy developing, and leading.
2. Collaborating platform
Now a days, accounting is not just taken as posting daily transactions and generating reports. It is perceived as a total solution for Payable management, Receivable management, Payroll Management and Regulatory Compliance management. These expectations from accounting department can only be met if accounting software uses some collaborating platforms. This allows communication of accounting data with various stakeholders precisely. Some examples of collaboration are as follows;
- Sending customer’s statement directly via accounting software on one click
- Generating & submitting tax return directly from accounting software
- Processing pay slip & sending to employees directly from accounting software
- Preparing payroll compliances directly from accounting software
Such many more tasks which can be done by creating collaborating platform with accounting software which minimize efforts by accountants.
Blockchain technology is basically an accounting technology. With the use of blockchain technology, accounting efficiency can be increased via a system of universal bookkeeping. Moreover, scope of accountancy can also be expanded which will make accounts more closure to economic reality.
Unlike database owned other ledgers which are run by single party, under blockchain, ledgers will not be controlled by one party. Experts have defined 3P’s what differentiate Blockchain from other ledgers technologies of today as follows
Blockchain ledger don’t have many identical copies without any affiliated principal copy. All authority has full copy of the ledgers. Thus, no single authority can exclusively control the ledger. All the new transactions posted by any participant will reflect in all the copies with authorized participants.
Because each user has its own copy of ledger, any dispute can be resolved with consensus. Moreover, any posted transaction can only be edited with the approval of majority participants. Thus, it can be concluded that once transactions are recorded on blockchain ledgers, they are permanent and free from any illegitimate altering.
Some blockchain ledgers could allow programming which can automate ledger posting and journal posting on meeting criteria of trigger point. Experts have termed it as ‘Smart Contracts” under blockchain technologies.
Automation of accounting processes, specifically for routine and voluminous transactions improves speed, accuracy and reliability of the accounts. It helps greatly in reconciliation and balancing tasks. Automation can be achieved through;
- Certifying and matching business processes based on pre-defined rules
- Role based controlled access and permission matrix
- Automated validation of vouchers based on pre-defined validation points,
- Creating peer to peer linking and collaborate processes or source documents
As a result of automation, accountants can get rid of process-oriented tasks and can utilize their valuable time and skills on critical issues that fuels business growth.
5. Remote Staffing
Currently where the real word platforms are transforming into virtual platforms, accounting is also not lagged behind. All the accounting related tasks are being managed on the cloud or online platforms. This has broken concept of in-house accountant and staff in front of eyes. Even online time tracking as well as staff reporting and managing tools are more effective.
This make possible the concept of remote staffing where your place of business and place of work for your staff doesn’t need to be same. Remote staffing is beneficial in many ways; some of which are as follows.
i. Cost reduction:
Cost can be reduced by exploiting Trade-off opportunities between different markets. For example, because of wide differences in per hour rates of different countries, accounting tasks can be outsourced from USA market to Indian market by hiring remote employee in India.
ii. Better utilization of resources and Increase productivity:
In case of remote staffing, you can hire staff for a required time and with required skills. Moreover, you can hire diverse staff for different activities for limited amount of time. This gives you an immense flexibility and ultimately “You pay for what you need.” This results in increasing productivity of the business.
iii. Increase in satisfaction:
As remote staff are working from their place without other interruptive environment of office culture, they can better concentrate of their task and produce better result. Moreover, they can work on task driven approach rather than time driven approach which increases satisfaction among both the parties.
We at, CapActix have an expert team available to understand your accounting, reporting and compliance requirements. Our remote staffing solution will take all your accounting burden and add value to your business. We are prominent accounting outsourcing company based in India. We can help you to make your accounts accurate and reliable. For more details you can reach us on [email protected] or call us on +1 201-778-0509.