There is enough evidence that the adoption of digital technologies by organisations not only disrupts the economies of managerial and operational processes but also mobilises extensive organisational and social effects. Digitisation affects the substance, form and provenance of accounting information with consequences on the functioning of enterprises widely.
Over the last few years, technology has transformed how we manage different aspects of business operations and accounting is no exception. Access to advanced software that is faster and can perform more complex functions, as well as interconnected technology has made accounting efficient and easier. Indeed, analysing data, organising financial information, and measuring economic activity has never been simpler.
Digital Solutions In Accounting
The digital transformation is occurring not only in the core operational areas of the organisations, but also in the central functions such as human resources, purchasing, and finance. Surprisingly, it is also taking hold of the systems and processes in accounting at a rapid pace.
Paperless accounting, accepting invoices and other files by means of an interface directly into the accounting system, management of data quality, process automation, integrated consolidation system, real time reporting and cloud computing are some of the digital solutions being implemented by the organisations.
Digital Technologies In Accounting System
Machine Learning And Artificial Intelligence
Machine Learning and AI, the fast evolving technologies, enable the software to learn on its own and improve results without requiring human intervention. Additionally, AI-powered accounting applications can perform data entry and data sorting tasks more efficiently and accurately, can automatically reconcile the accounts and do the classification of accounting transactions based on patterns in historic data. Further, Machine Learning powered fraud management applications and expense management systems can flag fraudulent transactions and validate expenses respectively.
The deployment of Data Analytics helps in identifying trends, patterns, and insights that can otherwise remain hidden. It uses statistical methods and modelling to analyse the data.
With mobile applications dedicated to accounting functions, one can create and send invoices, capture receipts, gather signatures, and create expense claims. Further, one can use customer management software on their devices to improve customer communication and support. With the help of CRM software and increased connectivity, one can build better relationships with their clients.
Specialised Accounting Software
The rising popularity and easy accessibility to specialised accounting software and more efficient processing tools, has diminished the use of traditional pen, ledger, and desk calculator. These tools allow quicker input and computation of data, with very less scope of errors. Now, the accountant is able to focus more on how to protect and grow the client’s business.
How Technology Has Revolutionised Accounting Industry?
Digitisation of operations is not only beneficial for those working within the organisation but also for the clients. The advances in accounting technology have done away with the need for on-site consultations as both accountants and clients are able to access real-time data remotely, and view, edit, and comment on their statements simultaneously. As a result, a company can connect with its clients in the most convenient ways and serve more clients due to faster and more efficient processes.
Summing It All Up
The emerging digital technologies are making it easier for businesses to manage their operations and serve their customers more efficiently. Adoption of these technologies is important to develop timely financial insights and stay ahead of the competition. As organisations face mounting pressure to optimize costs, pricing, and efficiency, they are creating a “paperless office” within their finance functions. With the necessary regulatory frameworks in place, organizations only need to implement the right system and technologies, to start deriving benefits of the digitised business environment in finance and accounting.