“Accounting is not just about counting beans; it’s about making every bean count.” – William Reed
Introduction
In 5 years, the role of an accountant won’t be the same as it is today.
Using technology like automation is becoming the norm, not the exception. Accountants’ roles are also changing, where they are no longer simply bean counters; instead, they now help businesses build growth – and accounting automation software helps them do this.
As the finance industry shifts from manual to automation, tasks like bookkeeping, payroll, and invoicing are now automated, freeing up accountants’ time so they can focus on the bigger picture, like financial analysis and business strategy.
Here’s why automation’s impact in finance is transforming how accountants do their jobs.
What is Automation in Accounting?
Automated accounting uses technology to automate tasks and processes traditionally done manually.
It’s already here, and it’s here to stay. In cloud-based accounting, automation helps with bookkeeping, payroll, invoicing, and regulatory compliance.
Automation helps with reducing costs normally associated with manual methods (like paying a bookkeeper’s salary), as well as saving time as it eliminates repetitive processes (like compiling invoices).
What Are The Effects Of Technology On The Accounting Industry?
It’s undeniable that technological innovation has impacted accounting in multiple ways, especially by boosting efficiency.
Through automation, accounting software is transforming a range of tasks, especially those involving crunching numbers.
Big data, cloud-based accounting and artificial intelligence (AI) are just some areas that show huge growth and potential, and that are playing major roles in the industry and businesses alike.
How Has The Role Of An Accountant Changed?
The role of accountants has changed, and keeps changing as technology is ever-evolving. Here’s how automation is driving these shifts:
Automation Integration
More accountants are using automation tools to do repetitive tasks. This frees up their time so they can focus on more demanding parts of the job, like financial projections and strategic decision-making.
Data Analysis and Interpretation
Automation lets accountants analyze vast datasets to extract meaningful insights, so they can help businesses make better financial decisions.
Strategic Advisers
Thanks to automation, accountants have transitioned from number-crunchers to strategic advisers, providing financial insights and guidance for business growth.
Technology Proficiency
To stay relevant, accountants have to keep learning, as technology keeps changing. Along with leveraging automation, skills like data analytics and understanding emerging tech like blockchain is becoming increasingly important. This extends to keeping up to date with industry trends.
Risk Management and Compliance
Accountants now need to ensure compliance with constantly changing financial regulations, as well as setting up robust internal controls. Automation makes these complex processes much faster and simpler.
Cross-functional Collaboration
With their roles expanding, accountants need to be able to communicate and collaborate, especially with people who don’t understand ‘finance speak’. Soft skills such as critical thinking and adaptability come into play, and are just as important as mastering new technology.
What Are The Advantages Of Using Accounting Automation?
Accounting software helps accountants do their job better, from freeing up their time to improving decision-making.
Time Efficiency and Flexibility
Automation’s main drawcard is that using it saves time. This boosts efficiency so that accountants can be more flexible in other aspects of the job.
Cost Reduction and Increased Productivity
By boosting productivity and efficiency, automation saves money, as it eliminates expensive and time-intensive manual processes.
Enhanced Problem-Solving
Automation can automatically flag issues in internal control systems, saving accountants time and headaches.
Analytical Capabilities
When using robots, automation takes care of transaction and account analysis, so that accountants can focus on decision-making.
Improved Accuracy and Access to Information
Automation provides accurate bookkeeping as it reduces human error. It also gives accountants instant access to real-time accounts data.
Specialization and Consultation
Automation lets accountants drill down on what they really enjoy doing. That’s because automation deals with routine tasks, so accountants can focus on more challenging aspects of their roles, like consultation or strategy.
Increased Financial Statement Quality
By minimizing human error, automation helps improve financial statements so that they are more accurate to analyze.
Positive Impact on Attitudes
According to the Technology Acceptance Model, humans determine if a technology is useful or not depending on how easy it is to use. Automation can help with this, because once set up, an accountant can set it and forget it.
To learn more about the Technology Acceptance model from Newcastle University, click here.
What Are The Challenges With Automated Accounting?
Knowledge Gap and Skill Requirement:
Automation in accounting means that accountants need new skills to stay relevant in their roles. Adaptability, flexibility and willingness to learn are all essential for accountants today, and in the future.
Education and Preparation
To address automation’s challenges, students need to be equipped and prepared for a changing profession.
Diverse Attitudes and Adaptation
Not everyone feels the same about embracing technology and change. For some, there may even be fear of technology replacing jobs, and resistance to change can impact the uptake of transformative tech.
Organizational Change and User Acceptance
Implementing new technology in an organization is always challenging, as people may feel overwhelmed by major technology overhauls and the need to upskill. This can slow down digital transformation and hamper business growth.
Dependence on the Internet and Risks
Like any technology, automated accounting isn’t foolproof, and anything from a network disruption to a cybersecurity lapse can affect a business’s operations (sometimes with serious consequences).
Implications on Efficiency and Working Process
Resistance to new technology may impact accounting workflows and it can determine whether the implementation of the technology is even successful or not.
Conclusion
Today’s accountant is more than a bean-counter; they embrace technology to drive their role forward in a constantly changing financial and business landscape. Automation is just one way of helping this process along, and helping accountants do the best job possible.
To learn more about the power of automation using Sage Accounting Software, click here.
To read our article on Leveraging Technology for Efficient Business Operations, click here.
To learn more about Lescault and Walderman’s outsourced accounting services, click here.
Stay in the loop
