Automation has made its way into the world of accounting and has ushered in greater efficiency, redefining processes, slashing timelines and cutting costs. While automation in any industry attracts supporters and detractors alike, there is no mistaking the fact that it is here to stay and grow. Here are a few of the top changes that will be seen in the future in the world of accounting.
Simplified compliance through crisp reports
One of the most important requirements of accounting is compliance with regulatory bodies and automation is all set to simplify the process. Compliance includes the filing of reports in prescribed formats. Manual processes involved the compilation of information for generation of reports. Automation now extracts desired information, compiles and generates crisp reports in the desired format.
Filing of returns
Automation will assist in the filing of returns, taking away the need for extensive and exhaustive compilation. Applications will automatically parse information and data, compiling information that can thereafter be used for filing returns. Future applications will have the returns ready for filing through the online gateway.
Refocusing efforts on improving KPI
As automation takes over the more mundane and repetitive tasks, accountants will refocus their efforts towards higher level activities. Accountants will gain valuable insights from data, using the information to improve KPIs, turn budgets into more productive exercises and mange cash flows effectively with more quality time to devote.
Reports across devices
Generated reports will automatically find their way to verified devices, which will help stakeholders to query and receive updates on critical information. The availability of information across devices, will help business owners strategise, and respond to dynamic requirements without wasting time or requesting information.
Machine learning for intelligent decision making
AI and machine learning have transformed the manner in which data is segregated. Bots will be fully equipped through machine learning to segregate data into different categories without human assistance. This will save considerable time in sequestering data into different heads of accounts.
The rise of automation will result in more businesses opting for subscription-based accounting services. This will be entirely due to the combination of automation and cloud based accounting services. Businesses will look at customised options and look for solutions to meet specific requirements on a subscription model.
Big Data and analytics
Accounting is an entirely data driven function, with all processes hinging on the figures in various fields. The power of big data and analytics will transform the strategic ability of businesses, equipping stakeholders with information and insights that will help take informed decisions.\
Hiring of digital natives as resources
As automation begins to play a major role in accounting processes, the need for suitably qualified resources will expand. Businesses will increasingly look for digital natives with strong accounting knowledge to handle future requirements. Technology will partner with human expertise and this interface can be best handled by resources who are strong in technology as well as the domain.
The expansion of business advisory services
Business advisory services will account for a significant percentage of revenue as businesses rely on SaaS models and automation to take care of other basic accounting tasks. This will result in accounting firms reinventing themselves into advisory services to help clients expand operations and footprints.
Migrating to the cloud
As automation takes over bookkeeping and basic accounting services, businesses will move their accounting en masse to the cloud as the most cost effective platform for meeting requirements.
Automation will continue to impact industries, and accounting is no exception. However, regardless of the extent of developments and the nature of cutting edge technologies, tasks that require the expertise of humans to look at complex data and dynamic situations, will not be replaced by automation. Automation will impact repetitive basic accounting and bookkeeping services, but will play a more supportive role in processes that demand the experience of specialists.