Current era of technological revolutions has changed the way we perceive our day to day life. Accounting is additionally not left untouched by the technological advancements and disruptive thinking to form the life easier and automatic. Accounting firms which don’t evolve with the changing dynamics always found them lagging behind in competition. This text is to introduce you to the present trending topics in accounting which you ought to search for in 2021.
1. AI (AI)
In simple terms, AI is that the computing system which has the power to find out from experience. Although AI techniques like machine learning isn’t new the market, now its pace of adoption in various businesses and industries are increasing. Accounting & Auditing is additionally one among them. For the right usage of the technology and switch vision into value, we’d like to possess a deep knowledge of the synthetic intelligence and its use in solving business problems.
Among other, Machine Learning is one among the techniques which may play vital role in accounting profession. An in depth use of ML in deciding process enabled accountants to form financial and non-financial analysis faultlessly. AI will eventually take over laborious work from accountant like data management, data entry, report generation etc. Therefore, accountants can devote time in value-added services like problem-solving, advising, strategy developing, and leading.
2. Collaborating platform
Now days, accounting isn’t just taken as posting daily transactions and generating reports. it’s perceived as a complete 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 enables communication of data with various stakeholders precisely. Some samples of collaboration are as follows;
- Sending customer’s statement directly via accounting software on one click
- Generating & submitting income tax return directly from accounting software
- Processing pay slip & sending to employees directly from accounting software
- Preparing payroll compliances directly from accounting software
Such more tasks which may be done by creating collaborating platform with accounting software which minimize efforts by accountants.
Blockchain technology is essentially an accounting technology. With the utilization of Blockchain technology, accounting efficiency are often increased via a system of universal bookkeeping services for small business. Moreover, scope of accountancy also can be expanded which can make accounts more closure to economic reality.
Unlike database owned other ledgers which are travel by single party, under Blockchain, ledgers won’t 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 with none 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 altogether the copies with authorized participants.
Because each user has its own copy of ledger, any dispute is often resolved with consensus. Moreover, any posted transaction can only be edited with the approval of majority participants. Thus, it are often concluded that when transactions are recorded on Blockchain ledgers, they’re permanent and free from any illegitimate altering.
Some Blockchain ledgers could allow programming which may 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 is often achieved through;
- Certifying and matching business processes supported pre-defined rules
- Role based controlled access and permission matrix
- Automated validation of vouchers supported pre-defined validation points,
- Creating peer to see linking and collaborate processes or source documents
As a results of automation, accountants can get obviate process-oriented tasks and may utilize their valuable time and skills on critical issues that fuels business growth.
5. Remote Staffing
Currently where the important word platforms are transforming into virtual platforms, accounting is additionally 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 ahead of eyes. Even online time tracking also as staff reporting and managing tools are simpler.
Read Also – Does Your Business Need Cloud-based Accounting?
This change the concept of remote staffing where your home of business and place of labor for your staff doesn’t got to be same. Remote staffing is useful in many ways; a number of which are as follows.
i. Cost reduction:
Cost is often reduced by exploiting Trade-off opportunities between different markets. For instance, due to wide differences in per hour rates of various countries, accounting services for small business are often outsourced from USA market to USA market by hiring remote employee in USA.
ii. Better utilization of resources and Increase productivity:
In case of remote staffing, you’ll hire staff for a required time and with required skills. Moreover, you’ll hire diverse staff for various activities for limited amount of your time. This provides you an immense flexibility and ultimately “You buy what you would like.” This leads to increasing productivity of the business.
iii. Increase in satisfaction:
As remote staff is performing from their place without other interruptive environment of office culture, they will better concentrate of their task and produce better result. Moreover, they will work on task driven approach instead of time driven approach which increases satisfaction among both the parties.
We at, Kayabooks have an expert team available to know your accounting, reporting and compliance requirements. Our remote staffing solution will take your entire accounting burden and add value to your business. We are prominent accounting outsourcing company based in USA. we will assist you to form your accounts accurate and reliable.