One of the most important aspects of any business is accounting. The primary role of accounting is to maintain a systematic record of all financial transactions so the business is aware of whether it is making a profit or not.
However, accounting has long been known as a long and arduous process plagued by hours of number crunching. However, times have changed. Thanks to advancements in technology, accounting has never been so accurate and efficient.
From artificial intelligence to cloud-based software, we take a look at some of the ways that technology is improving the field of accounting.
Cloud-based accounting software
Cloud-based systems and the data they hold are held on restricted servers controlled solely by data management corporations. The benefit of this is the data can be accessed from anywhere – so long as there is an internet connection.
Through this, you can provide instantaneous data for your clients and can rest assured that this information won’t be lost in the event of a system failure. Businesses can even hire professional accountants to work off-site without the need for supervision, taking advantage of the remote working capabilities and real-time updates.
All you need to put this software into practice is a strong internet connection. Thankfully, most major cities in the UK have quality network connections, especially London which is ranked among the top cities in the country for network speed and stability.
Artificial intelligence tools
Machine learning tools, also known as artificial intelligence, are gradually making their way into the accounting industry. Not only do they offer a more sophisticated data analysis but they also reduce the risk of errors in financial forecasting. No longer do employees need to spend hours on end completing mundane admin tasks, freeing up valuable time to be used elsewhere.
Better yet, AI-powered chatbots are increasing in popularity, ensuring customer support is on hand at all times. Many large corporations are now using AI to their advantage, developing their own solutions to streamline their operations.
Data analytics and big data
Businesses receive an abundance of data every day. This ‘Big Data’, while extremely insightful, can be difficult to unravel and put to use. Fortunately, data analytics is able to figure out trends from these large amounts of raw data to then make data-informed decisions.
The data is either looked at in big batches over a long period or in shorter batches in a much shorter space of time. Regardless, big data analytics will always be a fast and cost-effective method for your accounting processes.
Another benefit is that it can identify any potential issues within your work that you may have initially missed, ensuring that all client work is kept to a high standard.