Accounting innovation has always had a strong impact on businesses. All too often, companies that embraced innovation – whether it’s a startup or a growing enterprise – were the ones that successfully outperformed their competitors. If you are aiming to level the playing field with top brands in your industry, this is one of the things you need to tick off your to-do list. You need to understand the full extent of how innovation is influencing business accounting.
There are three major technological innovations in accounting which affect SMEs, namely: Cloud Accounting, Artificial Intelligence and Machine Learning, and Blockchain Technology. To date, knowledge and experience about traditional accounting methods alone will not suffice. Instead, you need to integrate the conventional accounting system with these aforementioned major innovations as these will prove to be crucial to the success of your company in the long run.
The convenience and flexibility of cloud accounting software is a game-changer for you and your accountant. With features such as 24/7 remote access, real-time collaboration, and automated bookkeeping functions, cloud accounting has made complex accounting functions easier for your in-house accounting team. This gives them more time to interpret financial data and at the same time, present valuable insights that can help your company reach its goals.
On the other hand, this same innovation empowers smaller companies. Even if these companies are not yet ready to hire their own accounting team, they can easily outsource accounting talents without worrying about gaps in collaboration and communication with the help of cloud accounting programs.
Artificial Intelligence and Machine Learning
Accounting software works well on its own but the rise of Artificial Intelligence and Machine Learning sets the bar even higher. Before, automating your bookkeeping functions with cloud accounting software still came with some errors. But with the addition of AI and Machine Learning in your software, it’s easier for your accounting program to spot these errors and suggest corrections. That’s one of the many ways AI and Machine Learning is helping you create better opportunities for accuracy, efficiency, and process improvement in your business.
Double-entry bookkeeping is a must-do for bookkeepers and accountants. It’s a tedious process that requires adding a corresponding entry to an initial entry that was made on a different account. With blockchain technology underway, this process may soon become obsolete. Instead of doubling entries, blockchain technology would allow an extensive network of computers to store different transactions, thus securing the records and making them tamper-proof.
As we speak, tech giants and influencers are further developing these innovations. No one knows for sure exactly how it’s going to progress and impact everyone’s lives in the foreseeable future. But one thing’s for certain: keeping up with innovation and embracing the benefits of modern technology today is necessary if you want to leverage your business effectively in the years to come.
Innovative accounting solutions are indispensable to the growth of your company. Find out how Deskera can help you use cloud technology to the fullest. Get in touch with our experts to schedule a free demo.