Over the last few years, most aspects of business have been digitalized. Thousands of brick and mortar stores have transitioned to e-commerce platforms. Billboard advertising is losing ground to social media advertising. Print media is slowly taking a backseat, and concepts like SEO and digital marketing have come to the fore.
But where does accounting fit into this picture? Cloud computing and accounting software are more prevalent than ever, but does this mean that accountants will no longer be needed in the near future? Are we ready to fully rely on smart accounting solutions to get by?
Let’s find out in this blog:
The rise of digitalized accounting
The past few years have witnessed a sizeable surge when it comes to the use of digital accounting mediums. There has been a shift from traditional accounting to using accounting management systems, for example.
According to research, the government has played a constructive role in promoting technology-driven accounting solutions. This includes spending on software installations in most public and private organizations.
In 2017, QuickBooks Online had over two million subscribers all over the world. The interesting fact is that over 80% of its users were using online accounting software for the first time. This means that businesses are taking their accounting processes online.
It is further assumed that this year, the most common accounting tasks, like payroll, tax computation, and audits could be completely automated. It is expected that artificial intelligence and machine learning may have an important role to play in this capacity.
However, it is also predicted that this may disrupt the way accounting tasks have been taking place for the past 500 years!
The rise of cloud computing
Cloud computing can be single-handedly credited for the rise of accounting digitalization. As per research, it is predicted that by the end of 2020, the cloud computing market may hit the $300 billion mark!
This may pave the way for further developments in the field of digital accounting. If you only consider North America, 65% of businesses use cloud-based platforms for their accounting needs. Other than that, around 66% of them have internal private clouds.
Another study by Forbes states that the upcoming phase of cloud computing is going to be beneficial for all sorts of digital businesses. This is because it will now start facilitating transformational innovation.
More and more companies are integrating innovation practices into their corporate culture for better growth. Businesses are now using cloud-based accounting solutions to stay ahead of their competitors and keep up with changes in the market.
The earlier you adopt cloud-based solutions, the quicker you will be able to overcome your competition.
Will technology completely eliminate the need for accountants?
The answer is both yes and no.
As the use of accounting software increases, it will be easier for businesses to automate basic, time-consuming, and repetitive tasks. This will not only save time, but will also reduce accounting errors.
Accounting software will also help businesses eliminate redundancies. There will be no need to spend hours trying to record transactions or maintaining books. It will also help businesses share and manage data over the cloud in a way that’s safer and more reliable.
Businesses might not have to pay tax consultants for quarterly tax filing or payroll professionals to manage their payroll-related tasks. Most accounting software allows business owners to take care of most of these tasks without seeking external help or hiring an additional accountant.
However, this does not mean that the rise in accounting digitalization will make accountants go extinct. Accounting software helps accountants and bookkeepers move to more of an advisory role.
The job of accounting software is to give accountants all the data and resources they need for better decision-making. Fortunately, the ability to analyze financial information and make relevant recommendations still lies with humans. The software only buys you more time to spend on critical thinking, analysis, and better innovation.
Here’s your chance to digitalize your accounting processes. gotomyerp is helping businesses streamline their accounting processes by adopting cloud-based solutions. Get in touch to learn more about our QuickBooks hosting and Sage cloud hosting services. We also provide technical support and consultation services to gotomyerp clients.