5 Ways Technology is Changing Accounting For The Better

• Reading Time: 4 Minutes
• Published: August 2, 2021
• Last Updated: March 5, 2025

The accounting profession is rapidly changing, thanks mainly to the productivity enhancements made possible by newer technologies. Task-oriented assignments are no longer a challenge for today’s accountant. Accounting software systems are becoming more automated due to change in evolving accounting technology, and the accountant’s position is shifting to that of a financial advisor. The modern accountant’s transformation into a business advisor necessitates new skill sets, such as judgement, professional scepticism, and critical thinking abilities. When it comes to new employees, accounting companies can continue to prioritise these skills.

Here Are 5 Ways How Technology Affects Accounting

1. Cloud Accounting:

One of the most significant developments in information technology in the last ten years has been cloud computing, which involves operating software remotely rather than on consumers’ premises. Whether it’s an email system like Google’s Gmail or various business software items like customer engagement, business planning, and document-sharing apps, cloud accounting has become prevalent in many businesses.

The cloud accounting software enables working remotely and real-time data access, allowing financial reports to be accessed at any time and from any location via mobile phones. The flexible software will adapt to the changing transactions as the company grows over time and removes the need for paperwork. It enhances knowledge sharing, usability, long-term viability, and security.

2. Artificial Intelligence:

Artificial intelligence and robotics processes can perform any task with extreme precision, lowering operational costs and increasing performance. However, these are some of the latest innovations evolving and transforming today’s accountant’s transitional position into a more complex role. These are some of the new technologies that assist today’s accountant in transitioning to a more critical thinking position.

3. Mobile Accounting:

Accountants and businesses want more from their accounting software. Detailed reports, ease of access to all information, ease of communication with the accountant, and much more while away from the office. Since the data is still at the users’ fingertips, it aids in improved financial information management and utilisation. Whether it is the accountant, bookkeeper, or management and company owner, everyone can work more effectively if they have access to the most up-to-date information. Accountants are becoming more reliant on their mobile devices for data access. Firms also rely on their smartphones or tablets to reconcile, submit invoices, add receipts, and make expense claims.

4. Advanced Tax Software:

Of course, the key justification for updating software is to stay current with tax legislation. Today’s tax software helps companies increase accuracy while reducing error margins, which they want to do to avoid tax penalties and problems with stakeholders.

Audits are also streamlined with better tax software because they are more reliable and accurate. The majority of the major tax software providers endorse real-time payroll data filing. It helps in tax planning, online filing, data submission to the IRS, and return populating. The tax forms are automatically revised for the new fiscal year, and you can also sign documents online if you are unable to attend the submission in person.

5. Social Media:

Accounting firms use digital media channels to communicate with their customers, embrace all the latest technologies, and personalise their services for their clients. For accounting service providers, social media marketing has become an important tool for engaging with customers and companies and marketing their services online.

According to business owners, social networking is a tool that will grow and develop and provide accountants with a powerful sales and marketing forum that can quickly link businesses with current and future customers. While most accounting firms recognise the value of conventional marketing in their company’s overall growth plans, many firms can underestimate the power of incorporating social media advertising into their long-term marketing strategies. Social networking can be a part of a company’s overall business growth plan, and when used consistently, it will help boost the efficiency of all other marketing and sales activities.

Conclusion

The accounting profession is now using a whole new market language. It will be the language of accountants in the future. Accounting technology has advanced tremendously, with significant future growth potential. The advances have opened up several new possibilities for the industry, which we have addressed in this article. Accountants will learn more specialised expertise in the future, allowing them to act as business consultants and strategic partners rather than just financial experts. Today, you can look for an accounting service provider from the comfort of your home and get a consultation right away. If you are on the lookout for an accounting and bookkeeping service provider, you can contact us today and schedule a consultation with our expert at Whiz Consulting.

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