The accounting profession is undergoing an enormous shift. Every industry worldwide is undergoing a seismic shift thanks to emerging technology such as artificial intelligence, blockchain, and more. Accounting is no different. From cloud computing to ERP, accountants must understand and embrace the technological changes taking place to make the best use of them.
Automation for Accounting
We tend to think of automation as something that only manufacturers need to worry about, but in truth, automation impacts nearly every profession (and that’s not necessarily bad news). Automation refers to technology that performs a task that humans find onerous. Think of putting caps on bottles; nobody really enjoys sitting at a table all day long screwing caps onto bottles. Automating the process of capping bottles is a simple way to illustrate how automation can take a repetitive task and make it more efficient.
What do we mean by automating accounting, however? Well, there are certain tasks that most accountants also find onerous. Sending out monthly invoices, for example, is a task that can be automated.
It’s important to keep in mind that automation can’t necessarily take over all jobs. It can enhance existing jobs so that time can be saved for more highly skilled tasks. The time saved sending out invoices each month to a regular set of clients can be spent analyzing the data that can help your company be more profitable.
Cloud Computing and You
Another driver of change throughout the field of accounting is cloud computing. According to Forbes, expenditures on public cloud computing will exceed $411 billion by 2020. Businesses are switching to cloud accounting ERP software, financial software, and other operations software.
Research indicates that accounting firms who embrace cloud computing benefit from the switch. Xero reports firms with 100% of their clients using cloud computing saw a 15% increase in their revenue year over year, compared to 4% for more traditional firms. Clearly, accounting firms using the cloud experience noticeable benefits.
Cloud computing moves software off the hard drives located on premises into an interconnected group of computers accessed through the internet. It enables on-demand access from any internet-enabled device and is easily scaled according to demand. Cloud services are easy to use, easy to scale, and more cost effective than purchasing site-based licenses.
Accounting ERP: New Advances for Accountants
Enterprise resource planning (ERP software) got its start in the 1960s as an inventory control package; the 1970s and 1980s saw the evolution of material and manufacturing systems (MRP and MRP II). Accounting processes were part of such a software bundle but usually kept as a separate module.
Today, ERP includes advanced accounting as part of its core function. Many new cloud-based accounting ERP packages also balance the needs for secure financial data with easy cloud access to ensure secure yet convenient services.
Skills Every Accountant Needs
When you embarked on a career in accounting, you probably didn’t anticipate the need to understand advanced technology, too. Fortunately, you need to understand how the technology affects your job and how to use it, not necessarily how it works.
Cloud ERP accounting applications you improve your financial planning, tracking, and reporting. The more you understand about new technologies such as cloud software, the more you can utilize them to improve your work. Although change can be uncomfortable, the more you know about the changes taking places throughout the industry, the better you’ll be positioned to take advantage of them.
Would you like to learn more about trends in accounting? Download this eBook, The 6 Skills Accountants Need to Weather Any Change.
Accounting ERP: Emerald TC
Emerald TC can help you with ERP selection. Contact us or call 678-456-6919 for more information about cloud-based accounting ERP.