The accounting industry has gone through a very vast phase of evolution and as the world became more dependent upon technology, the accounting professionals also joined the journey. The one industry which was once driven by numbers, papers, and the ability to manage books only is now tech-driven, highly-professional and diversified.
Earlier, when people talked about accounting, they meant only bookkeeping, calculation, and tax filing but now when people talk about accounting they mean a tech-driven professional service which involves participation in major decision-making processes and an important pillar of growth for any business. The importance of accounting and financial management hasn’t changed over the years but the way of doing accounting has changed a lot and that has allowed this amazing industry to be independent, diverse, opportunistic, effective, fast and accurate.
Nowadays, more and more people are joining the accounting industry as most of the people have understood that accounting is no more a boring job with huge piles of papers to deal with but it a completely modern way of managing finance by using the latest available technology. There are many ways in which the available technology has changed the accounting industry but one of the most powerful driving factors of technology which has brought the much-needed change in the accounting industry is automation.
Whether is the use of AI in auditing, or cloud computing for accessing your accounting software, every technology in the accounting industry has improved and promoted automation. With the help of automation, accountants have been able to do wonders in their job and that’s why automation has played a very important role in shaping the accounting industry.
Automation is not new for the accounting industry as with the introduction of the accounting software, we had our first step towards automation but the current available technology has taken automation to the next level and looking at its current rate, we might see most of the accounting processes getting automated in the near future but it doesn’t mean that we will never need a CPA or accountant as the value of human mind in financial management can never be replaced.
So, let’s see some of the benefits of automation in the accounting industry and how it shaped it the accounting profession towards perfection.
One of the biggest drawbacks of the accounting industry was errors. Humans are not perfect and therefore, making mistakes is a very natural thing and especially when you are dealing with numbers, books and calculations for the whole day. Earlier, errors were very normal in the accounting process but with the help of automation, these errors were minimized and that’s how it started stepping towards perfection. Nowadays, due to the availability of cloud accounting solution and use of AI, errors are very rare in the accounting process as most of the things don’t require manual entry or calculation and with less mundane and lengthy work at the accountant’s desk, errors started getting diminished. In comparison to the errors occurring in the traditional method of accounting, the modern day accounting solutions are proving to be much better and that’s why more and more people are opting for it.
Along with the reduction in errors, automation has also played a very important role in enhancing the productivity of accounting professionals. In the traditional system of accounting which involved no automation, a lot of time was wasted in dealing with calculations and manual entry. The problem was much bigger in the case of a giant organization as it involved lengthier and complicated tasks. But with the help of automation, accountants don’t need to waste their time on the manual entry and calculations involved in the accounting operations and thus they are able to save a lot of time which can be used in other important accounting tasks.
Speed in the accounting operations matters a lot and especially in situations where you need to follow the deadline. Accounting is surely a very lengthy process and that’s why earlier, accounting professionals were not able to keep up with the pace. But automation showed accountants a new of getting the job done. With the help of automation, accountants were able to get things done at a much faster pace and that helps the accounting industry to grow as well.
Automation has played a major role in changing different industries and the accounting industry is no exception to it. With the help of automation, accounting professionals have been able to save time, be more productive and minimize errors as well.