The Future of Accounting

Recently updated on March 7th, 2024 at 11:15 am

Automation to Keep Up With Demand

The Future of Accounting: In business, the one thing you can count on is change. From remaining relevant while startups disrupt a whole industry to adapting to new operational models, professionals in every industry must adjust to major changes, many of them driven by new technologies.

New technologies start out as the best thing since sliced bread but quickly become a necessity as the world speeds up around them. A good example is the telephone switchboard operators that were replaced with technology. Today, even if everyone in the world were a switchboard operator, our modern digital world would fall apart. And if your firm is using manual processes, the equivalent of switchboard operators in accounting, it will soon be left behind.

Emerging Accounting Technologies To Be Aware Of

Advances in technology are changing the way accounting is done. To navigate the future, you need to understand what accounting automation technology exists and how that technology will affect professional life.

Big Data

Data is as key to the future of accounting as it is to so many other businesses. Accounting software stores financial data. Other software stores operational and inventory data. And this data is not just vital for audit reasons. It is helpful for forecasting the future and making better decisions.

Cloud Accounting Is The Future

Integral to your success at using data to give your clients better insights about their business is cloud accounting. The cloud allows instant access to resources from anywhere, at any time, with any device. Software running on the cloud can connect to all your clients’ pertinent “big data” sources and is updated continuously. So numbers are always accurate, and the analysis performed on them is precise.

Automated Accounting

Labor- and time-intensive tasks, like audits, banking, tax preparation, and payroll, can now be handled by automated processes. That means tasks will be done quicker and more accurately, with no human error. With data entry and reconciliation happening automatically, the more strategic managerial and analytical tasks will be left to the accounting staff.

Dynamic Financial Dashboards

Static reports are a thing of the past. With data available from every platform and automation constantly syncing to accounting software, it only makes sense that reports would be dynamic too. Modern, drag-and-drop financial dashboards allow you to customize dynamic reports for each of your clients and give them a better view of how their business is doing and how they can grow it in the future. Learn more on the dynamic financial dashboard of Business Intelligence.

Skills Needed for Accounting Professionals in the Future

Obviously, changes in technology will require accountants to change their skill sets. With big data and accounting automation, they won’t need to do tasks like data entry and bookkeeping. This can be handled for them. But they will need to learn to use new technologies, like cloud accounting software and financial dashboards.

With automation taking over, accountants will be called on to perform the administrative, managerial, and analytical tasks that technology can’t do. Accounting firms that step into the advisory role will be better prepared for the future and remain relevant. This means accounting professionals will need to learn how to use data visualization to transform data into insights and how to analyze data to spot trends and patterns.

Embracing the Future of Accounting

Future accounting jobs will require professionals who can grow along with the industry. Accounting isn’t going away because of technology. It is just getting better, giving professionals in the industry a more important, higher-value advisory role in business.

PathQuest can help you prepare for this future. PathQuest SCALE is an automated accounting solution that integrates with Xero, QuickBooks, Intact and other platforms, keeping all client data up to date in real-time. SCALE comes with PathQuest BI, our accounting business intelligence software, so you can provide your clients with accounting dashboards and reports that fit their business and give them insights to grow.

Published on: 19 July 2022

Author

John Bugh

John Bugh is Chief Revenue Officer for PathQuest, responsible for the strategic direction, planning, vision, growth, and performance of the company’s marketing, branding, and revenue streams.

As a seasoned professional with over 35 years of experience in executive sales, marketing, and operational leadership, John has worked to build high-performing leadership-teams that have a demonstrated track record of accelerating growth, increasing revenue, establishing sustainability, and improving profitability.

He is an avid life-long fan of the NY Yankees and loves to snow ski with his family whenever he has the opportunity!