Seven of the Top Technology Trends in Accountancy Today

The way the accounting profession practices is changing drastically at present. Technology has certainly played a major role in this transformation, and there are a number of trends that are currently having a major impact on the accounting profession. As the world becomes increasingly digital, accountants will need to stay up to date in these latest trends and technologies to remain competitive, and indeed to be able to gain successful employment. This article explores seven of the top technology trends that are transforming the accounting profession, but also adds a note of caution in outlining some concerns that the use of technology can bring.

1. Cloud computing is a major technology trend that is having a considerable effect on the profession. It allows accountants to access data and applications from any location, at any time, without having to install any software. This makes it easier for accountants to collaborate with colleagues, access data from multiple sources, and store data securely. Additionally, cloud computing can help reduce costs by eliminating the need to purchase and maintain expensive hardware. It is important to point out, however, that there are some concerns over the use of cloud computing in accountancy. It certainly raises issues over data security and privacy, the lack of control over the data being stored, the potential for data loss due to system outages, and the difficulty of ensuring accuracy and reliability.

2. Automation is also bringing significant changes by allowing accounting professionals to automate mundane tasks such as data entry and invoicing. This can certainly free up time to focus on more complex tasks and to provide better services to clients. There are some concerns with automation, though. The increasing automation of accounting processes does present the possibility of falling job security, as more and more tasks are given over to automated services. Further, there is certainly the potential for errors due to the reliance on automated processes, which will still need to be scrutinised by an employee at some point.

RELEVANT COURSES BY EIMF

1. 11/04/2023 - Mandatory Disclosure of Cross-Border Arrangements (“DAC 6”)

2. 24/04/2023 - Fintech and the Cyprus Tax System

3. 02/05/2023 - Internal Audit Quality Assessment Workshop

3. Artificial intelligence (AI) is being used in the accounting profession to automate systems and to provide insights into data. AI can be used to detect fraud, analyse financial statements, and provide predictive analytics. It can also, hopefully allow accountants to make more informed decisions and help to reduce the chances of financial losses. All that being said, there are a number of professionals who believe that although AI algorithms can be used to identify patterns of fraud, they can also be used to mask fraudulent behaviour by providing false data. In addition to this, it is important that accountants develop the new skills that are required to understand and interpret the highly complex and detailed data sets that are now being produced.

4. Blockchain is a distributed ledger technology that is being used in a wider and wider variety of industries, including accounting. Blockchain technology is currently helping accountants by providing them with a secure and reliable method of accounting. It allows for accurate and efficient record keeping, as well as providing a secure way of transferring money between parties. Blockchain technology is also helping accountants to increase transparency and security when it comes to auditing financial records. It can also help reduce the cost of auditing, as it can provide a single source of truth for all transactions. But, as with other areas of technology, there is the potential for fraud or errors in the data, and as blockchain technology is still relatively new and still developing, there is also the potential for a lack of understanding and misuse of the technology by accountants.

5. Big data is another technology trend that is having a major impact on the accounting profession. Big data can help accountants make better decisions by providing them with insights into customer behaviour and market trends. It does this by helping professionals to analyse large amounts of data quickly and accurately. Big data can also help accountants identify opportunities for cost savings and fraud prevention. Although the use of big data is valuable, it also presents potential privacy issues as it collects and stores large amounts of personal information. Data breaches in the management of this data could lead to unauthorised access to confidential information, and accountants will need to ensure that the data collected and stored is secure from malicious actors.

RELEVANT COURSES BY EIMF

1. 11/04/2023 - Mandatory Disclosure of Cross-Border Arrangements (“DAC 6”)

2. 24/04/2023 - Fintech and the Cyprus Tax System

3. 02/05/2023 - Internal Audit Quality Assessment Workshop

6. Mobile accounting is increasing allowing professionals to access data and applications from anywhere. A great deal of accounting work can now be carried out on devices such as smartphones and tablets. Mobile applications allow accounting professionals to work remotely, collaborate with colleagues and clients, and access data from anywhere. Although this is certainly providing the chance for many more accountants to have a more flexible or hybrid working pattern, and has freed many from the need to commute to an office each day, it does have its dangers. For a great many professionals in all walks of life, the ever-active, ever-in-contact working world has added significantly to work pressures and stress. It has also blurred the boundaries between work and home, which for many has been quite damaging.

7. Digital payments are another technology trend that is having transformational effects in the profession. The use of digital payments means payments can be accepted from customers quickly and securely, reducing the time it takes to process payments because digital payments are more efficient and cost-effective than traditional methods. Furthermore, the use of digital payment methods encourages clients to keep better records of their finances, leading to better oversight and management of financial information. However, there are some potential problems with digital payments for accountancy. These include the increased risk of fraud and cybercrime, as well as challenges for accountants in ensuring the security of customer data. Additionally, digital payments may require accountants to invest in new technology to properly manage them.

By leveraging the latest technologies, accounting professionals can certainly provide better service to their clients, automate mundane tasks, and access data from anywhere. The world of accounting is certainly changing rapidly as new technologies present new opportunities, but also bring with them fresh security, management and training challenges.  

by EIMF