What are the Top Tech Trends in Accounting?
In 2021, revenues in the accounting industry managed to keep pace with the wider UK services sector, growing by 14.8% year-on-year. During this time, the accounting sector turnover leaped to £36.6 billion, representing the most significant turnover ever on these shores. There’s no doubt that several high-tech trends are essentially driving this growth. But which of these are the most influential? Let’s find out!
Big data refers to the capability of businesses to collate and analyze vast and diverse datasets, utilizing increased computer power and advanced algorithms to reveal complex patterns. Another critical facet of big data technology is gathering and analyzing data from unstructured sources such as social media, which represents a considerable advantage in financial fields such as accounting.
Another huge perk of big data is its ability to provide real-time insight into financial matters. It achieves this by processing documents faster than ever with Natural Language Processing (NLP), delivering instant feedback and insight while allowing for much more informed and efficient changes over time.
This tech trend will become increasingly influential across the board in the future, with the global market for this technology experienced to peak at an impressive $234.6 billion by the year 2026.
Robotic Process Automation (RPA) refers to a generic set of automation tools to replicate various manual or repetitive admin processes. It’s commonly used in fields such as accounting thanks to its capacity for replicating repetitive processes at scale with minimal fuss or without consuming valuable human resources.
There are numerous advantages to leveraging accounting automation, such as Robotic Process Automation (RPA), as this helps to negate the risk of human error in accounting and prevents clients or users from suffering potentially significant financial functions. At the same time, it helps to streamline accounting processes and improve efficiency without compromising on the speed of delivery, which is highly important in a competitive marketplace.
Top Tech Trends in Accounting: The Internet of Things (IoT)
The Internet of Things (IoT) is now a well-known concept that utilizes sensors and devices to help connect the virtual and physical realms. You may need expert help and guidance to leverage IoT within your accountancy firm, especially if there’s a need to govern investment and management accountancy roles, successfully track records and maintain accurate ledgers.
However, embracing IoT can enhance efficiency (especially when monitoring or auditing accounts) and streamline processes while creating new opportunities to collate and utilize potentially essential datasets. Ultimately, the continuous monitoring and tracking of accounts contribute to more efficient and stress-free audits, whether you’re conducting this internally or asked to provide information as part of a more detailed external audit.