The financial services industry is one of the most rapidly evolving sectors in our economy, especially in Asia. Technological advancements, such as mobile payments and cloud-based accounting software, radically transform how businesses operate and interact with their customers.
Moreover, a cultural shift in the accounting business has been causing technological changes, according to roughly 90% of accountants.
For accounting firms, the mainstay of their business has been providing compliance and advisory services to their clients. However, with the advent of fintech, a new breed of startups is challenging the status quo and offering innovative solutions that shake up the industry.
Fintech or financial technology describes the new wave of technological innovations reshaping the financial services landscape. From payments and lending to investment and insurance, fintech has a significant impact on all aspects of the industry.
The most significant disruption has come in cloud-based accounting and bookkeeping software. This new breed of software is changing the way businesses manage their finances. It quickly gained popularity among small businesses and fast-growing startups because of its easy setup and convenient interface.
More than 58% of accounting firms invest in accounting solutions to meet customer needs. In addition, more than 64% of small and medium businesses leverage accounting software to manage their overall finances.
Fintech innovations are changing how businesses operate, but they also change the accountant’s role. In the past, accountants were mainly focused on compliance and tax preparation. However, with the advent of fintech, they can now provide more value-added services such as advisory and consulting.
Financial data is flowing at a much quicker rate than ever before. With more power in the hands of critical decision-makers inside enterprises, companies can make more responsive and better-informed decisions due to increased access to data, automation of processes, and integration of software and tools.
Continuous innovation in artificial intelligence and machine learning can showcase far more critical information than manual analysis has provided.
This is changing the way businesses understand and predict customer behavior.
Algorithms can now identify financial risks and opportunities much earlier than ever before, which provides a competitive advantage to those who can leverage them.
The rise of mobile commerce and mobile payments also plays a role in transforming the accounting industry. With more people using their smartphones to make purchases and payments, businesses are starting to see the benefit of using mobile apps to manage their finances.
Faster access to data, insights, and information has allowed businesses to make more informed and responsive decisions. In addition, the automation of processes has freed up time for companies to focus on growing their business.
The integration of software and tools has made it easier for businesses to manage their finances. In addition, the adoption of cloud-based accounting software has made it possible for companies to operate from anywhere globally.
The accountant’s role is changing from compliance and tax preparation to advisory and consulting. This change is being driven by the need for businesses to have more value-added services.
With AI, Automation, and Cloud Accounting systems taking over many of the traditional, time-consuming tasks of accountants, there is a significant potential for significant savings in terms of time and money.
With the advent of new technology, accountants and bookkeepers can now provide more value-added services such as financial advisory, fundraising, personal tax consulting, investment advisory, and small business growth consulting.
As businesses become more globalized, the need for accountants and bookkeepers who can provide services in multiple languages and across domains will become more critical.
The use of technology will also allow accountants and bookkeepers to become more efficient and provide a higher quality of service. Technology will also change the way accountants and bookkeepers communicate with their clients. With the use of online collaboration tools, they will be able to provide real-time advice and support.
The adoption of cloud-based accounting software will make it possible for businesses to operate from anywhere globally. For example, this will allow accountants and bookkeepers to work with clients from all over the world.
Technology will also change the way accountants and bookkeepers charge for their services. With the use of online invoicing and payment systems, they will be able to offer their services on a subscription basis. This will make it possible for businesses to pay for only their services.
AI & Robotics: With the help of Artificial Intelligence and Robotics, repetitive and time-consuming tasks such as data entry, invoicing, payment reminders, inventory updates, and bookkeeping can be automated. This will free up time for accountants and bookkeepers to focus on more critical tasks.
Cloud Technology: The cloud has been a game-changer for the accounting industry. It has allowed accountants and bookkeepers to access client data and deliver financial information and reports through the cloud anytime and anywhere. This has heled to collaborate easily with clients and work on client accounts remotely. In addition, this has allowed accountants to engage more with their customers and encourage strategic tasks rather than tiresome paperwork.
Tax Software Innovations: Tax software created in recent years has improved data and computing accuracy while lowering the margin of errors, which businesses want to embrace to eliminate tax penalties with stakeholders and authorities. Tax software is also used to improve the efficiency and effectiveness of tax audits.
Dynamic Mobile Apps: Mobile apps have changed the way businesses and consumers interact with their accountants or bookkeeper and data. Mobile apps allow companies to track expenses, income, invoices, and receipts on the go. This has helped for companies to manage their finances easily and stay on top of their accounting.
Blockchain: Blockchain is a distributed database that allows secure, transparent, and tamper-proof transactions. This could potentially revolutionize the accounting industry by making it easier to track financial transactions and reduce the chances of fraud. In addition, blockchain could also make it easier to audit financial statements and records.
Accountants who wish to stay competitive in the accounting sector must embrace the rapid changes in accounting technology. It also entails staying up to date on technological developments, optimizing and adapting existing accounting software to match the demands of their business, and being open to adopting and learning new technologies.
While technology will continue to change the accounting industry, one thing remains certain – the need for qualified and experienced accountants will always be in high demand.
Businesses need to hire accounting services to ensure that their financial records are accurate and up-to-date. Hiring an accountant or bookkeeper is cost-effective to ensure that your finances are in good hands. In addition, accountants and bookkeepers have the training and experience necessary to manage your finances and protect you from potential financial risks.