When we think about the future of business, we often think of the highest of tech (and maybe delivery robots). In reality, the thing that will truly transform business is the people, with a little help from tech.
After all, technology is a tool that makes it easier for people to do their jobs and do them well. And while accounting isn’t a physically demanding job, it can be very time-consuming and monotonous. Let’s take a look at how accounting software will transform the future of business, by changing how people work.
From brick-by-boring-brick to fully automated
One day, accountants will tell their accountant grandchildren about the old days of one manual task after another. This will sound like our grandparents “walking uphill both ways” because of the ubiquity of automation.
One of the most powerful ways accounting software is transforming business is through automation. Accountants no longer have to comb through every account in the chart of accounts making manual entries or reconciling. Many of these steps can be automated to save time and energy (while also cutting down on human errors as the numbers all blur together.) This is a huge benefit in terms of time savings and also makes possible the other advantages we’re about to discuss.
From monthly numbers to real-time numbers
One of the biggest advantages of automated accounting software is that it can run in real-time and provide you with numbers that are always up to date, rather than waiting until the end of the month or even the end of the week to complete a certain accounting process.
When we think of accounting as a compliance function that keeps companies out of trouble with the IRS, the SEC, and anyone else who might want to see the numbers, it’s easy to take the whole department for granted. But accounting is much more than that. The accounting department (equipped with the latest accounting software) should be serving the rest of the company by providing vital information for better decision making. The more accurate and timely the numbers are, the better the business will run.
In addition to having numbers that are more accurate and timely, accounting software also helps you have all your numbers in one place. By connecting your main accounting software to other tools you use, you can access more information in one place, making the decision process that much easier.
For example, you may have a specific tool for inventory management that syncs with your accounting suite. This could give you deeper insights into problems and opportunities without having to track down information in multiple places. Or maybe your monthly closing software provides a flux analysis to identify numbers that are changing from month to month, allowing you to drill down into the numbers to find out what’s happening. With this kind of connectivity, companies are much more agile and able to more easily solve problems.
From crunching the numbers to guiding strategy
While the software creates efficiency and accuracy, what it really does is set humans free to do more important things. Accountants really shouldn’t be spending hours every day and days every month making journal entries, reconciling accounts, and triple-checking numbers.
The true potential of accountants to contribute to their companies is just starting to show. For decades, they’ve spent a large percentage of their time on the “necessary evils” of data entry and number crunching. This has kept these highly trained experts from sharing their expertise.
Today’s accounting software frees accountants to focus their time and energy on more strategic projects. When the day-to-day accounting tasks can be done quickly—or even automated for a completely hands-off workflow—the team has far more time to interact with other departments and help guide decisions. Rather than pushing paper and generating data, they can help interpret the data for key decision-makers and analyze what it means for the company.
Data at your fingertips
In addition to being fast, automated, and accurate, the accounting software that will take us into the future is cloud-based. Cloud-based accounting software allows a team to work together from anywhere in the world and collaborate seamlessly. That means whether your company and remote-first, working from home temporarily, or working with external accounting experts, you’ll be able to access crucial numbers exactly when and where you need them.
No need to pull paper from a file cabinet, walk to the annex (people say it’s icky), or even send an email to request a report. All the data in the accounting system can be accessed by anyone with permission and an internet connection, making it easier to run a business with any sort of distributed team.
Who wins with smarter accounting software?
Whenever we discuss the future of accounting and how smarter software will impact it, there’s bound to be fear around jobs being lost to computers. In reality, smarter accounting software not only transforms the future of business but also allows everyone to benefit at the same time.
For companies, we’ve already talked about the benefits of real-time data and faster decision making, along with more insights from the accounting team. For the accountants themselves, better software isn’t a step towards extinction, it’s actually a step forward in their evolution. The more menial tasks are automated, the more accounting experts get to flex their expertise and spend their time and energy on meaningful, challenging work. When the humans who best understand the numbers are set free to apply that knowledge, the future of business will never be the same.
