There are three technological innovations that are blindsiding some accountants who earned their degrees years ago. In the future, accounting professionals who are trained in these technologies will have an edge over bookkeepers and accountants who only understand the traditional methods. If you’re a bookkeeper or accountant, or an executive or entrepreneur who works with either bookkeepers or accountants, these are the three transformational technologies you need to familiarize yourself with.

 1.   CLOUD ACCOUNTING

Cloud accounting is life-changing technology for both accountants and their clients. One of the primary benefits is that it increases flexibility for both parties, reducing the need for face-to-face meetings and close physical proximity to each other.

Cloud accounting opens up opportunities for accountants to service remote clients. In the future, this is likely to result in increased opportunity for accountants in areas where the cost of living is low. It could also, unfortunately, result in stagnating opportunities for accountants in high-cost locations.

In the past, accountants worked from office locations. It is possible that perhaps cloud accounting could enable the accountants of the future to join the crowds of digital nomads who are working remotely while traveling the globe.

2. ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING ALGORITHMS

Machine learning technology is enhancing the efficiency of accounting software dramatically. One example of this: in years past, assigning account codes was tedious for both business owners and accountants. Errors in account code assignments were commonplace.

Now, with the help of accounting software that uses machine learning processes, the software is able to suggest the right account code for each transaction. As a result, the accounting process is more accurate and efficient.

3. BLOCKCHAIN

Blockchain technology, also known as distributed ledger technology (DLT), is poised to render the usual system of double-entry bookkeeping obsolete. Blockchain allows a massive global network of computers to record each transaction, making the records virtually tamper proof.

The implications of this are staggering. It is even possible that blockchain could soon eliminate the necessity for quarterly audits of publicly traded companies.

While blockchain hasn’t yet been widely implemented by banks and other financial institutions, that is about to change. CNBC reports that multiple banks are working on incorporating their own private versions of this technology into processes like loaning money and settling trades.

IBM has just unveiled a new platform called Ledger Connect that is intended to make it easy for banks to incorporate blockchain technology more widely into their usual operations.

Since accounting issues affect almost every individual and business on earth, it is possible that these three technological innovations could have direct implications for you.

If you’re a bookkeeper or accountant who is not yet well-versed in these technologies, you’ll want to work on updating your skills. You have competitors who are skilled at working with these innovations, and it won’t be long before they’re undercutting you and eroding your business. Ignoring the technology is hazardous to your bottom line.

If you’re a student who’s thinking of becoming an accountant, you’ll want to make sure that the degree programmer you choose will help you gain the skills you need to use these technologies. Some degree programmers incorporate practical training in these technologies into the curriculum, whilst others are only teaching the archaic traditional methods of accountancy. Before you commit to enrolling in a degree program, it is prudent to ask your admissions counsellor numerous questions about the technology the instructors will be teaching you. Ensure that the program is up to date.

If you’re an executive or entrepreneur who uses accounting services, make sure that the accounting professional you’re working with is using the latest technology available. If not, they are probably clinging to outdated and inefficient methods. As a result, your business may be paying more for accounting than it should be.

If that is the case, it might be time for you to interview some other accountants. You might be able to find a better service provider.

We have yet to experience the full effects of the changes these technologies will produce, but one thing is certain: accountancy is in the process of undergoing irrevocable change. Accountants, executives and entrepreneurs will need to keep pace with the changes.

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